A big expense element in a contractor’s construction bid will be the price of the liability insurance for the project. The contractor’s existing general liability policy might not be sufficient to meet the requirements of a particular job being bid for but upping the coverage on his regular liability insurance could leave the contractor in a grossly over-covered position after the job is performed. A per project policy is ideal for construction bid circumstances like this.
Market Traders Insurance is exactly what it reads as. The contractor can get a liability quote for precisely the required amount and for only given that the precise job is underway. This implies the contractor will have the correct amount of insurance at the right time. He will not need too little through the job and will not need too much after the work is completed either. Per project general liability is ideal for a contractor’s general liability.
Two critical factors should be considered when looking into per project insurance. The first is the maximum payable amount and the second reason is the actuarial claim rate.
The individual or more likely the corporation tendering out the bid will stipulate the minimum level of liability insurance requires. Let’s say the mandatory insurable amount is for twenty million dollars. That total coverage could be necessary for the bid but during the general business of the contractor, perhaps ten million is a lot more than sufficient. A per project general liability package could be put in force simply for the term of the contract.
The other factor is the actuarial. This is the incidence of claims for a particular type of application. For example, if the contractor does dangerous work like welding underwater the claim rates are higher than work as an interior painter so the rate per thousand dollars worth of insurance will naturally be greater for the underwater welding. A contractor needing liability insurance may often be quoting for work that is of a different actuarial rate.
Administration of the contractor’s office and his doing quotes involves significantly less risk than completing the contracted work does so per project general liability would certainly be a better value than a global policy that doesn’t address the differing needs.
Per project contractor general liability insurance isn’t a completely new product but it isn’t a policy that most insurance underwriters have not been overly wanting to offer. Insurance agents prefer a long-term deal such as a life insurance coverage that simply has premiums running to eternity and beyond. Per project coverage requires the insurance for only a fixed term and at a set rate. Per project general liability insurance is optimal for the contractor’s insurance and per project general liability insurance can be found, and is obviously worth finding, even if it takes some extra looking.