A big expense factor in a contractor’s construction bid will always be the cost 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 done. 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 as long as the specific job is underway. This means the contractor will have the right amount of insurance at the right time. He will not have too little during the job and will not have too much after the work is finished either. Per project general liability is fantastic for a contractor’s general liability.
Two critical factors is highly recommended when looking at 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 organization tendering out the bid will stipulate the minimum quantity of liability insurance requires. Let’s say the required insurable amount is for twenty million dollars. That total coverage could be necessary for the bid but during 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 simply for the word of the contract.
The other factor may be the actuarial. That is the incidence of claims for a particular type of application. For example, if the contractor does dangerous work like welding underwater the claim rates are much higher than work as an inside 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 significantly 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 that 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 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 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 certainly worth finding, even if it requires some extra looking.