Are you sure you have adequate insurance for your construction-related business? Best buy Contractors Liability insurance should protect your company. However, your insurer may, in some cases, reject your claim. This is why it’s essential to read and understand your policy.
Familiarize yourself with your construction insurance coverage. You’ll get to know what risks it covers or excludes and your duties regarding filing a claim and receiving a pay-out. However, most of us are unfamiliar with insurance terms or may not have the time to do this.
This is where your insurance agent is very helpful. The consultants at Contractors Liability will explain the terms and conditions of your policy. As well as the impact of exclusions and your deductible.
2 Reasons why they’ll reject your claim
If you’re on the market for the best Contractors Liability insurance to buy, you should also know why an insurance provider may deny your claim. Here are 3 common reasons why:
Failure to notify your insurer in time
Typically, a Commercial General Liability insurance policy dictates you notify your insurer of an occurrence that may result in a claim as soon as possible. And this is regardless of whether a third party has already filed a lawsuit against you or not.
Notify your insurance provider of an occurrence or a liability claim within a reasonable period. Then they can often settle the claim and prevent a costly lawsuit. Whereas, late notice on your part could be considered a breach of the insurance contract. This could be grounds for denying the claim.
Claims made or occurrences that happened outside the policy period
Your policy period refers to the time between the exact dates and hours your coverage began and ended. The policy period determines whether your insurer will cover or deny a claim. It depends on your type of contractor liability insurance policy. Your options are:
It provides coverage for property damage or injuries resulting from incidents within the policy period, regardless of when the claim was filed. Let’s say a client sues your business in 2020 for an injury they suffered in 2015. If you had an occurrence policy when the incident occurred, then the claim will be covered.
It covers your business for claims filed during the policy period. In a situation like the one above, a claims-made policy will only cover you if it’s still in effect when the claim gets filed. But if it had already expired at the time, the claim will be denied.
Note: Both types of policies will not cover claims resulting from risks, circumstances, or property excluded from coverage. It is advisable when you find the best Contractors Liability insurance to buy to familiarize yourself with its exclusions.
Paying claims out of pocket
The best buy Contractors Liability insurance will help pay for third party property damage or bodily injuries. If someone other than you or your employee sustains an injury on your construction site or your business premises, you should not make any payments to them or incur any expenses, except for first aid.
Any voluntary compensation you make or agree to make without your insurer’s consent is essentially a breach of a policy condition. Consequently, your insurance provider may deny any resulting claims.
Call Contractors Liability
Do you want the best buy Contractors Liability insurance for your business? Call the best in the industry. Call Contractors Liability today at (866) 225 1950 for a free quote.