Contractors Insurance Claims 101: The All-in Guide

​Being in the contracting business requires an immense ability to handle pressure and risk management strategy. Whether you put your best foot to make sure no accident will occur, the nature of the field acknowledges that accidents are inevitable. In this article, we will provide you what you need to know about contractors’ insurance claims.

Design and Build Deficiencies
In case there's something wrong with the design and build part, which you may be at fault, general liability insurance won’t be enough to cover the issue. Usually, general liability insurance doesn't extend its coverage for professional services. So you might want to obtain a professional liability policy to cover your design and build problems. 

Theft
Keep in mind that general liability insurance also doesn't cover losses incurred from theft. Most contractors opt for a builder's risk policy to protect themselves in case tools and equipment in the construction site are lost or stolen. 

Construction Delays
Delays have proven to make a significant negative impact in the construction industry, which isn't a strange circumstance at all. In case of a construction delay, the client can file a claim for reimbursement on the potential losses it may cause. Having a professional liability coverage to your insurance will pay for the reimbursement that your client will pursue. 

Subcontractors
For a win-win situation, it is best to hire subcontractors who have contractors insurance of their own since they are not usually covered by your contractors’ insurance. But that's not the bottom line yet, try to know if they have approximately the same level of coverage as your policy. Luckily, you have all the right to verify an insurance policy of your subcontractor through their insurer. 

Policy Period and Extended Coverage
Note that your contractors’ insurance policy will be immediately activated on the day your policy period has begun. That period will last until the indicated expiration of your system. If you plan to buy extended coverage, your policy period will go beyond the expiration date for 60 days. And if you want to file a claim during that period, your request would still be granted. 

Conclusion
The coverage in your contractors’ insurance requires you an intricate amount of understanding to get familiarized. Taken into consideration, it is for the best of interest to consult an agent that will make you understand the know-how of running your contracting business. 

At Black and Associates Insurance, we put our clients first by offering them policies that they can afford. Having insurance is a necessity nowadays and we're here to help you out. Learn more about our products and services by calling our agency at (509) 464-0058. You can also request a free quote by CLICKING HERE.