A big expense factor in a contractor’s construction bid will always be the price of the liability insurance for the project. The contractor’s existing general liability policy might 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 following the job is done. 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 exactly the required amount and for only as long as the precise job is underway. This implies the contractor will have the right amount of insurance at the right time. He will not need too little through 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 into per project insurance. The first is the utmost payable amount and the second is the actuarial claim rate.
The individual or 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 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 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 much higher than work as an interior painter therefore 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 when compared to 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 a lot of insurance underwriters have not been overly eager to offer. general liability insurance 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 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 certainly worth finding, even if it takes some extra looking.