General contracting a project is a complex task, as a general contractor you are responsible for whatever occurs on a job site. As if that is not enough risk to undertake, if the quality of work completed is unacceptable, you are also responsible. Each job you win brings in extra money but it also brings extra risk. The same policy that protected you for a one-man project may not protect you during your new multi-year commercial deal.

You know that insurance is vital to all aspects of your business as a contractor–it can literally keep you in business when accidents occur.

The list of coverage areas that need to be addressed in your Contractors Insurance include:

• Liability
• Workers Compensation
• Bonds
• Disability
• Trucks and other commercial vehicles

If your Contractor Insurance misses any one aspect of this protection, your job and your company will be at risk.

A client who is a general contractor was building a home in a subdivision in the Northwest suburbs of Chicago. He used a sub-contractor to assist with the painting of the interior of the house; unbeknownst to our client the same sub-contractor was also working on a home being built across the street by a different company. One day the sub-contractor was working on the other home and he fell off a ladder and broke his leg. Our insured was surprised when he was named in a lawsuit by the sub-contracted painter who was claiming that he was injured while working for our clients company. Our client had to fight the sub-contractor’s claim and ultimately prevailed. Luckily our client was properly covered and the legal costs were paid under the Contractors Insurance policy that we had placed for him. Otherwise he would have had to pay all of the costs of defense out of his own pocket.

One other coverage commonly overlooked and not included in general liability policies for general contractors is Inland Marine. Commercial Inland Marine covers property that cannot be confined to a fixed location. These inland marine floaters can cover property in transit, tools and equipment, property under construction, legal liability for bailees, musical instruments, fine arts and electronic data processing equipment.

Common Coverages:

• Property
• Commercial General Liability
• Completed Operations
• Inland Marine: Mobile Equipment
• Inland Marine: Installation Floater

At Northwest Insurance Brokers we represent a number of carriers that have specialized programs for general contractors. Help ensure your general contracting business is properly insured, let us worry about the risk and you take care of completing the job!

Contact Northwest Insurance Brokers if you would like to have your current General Contractors policy reviewed, or if you need a policy placed for you.