As a business owner or manager of a commercial contracting company, you have a lot to think about. Your list of to do’s can be daunting. MIG Insurance is here to help. Through a comprehensive review of your business operations, our team can help define your insurance protection program.
We can help maximize the effectiveness of your insurance spend by connecting you to the products that will matter most. Contractor’s insurance includes all the following features that can be customized to your business.
Contractors’ Equipment Insurance (CEF) covers equipment at construction projects and jobsites. This coverage is sometimes called a “floater” because the coverage follows the equipment from one jobsite to the next, as well as while in transit.
Examples of equipment covered include:
Tools insurance covers your hand tools and portable tools when at a jobsite, in transit or while locked in a vehicle or storage. Each item is covered up to $1,500. Examples of tools covered include:
Commercial General Liability (CGL) provides coverage for liability claims arising from bodily injury and property damage to others as a result of your operations. Losses and subsequent claims could be caused by you, your employees, your products, completed operations or by something occurring on your premises.
Your Commercial General Liability policy covers you for bodily injury and property damage to others as a result of your operations. This does not provide any coverage for errors made and the associated costs of making things right for your customer. Two important endorsements can be added to your insurance policy to provide a more complete package of protection specifically for contractors:
This coverage will cover you for any claims resulting from errors made in your work. Basically, any error, omission or negligent act that results in failure of your work to meet specifications after installation and acceptance by your customer will be covered under this endorsement. An example of this would be:
“An HVAC contractor makes an error interpreting plans and installs equipment not to specifications, creating a problem in being able to complete finishing of ceiling components. The HVAC work needs to be redone to comply with plans.”
Another endorsement that will dovetail with Contractors E&O is Rip and Tear Endorsement (also known as Removal and Replacement). This provides coverage for the expense involved in removal and replacement of goods or products supplied by you or the cost of remedial action where removal and replacement can be avoided. In clear language, this protects against error in design, manufacture and blending or mixing of compounds. An example of this would be:
“An error is made in the composition of materials for a poured concrete floor. Within six months, the flooring cracks and crumbles and needs to be replaced.”
You can see how these important coverages work together to ensure there are no gaps or exposures that can cause financial disruption to your business.
Wrap Up Liability is a single insurance policy that names all participants on a project, consolidating additional liability coverage for all involved, including subcontractors. Coverage is extended usually for a period of ten years past the date of completion and will provide coverage for claims arising from construction defects.
Property Insurance ensures the hub of your business, the home base for your crews, is well protected. Contents Insurance provides coverage for your equipment and stock at your shop and office premises. This includes items used to run your business. Examples of contents covered include:
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