A big expense element in a contractor’s construction bid will be the expense of the liability insurance for the project. general liability insurance 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 after the job is performed. A per project policy is ideal for construction bid circumstances such as this.
A per project liability insurance policy is exactly what it reads as. The contractor will get a liability quote for precisely the required amount and for only given that the precise job is underway. This means the contractor will have the right amount of insurance at the proper time. He will not need too little during the job and will not need too much after the work is completed 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 amount of liability insurance requires. Suppose the required insurable amount is for twenty million dollars. That total coverage may be required 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 simply for the word of the contract.
The other factor may be 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 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 another 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 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 a lot of insurance underwriters have not been overly eager 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 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 obviously worth finding, even if it takes some extra looking.