Contractor Insurance – Treiber Insurance

Contractors Insurance

Contractor’s Liability Insurance provides coverage against lawsuits field for Bodily Injury &/or Property Damage alleged against the Contractor. Claims may arise while the contractor is in the course of construction or after the construction is completed. Claims during the course of construction could be a fire caused by the contractor drilling a screw into a gas pipe, or a piece of debris hitting the homeowner or a passer by. Once the job is completed a claim may arise months or years later due to faulty work such as a writer pipe break due to a faulty soldering, electrical fire due to faulty wiring, or water damage due to faulty roofing.

Insurance

Contractors Liability Insurance is essentially categorized into three areas:

Artisan Contractor

Artisans perform work primarily for residential homeowner’s and small business owners. Artisan insurance policies provide Commercial General Liability with the lowest premiums, however certain coverage is not available. Typically there is a limitation for Contractual Liability, Primary and Non Contributory is not available, and Waiver of Subrogation is not available. Since the Artisan insurance policy is designed for dealing directly with the homeowner or small business owner, these coverages are not always needed. Artisan insurance policies typically permit sub contracting up to 15% of gross sales. The sub contracting is usually for the trades that require a license such as Electrical and Plumbing. For added protection all Sub Contractors must have Commercial General Liability limits equal to yours and name you as “Additional Insured.”

Sub Contractors

Sub Contractors perform work primarily for larger General Contractor’s, Commercial Building Owners &/or Management Companies, Municipalities, Cities, Government Agencies, Hospitals, School Districts, etc. Sub Contractor Insurance policies provide Commercial General Liability and typically provide full Contractual Liability, off the Primary and Non Contributory, and Waiver of Subrogation endorsements. Sub Contracting have their own employee labor however Sub Contracting in excess of 15% of sales is acceptable providing the insurance policy includes the proper classification for Sub Contracted work. Typically Sub Contractor policies require that all Subcontractors have Commercial General Liability limits equal to yours and name you as “Additional Insured,” there must be a written contract with all subcontractors which includes an Indemnity/ Hold Harmless clause in your favor.

General Contractors

General Contractors perform work primarily for Commercial Building Owners &/or Management Companies, Municipalities, Cities, Government Agencies, Hospitals, School Districts, etc. Typically General Contractors do not have any employee labor and Sub Contract 100% of the work; many times General Contractor’s are referred to as “Paper GC’s.” General Contractor Insurance policies provide Commercial General Liability with full Contractor Liability, Primary and Non Contributory, and Waiver of Subrogation endorsements. Typically General Contractor policies require that all Sub Contractors have Commercial General Liability limits equal to yours and name you as “Additional Insured,” there must be a written contract with all subcontractors which includes an Indemnity/Hold Harmless clause in your favor.

Insurance detail

Tools and Equipment

Some Contractor Insurance Policies provide limited coverage for Tools and Equipment. Many contractors with few, or inexpensive tools choose not to insure them. However large contractors with expensive and extensive tools and equipment will insure them against fire, theft, and water damage among other perils under Floater Policy.