Insurance Policies That Home Contractors Should Have
General contractors, like home contractors, should understand their clients' insurance. There are different insurance policies today, and the consumer should know more about them before availing.
Here are the Insurance Policies that General Contractors need.
1. General Liability Insurance
This insurance protects contracting businesses from possible losses due to theft, vandalism, accidents, legal actions, and third-party injuries. For example, it covers costs if the worker accidentally damages a customer's property while working. It may also include legal services for claims and lawsuits.
2. Professional Liability Insurance
These are also called omissions and errors that cover the firm's design and contractors like home contractors who provide design services. It also protects from damages caused by a wrong design. This insurance will also cover the costs and damages to fix the problem.
3. Builder's Risk Insurance
This is known as a course of construction insurance that protects projects while in progress. It protects the materials installed from theft, vandalism, and other damages. It also covers damages to existing structures and buildings, yet it doesn't cover them during remodeling or construction.
4. Subcontractor Default Insurance
This insurance protects contractors against losses caused by subcontractors' defaults. It also helps cover expenses incurred when the subcontractor fails to perform.
5. Inland Marine
This insurance is also called equipment and tools insurance. It covers tools, materials, and equipment in transit to and from the site.
.
