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. |