As a contractor, you need liability coverage. Some smaller contractors feel that this type of insurance is prohibitively expensive and they take chances by operating without it. However, accidents can happen. If you leave yourself and your business unprotected, an accident might result with you, your employees, and your client facing devastating consequences. The most cost-effective approach in the long run may be to partner with an insurance broker to create a policy featuring customized liability coverage for general contractors. This policy will be tailored to include precisely what you need -- and nothing that you don’t.

The costs of general liability coverage vary widely, and a number of factors will play into how much you pay. Some of the factors involved are:

·       Company history. If you’ve faced lawsuits in the past, you will pay more for insurance.

·       Location. Contractors in some provinces pay more.

·       Industry. Depending on what sector you work in, you may pay more or less. Contractors with the highest insurance costs are manufacturers, janitorial service providers, and construction contractors.

·       Liability limit. Your insurance will only cover costs to a specific limit. If you want to insure at a higher limit, your policy will cost more.

·       Company size. Larger companies have more employees, more responsibilities, and usually, bigger jobs.

What You Need

Your coverage might include provisions for:

·       Property damage;

·       Bodily injury;

·       Consumer disputes;

·       Completed operations;

·       Property, including tools, vehicles, buildings, equipment;

·       Equipment breakdown;

·       Business interruptions;

·       Theft and vandalism.

Will you need all of these provisions? It depends. You may need fewer protections; you may need more. This is where your insurance broker comes in. Partnering with a broker adds another layer to the process of obtaining insurance, so it seems counter-intuitive if your goal is to save money. However, a good broker will specialize your insurance policy so that you are not paying for unnecessary coverage, and he/she will also work to find you the best price from an insurance company.

Safety First

Another way in which working with a broker can save you money is with safety. Good brokers bring in a safety expert to do a comprehensive risk analysis on your operation. This expert will visit the job site and take note of ways that you can adapt your protocols to avoid or reduce your exposure to risk. Safety experts can help you to make sure that you are complying with occupational health and safety legislation, as well as other government guidelines. They are also knowledgeable about innovations and new products in the safety field. Implementing tighter safety protocols will make your operation more attractive to insurers, and will also make you eligible for lower insurance premiums.

We all hope that we never have to make an insurance claim. But in the case that you do have to file a claim, your broker can help with any questions you have, or any problems you might be experiencing with the process.

Finding the right broker can be key to the process of creating customized insurance that works for you. Contact a brokerage firm today, and get customized liability coverage for general contractors and gain the piece of mind that you need.