A big expense element 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 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 coverage is exactly what it reads as. The contractor can get a liability quote for precisely the required amount and for only provided that the specific job is underway. This means the contractor will have the right amount of insurance at the proper time. He will not have too little through the job and will not have too much following the work is finished either. Per project general liability is fantastic for a contractor’s general liability.
Two critical factors should be considered when looking at per project insurance. The first is the utmost 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 amount of liability insurance requires. Let’s say the required insurable amount is for twenty million dollars. That total coverage may be required for the bid but during the general business of the contractor, perhaps ten million is more than sufficient. A per project general liability package could be put in force just for the term of the contract.
general liability insurance The other factor is the actuarial. That is the incidence of claims for a specific type of application. For instance, if the contractor is doing dangerous work like welding underwater the claim rates are higher than work as an inside 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 is 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 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 a lot of insurance underwriters have not 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 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 still be found, and is certainly worth finding, even if it requires some extra looking.