Many types of losses may occur at construction sites, such as injuries and property damage. To protect against these scenarios, states require contractors to purchase a secure general liability. However, depending on the size of the contract, some states allow contractors doing small jobs without insurance. If you are a contractor, you must have a liability insurance generally you can protect you from financial ruin in case of negligence or acts of omission.

General liability

No matter how careful you are, things always happen you cannot control. For this reason, contractors have to purchase insurance general liability. Insurance normally protects the assets of the work in case of lawsuits from by mutilation or death, property damage, lack of equipment, theft, fire and explosions, and contractual responsibilities. Before purchasing a general liability insurance, be sure to fully understand the scope of the coverage offered. This will vary according to each policy.

Umbrella liability coverage

Larger contractors with large construction sites often buy umbrella liability coverage. The general liability insurance has a maximum limit of payments that cannot cover all your responsibility. A liability insurance policy with umbrella coverage provides coverage if your policy liability insurance does not provide sufficient coverage. Policies umbrella liability coverage can cover the cash flow from a large contractor. The umbrella liability insurance provides a safeguard in case your coverage liability insurance is not enough.

Exclusions

Before purchasing a liability insurance contractor, make sure you fully understand the exclusions contained in the insurance policy. You know exactly how your insurance policy will protect you and that situations will not. All insurance policies have some exclusions. To address these exclusions, you can usually buy pilots or other types of insurance such exclusions. The types of insurance that can provide coverage for insurance exclusions general liability of the contractor include omissions liability insurance, liability and director and officer liability insurance professional.

Perceived risk

When subscribes an insurance policy general liability of a contractor, the insurance company considers the perceived risk of your work. The construction works are not equal and some sites involve more risk than other types of sites. Make sure your insurance agent fully understands the nature of the construction. You want to make sure that you have purchased enough coverage, but at the same time do not want to buy more coverage than you need.