A big expense factor in a contractor’s construction bid will be the price of the liability insurance for the project. The contractor’s existing general liability policy will not be 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 fantastic for construction bid circumstances like this.
A per project liability insurance policy is exactly what it reads as. The contractor can get a liability quote for exactly the required amount and for only so long as the specific job is underway. This means the contractor will have the right amount of insurance at the right time. He will not have too little through the job and will not need too much following the work is completed either. Per project general liability is fantastic for a contractor’s general liability.
Two critical factors is highly recommended when looking at 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 quantity of liability insurance requires. Suppose the mandatory insurable amount is for twenty million dollars. That total coverage could be required for the bid but during the general business of the contractor, perhaps ten million is more than sufficient. general liability insurance 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 particular type of application. For example, if the contractor does 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 a different 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 a completely new product but it isn’t a policy that a lot of insurance underwriters haven’t 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 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 requires some extra looking.