A big expense factor in a contractor’s construction bid will always be the expense of the liability insurance for the project. The contractor’s existing general liability policy might not be sufficient to meet certain requirements of a particular job being bid for but upping the coverage on his regular liability insurance could leave the contractor in a grossly over-covered position after the job is performed. A per project policy is fantastic for construction bid circumstances such as this.
general liability insurance A per project liability insurance policy is strictly what it reads as. The contractor will get a liability quote for exactly the required amount and for only so long as the specific job is underway. This implies the contractor will have the right amount of insurance at the right time. He will not need too little during the job and will not need too much after the work is finished either. Per project general liability is ideal for a contractor’s general liability.
Two critical factors is highly recommended when looking into per project insurance. The foremost is the maximum payable amount and the second reason is the actuarial claim rate.
The individual or even more likely the organization tendering out the bid will stipulate the minimum level of liability insurance requires. Suppose the mandatory insurable amount is for twenty million dollars. That total coverage may be required for the bid but during the general business of the contractor, perhaps ten million is more than sufficient. A per project general liability package could possibly be put in force simply for the word of the contract.
The other factor may be the actuarial. This is the incidence of claims for a particular type of application. For instance, if the contractor is doing dangerous work like welding underwater the claim rates are much higher than work as an interior painter therefore the rate per thousand dollars worth of insurance will naturally be greater for the underwater welding. A contractor needing liability insurance may often be quoting for work that’s of another actuarial rate.
Administration of the contractor’s office and his doing quotes involves much less risk than completing the contracted work does so per project general liability would definitely be a better value when compared to a global policy it doesn’t address the differing needs.
Per project contractor general liability insurance isn’t an entirely new product but it isn’t a policy that a lot of insurance underwriters haven’t been overly eager to offer. Insurance agents prefer a long-term deal such as a life insurance policy that simply has premiums running to eternity and beyond. Per project coverage requires the insurance for only a fixed term and at a fixed rate. Per project general liability insurance is optimal for the contractor’s insurance and per project general liability insurance can still be found, and is obviously worth finding, even if it requires some extra looking.