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Liability Insurance Coverage

Liability Insurance coverage; its limitation and benefits.


Liability Insurance Coverage

Protect your investment with a Liability Insurance.

By Hanna Ford

Liability Insurance

Liability insurance will protect contractors, home builders and remodelers against injuries, accidents or property damage suffer on the job. While working on construction projects, workers can accidentally damage a property mishandling materials and tools, or while remodeling process is under way.

Common business standards require you to provide evidence of construction liability insurance before repairing or remodeling homes. Sub contractors also are required to present their evidence before entering or starting their participation in a construction job.

Residential Building

This insurance is essential on the home building business, because sometimes homeowners may want to sue contractors for damages occur during the construction process. Or in the event of injury, workers may want to file litigation against the homeowner or contractor. Having good construction liability insurance protects builders from lawsuits or when they suffer loss from unexpected conditions.

Your contract must required every sub to have expedited their own liability insurance and having you exempt of responsibility from any damage that they might produce during the construction progress. The amount of the liability insurance is directly related to the amount of money that the contractor is executing, and it is recommended to have an insurance coverage of two or three times the amount of construction project budgets.

Commercial Contractors

Usually commercial contractors are expected to have multi-million insurance coverage’s, allowing covering any related injury or damage due to the construction. Normally, commercial contractors with higher risk of damages, for example, roofing contractor, or contractors who perform on high specialized trades are the ones with the biggest insurance coverage. Indemnity corporations charge policy holders a modest down payment and monthly fees to finance premiums over six months to a year.

Limits on Liability Insurance

Construction liability insurance has also its limitation. You must set limits per each occurrence and limits for aggregated values. Limitations are also set for fire damage to property under construction as well as medical expenses for injured workers on the jobsite that might not be covered under workers ’ compensation. Covered damages also include liability for personal and advertising injury; that is litigation produced from claims that the contractor's promotional advertising in someway caused the homeowner or other interested party to incur a financial or personal loss. No matter how large or small the job, in the building trades, having adequate insurance against liability is always the best policy.

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