A big expense factor in a contractor’s construction bid will be the expense of the liability insurance for the project. The contractor’s existing general liability policy is probably not 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 following the job is performed. A per project policy is fantastic for construction bid circumstances like this.
A per project liability insurance coverage is strictly what it reads as. The contractor will get a liability quote for precisely the required amount and for only so long as 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 need too much following the work is completed either. Per project general liability is fantastic for a contractor’s general liability.
Two critical factors should be considered when looking into per project insurance. general liability insurance The foremost is the maximum payable amount and the second reason is the actuarial claim rate.
The individual or even more likely the corporation tendering out the bid will stipulate the minimum quantity of liability insurance requires. Suppose the required insurable amount is for twenty million dollars. That total coverage may be necessary for the bid but through 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 term of the contract.
The other factor is the actuarial. This is the incidence of claims for a specific type of application. For example, if the contractor is doing dangerous work like welding underwater the claim rates are 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 certainly be a better value than a global policy it doesn’t address the differing needs.
Per project contractor general liability insurance isn’t a completely new product but it is not a policy that most insurance underwriters haven’t been overly wanting to offer. Insurance agents prefer a long-term deal just like a life insurance coverage 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 be found, and is obviously worth finding, even if it requires some extra looking.