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FAQ

Why do I need insurance if I am a general contractor andsubcontract out 100% of my business to insured sub-contractors?

Your limits are split with your subcontractor giving you substantially less coverage.
What if something is your fault or happens from your direction?!
Do you really know what your sub-contractor is covered for?
Do you think your sub-contractor’s insurance company will have your best interest in mind?

How much is the down payment? Our down payments are usually about 30% down of the annual premium but can depend on product and state.

What is blanket additional insured? This is an endorsement on your policy that lets additional parties (landlords, general contractors, building owners,mortgage companies) be listed as and additional insured. If you and they are sued than they are with you on your policy instead of their own with respects to liability. With respects to property, the mortgagee receives the check from the insurance company and doles out the money when damage is fixed.

What is primary wording? This term is commonly used in contract insurance requirements to stipulate the order in which multiple policies triggered by the same loss are to respond. For example, a contractor may be required to provide liability insurance that is primary and noncontributory. This means that the contractor’s policy must pay before other applicable policies (primary) and without seeking contribution from other policies that also claim to be primary (noncontributory).

What is waiver of subrogation? A waiver of subrogation is a special type of endorsement on a property-casualty insurance policy. The Waiver of Subrogation prohibits the insurer from attempting to seek restitution from a third party who causes any kind of loss to the insured.

How much does an umbrella policy cost? It depends on the state and how much the underlying premium. It can be as high as $10,000 per million and as low as $400 per million.

What does workers compensation cover me for? Workers’ compensation is a form of insurance providing wage replacement and medical benefits to employees injured in the course of employment in exchange for mandatory relinquishment of the employee’s right to sue his or her employer for the tort of negligence.

Do I need workers compensation if I do not have employees? Yes you do. The reason for this is if you hire a sub-contractor that is uninsured and he is hurt it will cover them. This is the reason your general contractors or clients make you carry it and add them on as an additional insured…so they are grouped in with you if someone is injured and you cannot go after them.

How long does it take to get a policy in force? Most of our policies we can have out the door in a day… some in less than an hour.

Is coverage different in different states? YES. different states have different laws and coverage needs to be adjusted accordingly

What are minimum premiums for different type general liability policies?

  • Roofing $2900
  • Drywall $750
  • Painting $650
  • General contracting$ round 1% of revenue

Do I need an A rated carrier? Not necessarily. If you are doing work for large municipalities and large contractors you will need an A rated company. If you are doing residential work for homeowners you may not.

What is a Risk Retention Group?

Do you charge for certificates of insurance? Our agency does not charge for certificates of insurance

How quickly do you get certificates of insurance out? If in a rush we can get in an hour. Usually that day.

Why do I need Contractor’s Liability Insurance?

Contractor’s Liability Insurance is a requirement for both sole proprietors and corporations. Although you may bid for contractor’s work without proof of insurance in some cases, you are required to show your insurance before the time of work.
In most states, you are not allowed to operate without insurance, even if your client does not request it. Contractors insurance is a necessity to run a successful business.

What is the Cost of Contractors Liability Insurance?

Every contractor has different needs and exposures surrounding work. That is why it is important that you get a quote to find the exact cost for your situation. There is no specific price.
You can shop around for different rates and packages, but here at ContractorsLiability.com we do all the shopping for you.