The Significance Of Acquiring General Contractors Insurance
Ed Sneineh, Chicago General Contractor Insurance Agent
A general contractor is the person, or entity, that oversees the overall activities of a particular project (ie construction project) and coordinates between the individual subcontractors that perform the various activities and tasks of the project (ie plumbers, electricians, masons, roofers, etc.) A general contractor, also known as GC, may be taking part of actual project, or may be a paper contractor, one who does not perform any part of the project.
It is important that every general contractor buys general contractors insurance cover, and not to mix it with the artisan contractor insurance . Having this cover presents them with so many advantages and it is only good that one buys it before taking up any contractual work. This cover really helps a lot when it comes to accidents, property damage and all manner of claims resulting from the negligence of the contractor or the uninsured subcontractor.
Generally, local authorities will not allow these people to handle any work without this coverage. This is just why the must insure they get one prior to taking up the project. This will save them a lot in case issues arising from contract liabilities, lawsuits filled in course of litigation and injuries occur. It is also good, as having it will cause them to save money that they would have otherwise spent on the attorney handling the case.
The easiest way to ensure that one is fully covered is to ensure that any employee or subcontractor hired has liability insurance cover, with similar limits. This is just in case they are faced with lawsuits regarding negligence of the subcontractor. In addition, subcontractors work independently, meaning that they can still hire attorneys to file lawsuits on their behalf.
In many states including Illinois, a general contractor may not be protected from work related injuries of the subcontractors in many instance, even when there is a contract between both parties. A general contractor's best protection is to make sure that all hired subcontractors show workers compensation coverage. It is only fair that people take this into consideration without fail. This is because most if not all contractual projects are very tedious and they can involve a lot to do with heavy manual work. This may include lifting heavy bricks, plumbing and all other forms of work that are involved in such projects. These are manual actions that can result in danger for own workers or workers of subcontractors involved.Often times, contractors are urged not to take projects if they do not have the proper coverage. The contractor must ensure that they are well covered against such eventualities that may come unexpected.
The cover is designed to take care of the many unfortunate eventualities that tend to occur in the course of operations. But sometimes, this may not happen depending on the nature of circumstances leading to the problem including poor workmanship. This may have occurred before or after the work had been finalized.
A general contractor should never hire subcontractors unless they are fully equipped with liability cover policy. This is the only way that the general contractor will pay reduced premiums. On the other hand, the cost of this coverage tends to vary according to the total annual receipts, sum payroll expenditures (including payments to subs), the kind of work being undertaken, amount of needed coverage and risk levels among other factors. The contractor, on top of paying nine successive monthly rates, they will be required to make some down payments prior for the cove.For any contractor to get a better deal, it is imperative that they find time to compare general contractors insurance quotes. The market is full with insurers but they all have different terms and requirements for their policies. The best way is to ensure that one acquires many quotes from different firms and settle on one that is most favorable. One can also acquire an expert independent agent in the field to help with the technicalities of the process. One has to be willing to discuss the requirements with the agent before making any kind of commitment.
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