How to Compare Liability Insurance Providers for Contractors
Working as a general contractor can be very rewarding, but it is important for contractors to protect themselves by purchasing the best liability insurance. There are a number of liability concerns contractors need to be aware of, including the possibility of injury to both workers and homeowners. Choosing a policy from a highly rated insurance company is the best way to mitigate those risks.
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Instructions
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Check out the ratings of each insurance company you are considering before moving forward. Insurance companies are rated by several different rating agencies, including A.M. Best (ambest.com) and Moodys (moodys.com/cust/default.asp).
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Ask your insurance agent about the difference between the two types of liability insurance available to general contractors. There are two types of insurance coverage available - occurrence and claims paid. With an occurrence liability insurance policy the contractor is covered for any claims made while the policy is in force, regardless of when those claims were made. A claims paid policy, on the other hand, covers only claims that are made while the policy is in force.
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Request quotes from all of the highly rated companies that write contractor liability insurance in your state. You can get a list of insurance companies currently doing business in your state by contacting your state's insurance commission. Be sure to request the same amount of liability coverage from each company; this will make comparing costs and coverage a lot easier.
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Compare the costs of each policy carefully, and be sure to read the fine print for any exclusions or limitations to which you may be subject. It can be helpful to have the advice of an attorney when comparing liability insurance coverage, so if your contracting firm works with a lawyer it may be a good idea to take the paperwork to his office.
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