Knowing the risks are lurking on the horizon every day you are open for business, it makes great financial sense to transfer these risks to a financially stable insurance carrier. In most cases, the commercial insurance policy has an established limit of one or two million dollars. Additionally not all general liability polices are same.
That’s why it’s so important to know about electrical contractor insurance. In short, it depends on where your business is located. The cost depends on several factors, including the size of the business and its location, as well as its gross sales/receipts and payroll. It’s typically expected, however, to be at least in the low thousands.
Liability insurance is critical for those who may be held liable for injuries to others, or in the event that the insured party damages someone else’s property and is considered to be at fault. A product manufacturer may purchase product liability insurance to cover them if a product is faulty and causes damage to the purchasers or any other third party. Business owners are exposed to a range of liabilities, any of which can subject their assets to substantial claims. In this situation, the customer can sue your business for failure to deliver the goods it promised. Contractors liability insurance policies have deductibles and limits and they have their own caveats for what is and isn’t covered. When you are a professional contractor, you always want to work in a professional manner. Multi-million dollar lawsuits due to alleged negligence or other liability claims are on the rise. Contractors face larger and more expensive lawsuit costs than most other businesses. While injury and protections are of great concern, there are many other risks. Liability arising from any of your work can be costly. The bid bond insurance option covers the performance bond penalty and is often requested to guarantee that you will fulfill a contract and complete the work as stated. If subcontractors are working for you or you require insurance (including vehicle insurance), or you need an umbrella liability insurance for post-contract demobilization, wrap up liability insurance covers these situations. A lot can happen on a job site before, during, and after your portion of the project is completed. Even when you perform quality work, as a contractor, you may find yourself on the wrong end of a lawsuit. Builder’s risk insurance covers physical damage to a building during the construction process. Commercial auto insurance covers damage to company cars, trucks, vans and trailers used for business, as well as injuries and damages caused by an employee driving accident.