General Contractors Insurance

General contractors must navigate many risks and exposures on a daily basis. Customers rely on your business to complete projects on strict timelines while adhering to various details and conditions of contracts. Projects for which you are hired represent significant financial investments for both you and your clients. Furthermore, work sites may include many risks and hazards. With all of this in mind, general contractors must have adequate insurance coverage.

The agents of Lone Star Insurance are dedicated to helping individuals, families and businesses in the Burleson and Cleburne areas and throughout Texas understand and address their insurance needs.

What Does General Contractors Insurance Cover?

When compiling your insurance portfolio, you must analyze your business’s specific circumstances. Although exact coverage needs may vary, in general, most general contractors should acquire the following coverages:

·        General liability insurance—If your business is responsible for the bodily injuries, property damage or personal and advertising injuries of a third party, this coverage can help pay for losses.

·        Workers’ compensation insurance—If an employee is injured on the job or develops a work-related illness, this coverage can provide financial assistance for health care costs, vocational rehabilitation, lost wages and resulting lawsuits.

·        Tools and equipment insurance—If your business’s tools, equipment or materials are lost, damaged or stolen, this coverage can help repair or replace them.

·        Professional liability insurance—If your business is accused of providing subpar services or products, making a professional error or breaching the terms of a contract, this coverage, also known as errors and omissions insurance, can protect you from damages.

·        Commercial property insurance—This coverage can protect your physical workplace and property used to operate your business, such as your building, furniture, signage and landscaping.

·        Commercial auto insurance—This coverage can insulate your business from financial losses arising from incidents involving motor vehicles.

·        Umbrella insurance—If losses exceed the liability limits of your other insurance policies, this coverage can provide further financial aid.

General contractors should also consider other risks and exposures that may need to be accounted for. Depending on your business’s circumstances, you may need to acquire additional protection, such as the following:

·        Surety bonds

·        Employment practices liability insurance

·        Directors and officers insurance

·        Inland marine insurance

·        Cyber liability insurance

How Much Does General Contractors Insurance Cost?

When providing your business with a quote for adequate general contractors insurance, insurers consider many factors. Like any business, general contractors all have unique situations that can significantly affect premiums. In most cases, Lone Star Insurance will analyze the following aspects of your business:

·        Income and revenue

·        Contracting services offered (e.g., residential, commercial)

·        Company property and equipment

·        Workforce size

·        Prior claims history

In addition to the aforementioned criteria, your business’s specific insurance needs will also have a significant impact on your premiums. The types of insurance included in your portfolio, coverage limits and deductibles all heavily influence your overall costs.

Get the Right Coverage

Regardless of how safe and diligent your business may be, adequate insurance is necessary. General contractors operate with substantial financial investments at stake, and even a slight error or delay could lead to devastating losses. Without suitable coverage, you may be harnessed with paying these damages out of pocket, which could derail your company’s future.

We’re here to make sure that doesn’t happen. At Lone Star Insurance, our experts are well-equipped to assess and understand the coverage needs of general contractors. Through diligent analysis of your business, we will compile an optimal insurance portfolio explicitly tailored to offset your risks and exposures. Contact us today to get started.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.