A big expense element in a contractor’s construction bid will be the price of the liability insurance for the project. The contractor’s existing general liability policy may not be sufficient to meet the requirements of a particular job being bid for but upping the coverage on his regular liability insurance could leave the contractor in a grossly over-covered position after the job is performed. general liability insurance A per project policy is ideal for construction bid circumstances such as this.
A per project liability insurance coverage is strictly what it reads as. The contractor will get a liability quote for exactly the required amount and for only so long as the precise job is underway. This implies the contractor will have the right amount of insurance at the right time. He will not need too little during the job and will not need too much after the work is finished either. Per project general liability is ideal for a contractor’s general liability.
Two critical factors should be considered when looking at per project insurance. The first is the utmost payable amount and the second is the actuarial claim rate.
The individual or more likely the corporation tendering out the bid will stipulate the minimum level of liability insurance requires. Suppose the required insurable amount is for twenty million dollars. That total coverage could be necessary for the bid but through the general business of the contractor, perhaps ten million is a lot more than sufficient. A per project general liability package could possibly be put in force just for the term of the contract.
The other factor is the actuarial. That is the incidence of claims for a particular type of application. For instance, if the contractor does dangerous work like welding underwater the claim rates are much higher than work as an inside painter therefore the rate per thousand dollars worth of insurance will naturally be greater for the underwater welding. A contractor needing liability insurance may often be quoting for work that is of a different actuarial rate.
Administration of the contractor’s office and his doing quotes involves much less risk than completing the contracted work does so per project general liability would certainly be a better value than a global policy that doesn’t address the differing needs.
Per project contractor general liability insurance isn’t a completely new product but it is not a policy that a lot of insurance underwriters have not been overly wanting to offer. Insurance agents prefer a long-term deal just like a life insurance coverage that simply has premiums running to eternity and beyond. Per project coverage requires the insurance for only a fixed term and at a set rate. Per project general liability insurance is optimal for the contractor’s insurance and per project general liability insurance can be found, and is obviously worth finding, even if it requires some extra looking.