What does a small business owner need to know about contractor's insurance? According to Crestline Insurance Services LLC, in answer to this question, there are four things to know about general contractor insurance. These things to know about the general contractor insurance in Texas are as follows: first, you need to know that the general contractor insurance Texas is not an asset but liability. Basically, it is only protection from liability claims that a contractor can avail in the state of Texas.
In other words, a general contractor insurance in Texas is a "liability-specific" insurance. What does that mean? Basically, this means that the insurance is a "deductible-specific" insurance. This means that it only offers protection against liability claims. So basically, what you get from this type of insurance is protection from bodily injury or property damage that you may cause in the course of your work. Basically, it's a "catch all" type of insurance.
Another thing that you need to know about this type of insurance is that this type of insurance is not available in all states. In fact, in some states, including Texas, there is no state specific insurance for general contractor. This is why it is important that you seek comprehensive and specific insurance for your construction projects that fits your needs.
Third, you need to know that insurance companies offer general contractor insurance with a wide range of coverage options. With these options, you can choose the insurance scheme that suits your needs. It is important that you look into and compare each and every scheme before you decide on one. In fact, it's always best that you first talk to an insurance broker. A broker can help you understand better what you are getting yourself into. Besides, the broker can also give you options with respect to the level of protection and coverage that is available for you.
Next, knowing and understanding the level of protection and coverage that is offered by a general contractor insurance is critical. You need to make sure that you are not leaving anything to chance in case something happens. You can have insurance that covers your investment and your equipment for one hundred percent, but if it doesn't cover the total cost of the project, then you would be out of luck if an accident were to occur.
What does a general contractor's insurance cover? Basically, this type of insurance protects you from any claims that you might file against the company for negligence. There are three main types of contractor insurance that you can choose from: physical damage, liability and advertising. Basically, these are the three main things that this insurance will cover. If you have a liability policy, then it will protect you in case you have an accident while on your job, and the property of your customers are damaged due to your negligence. In the same vein, if you have physical damage, the insurance will cover any property damages that may occur due to your negligence or the property owner's fault.
Lastly, knowing and understanding the coverage of the insurance is critical. Some general contractor insurance policies will offer full coverage on both physical and liability damages, depending on the policy. Other policies will provide coverage only for liability. And finally, other general contractor insurance policies will provide coverage for only one of the three: physical or liability. However, there are some instances wherein you may need both physical and liability insurance.
These are the three main types of general contractor insurance that you should know about. What do you think about them? Which one do you think is more important for you? What do you think will you be needing? Let us know in the comments section below.
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