Contractors Insurance

Contractors insurance provides protection against legal liability arising from the performance of their work. In the event of an on the job injury, a contractor may be held liable for the negligent acts of a subcontractor hired to perform work. The difficulty of obtaining or maintaining general contractors’ insurance coverage is directly related to the amount of work the contractor subcontracts. On a scale of 1 to 5, with 5 being the most difficult, producers rated the degree of difficulty in obtaining coverage for a contractor who subcontracts 75% of their work at 4.4 compared to 2.4 for those contractors who subcontract little or none of their work. It also appears that for general contractors, insurance companies tend to favor contractors whose workers have three or more years of experience, as well as artisans and skilled workers to general laborers. Premium comparisons for commercial business are difficult, but based on insurance company responses, the premium increase for general contractors who subcontract 75% of the work is estimated to be four times the amount reported for those contractors who subcontract little or no work.

Colstan provides Constractors Insurance - contact us for a free quote.