Affordable liability insurance for General Contractors that are not making high revenue

      During the boom of the real estate and the construction industries, the General Contractors (GC) made high revenue. At that time they paid high premiums for the liability insurance.    However,   due to the Economic down turn their income has shrunk to minimum levels. As a result, some of them had already shut down; while other have been working in repairs and remodeling. 

         In this new scenario, the firms that are still on the market have been challenged by the carriers because most of them offered unaffordable policies during the last two years.  Also, GCs could not meet the insurance companies’ requirements such as payroll, percentage of contractors, and percentage of subcontractors.

         Fortunately, this scenario has been changed recently and some carriers are offering the following three alternatives to CGs that do repairs, remodeling and maintenance:

1.     Occurrence with Contractors Special Condition

Full Occurrence is for the contractor that wants the protection of an occurrence policy with no sunset provision. Eligible contractor will use fully insured subcontractors, is held harmless and named as an additional insured by the subcontractors, and maintains records of same for 5 years plus.

       2.   Occurrence with Sunset Clause

It is an appropriated alternative for the contractor that will use insured or uninsured subcontractors.  It is applicable with a sunset provision to the occurrence policy provides adequate coverage length for his business.

      3. Claims Made

This option offers coverage to GCs with option to purchase an extended reporting period of unlimited duration for no more than 200% of the last annual premium.

The premiums for the above-mentioned policies are on the range from $1200 to

$ 1600.The payroll could be from $ 16000 to $ 25000. The minimum revenue should be at least $ 60000 per year.

If you are a General Contractor and is looking for affordable liability insurance please contact the Road Runner Program for business at www.es-insurance.com.

Also, send an email at: nef@es-insurance.com for a free consultation.