INSURANCE COVERAGE FOR CONTRACTORS
International Company.“ And you have to have your working capital lined up so that you can afford the basic coverages.”
King also noted that he encourages contractors to secure an additional layer of excess liability over their general liability. This additional coverage will set them apart from the competition and may not be that expensive: about $ 2,000 for the first $ 1 million in additional coverage.
At the same time, King also recognized that it can often be frustrating for contractors who may be required to meet the upper limits of insurance from primes and municipalities.
“ The primes can also require contractors to buy into their insurance program [ Owner Controlled Insurance Program ] for a
project,” he added.“ This may be in addition to a contractor having to carry their own insurance.”
The consequences of not having insurance and suffering a catastrophic loss are far worse than having to navigate the necessity of paying for insurance, said King.
“ If you do not have insurance or if your insurance is cancelled due to excessive claims, the consequences can be severe,” he said.“ There is a path to correction, but it is not cheap and it could cost you reputationally. Having the right insurance is the responsible thing to do and it will go a long way in protecting your business.”
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Source: JMG Insurance Corp.
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