A big expense element in a contractor’s construction bid will always be the expense of the liability insurance for the project. general liability insurance The contractor’s existing general liability policy may not be sufficient to meet the 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 like this.
A per project liability insurance policy is exactly what it reads as. The contractor can get a liability quote for exactly the required amount and for only given that the precise job is underway. This means the contractor will have the correct amount of insurance at the proper time. He will not need too little during the job and will not have too much following the work is completed either. Per project general liability is ideal for a contractor’s general liability.
Two critical factors should be considered when looking into per project insurance. The foremost is the utmost payable amount and the second 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 required insurable amount is for twenty million dollars. That total coverage could be necessary for the bid but through the general business of the contractor, perhaps ten million is a lot more than sufficient. A per project general liability package could be put in force just for the word of the contract.
The other factor is 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 so 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 a different 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 than 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 most insurance underwriters have not been overly wanting to offer. Insurance agents prefer a long-term deal like a life insurance policy that simply has premiums running to eternity and beyond. Per project coverage requires the insurance for just a fixed term and at a set rate. Per project general liability insurance is optimal for the contractor’s insurance and per project general liability insurance can be found, and is obviously worth finding, even if it requires some extra looking.