Construction accidents can happen. Risks are higher than you may have been imagining it before you started working as a contractor. The moment you land your first project, you’ll realize that there are far more pitfalls and risks to address than you initially believed. Understanding liability is, therefore, of crucial importance if you want to keep yourself protected, and you can learn more about that concept on this page.
If you’ve already done some research on this topic, then you already get that it is the general contractor’s liability insurance that will keep you protected. Providing you with the security you need, a great policy will help you avoid huge financial losses in case of an accident. Thus, it will also allow you to continue business operations as usual, not having to put a stop to it all because you have been dealt a huge financial blow.
Apart from that, this type of insurance is also important because it helps you score more clients and possibly more valuable projects. This is because clients will always prefer working with those contractors who are adequately insured than with those who aren’t. Clearly, thus, getting the right general contractor’s liability insurance is a must, and you know it.
What you may not know, though, is that people often make mistakes when it comes to getting this type of coverage. They go through the process without being careful enough, and they wind up regretting their decisions afterward upon realizing that they aren’t as covered as they would like to be. You don’t want the same thing to happen to you, am I right?
Here’s a bit more about your liability in those cases when you’re using subcontractors: https://www.legalzoom.com/articles/understanding-your-liability-when-using-subcontractors-for-construction-projects
Since you absolutely don’t want the same thing to happen to you, here is what we will have to do. Put simply, I will get you familiar with some of the common mistakes that people make in this process. And, your task is to go through those and remember them, doing your best not to repeat them while getting your general contractor’s liability insurance. Without any more ado, let’s check the mistakes out.
General Contractor’s Liability Insurance
1. Choosing at Random
Type in the necessary keywords into your browser and let the results show the companies you can work with and the policies you can get. Then, close your eyes and point at one of the solutions randomly. That’s how you should choose. Not.
The above is a bit of an exaggeration, but the truth is that a lot of people often choose at random. They come across one company or another and immediately assume that they’ve found the perfect solution. This stems from their unwillingness to do the hard work and actually research the solutions before choosing. Don’t do the same thing. Always research first and choose second.
2. Not Working With Brokers
Probably the biggest mistake you can make is to assume you can go through all of this alone without the help of professionals. While nobody will prevent you from doing that, the truth is that you will have a higher chance of finding the perfect policy if you work with brokers. Not working with them is not the wisest move, and the sooner you understand that, the sooner you’ll start the cooperation that will lead to getting the best policy.
3. Not Choosing Your Brokers Carefully
Understanding that you need a broker is one thing. Understanding that you need to choose one carefully is a completely different thing. Don’t assume that they are all the same and that you’ll get the same quality of services from all of them. Since your goal is to get great contractors insurance, you will absolutely need to work with great brokers. So, take your time to choose them wisely.
4. Not Stating Your Specific Requirements
The brokers are there to do the hard work for you. Yet, you have to cooperate with them in order to have the most success. In short, you need to state all of your specific requirements to them so that they can find you the perfect solution. Not doing so can lead to the pros being unable to hunt down the best policy for your business.
5. Choosing Based on the Fee
You’ll need to pay a fee for the insurance and that’s completely normal. Aiming to pay a reasonable amount is also normal. Choosing your policy based on nothing else but that fee is, however, a mistake. There are other factors to consider, and the fee is only one of those, so make sure not to give it too much power.
6. Not Comparing the Policies in Details
Let me expand on the above. When you choose based on fees alone, then you fail to compare the actual policies in detail. You fail to check what it is they cover that. This can lead to regrets later on, so remember to always compare the coverage before making a final choice.