General liability coverage is an essential aspect of protecting businesses, including general contractors. To ensure they find the right general liability insurance policy, contractors must have a thorough understanding of their risk exposures, business operations, and coverage needs. In this blog post, we will explore key factors that contribute to choosing the right general liability policy that you can share with artisan, small, and midsized contractors as they seek out tailored coverage.
Assessing Business Needs
Every contracting business faces unique risks, and it’s essential to identify and assess these exposures carefully. Some common risks include property damage, bodily injury to third parties, and accidents at job sites. Contractors should consider past incidents, industry trends, and the nature of their services to determine their risk profile accurately.
Once the risk exposures are identified, contractors can work with insurance brokers to tailor their general liability policy to cover these specific risks. Customizing the policy ensures that they have adequate protection where they need it most.
Tailoring Coverage to Address Risk Exposures
Construction and contracting professions encompass a wide range of activities, making them inherently risky. In the event of an accident, your clients could find themselves legally responsible for injuries or damages to third parties.
For this reason, contracting and construction business owners rely on general liability coverage to address their potential liabilities. This insurance policy is specifically crafted to safeguard them in case of lawsuits involving bodily injury, property damage, and product liability/completed operations.
Toward that end, general liability insurance should incorporate sufficient bodily injury coverage for the client’s risk levels. Job site accidents, mistakes in construction, and faulty materials can contribute to injury risks. Ultimately, the right general liability policy will include sufficient coverage for per-instance injury risks for visitors to the site, residents of the property, and others that the contractor does not employ.
Note that contractors must also carefully review the policy exclusions to understand what incidents are not covered by their general liability insurance. Additionally, they should be aware of coverage limitations, such as policy caps, and consider whether they need to supplement their coverage with other insurance types.
Understanding Commodore’s Programs
At Commodore Insurance Services, we understand the unique risks faced by small artisan contractors. That’s why we have tailored our programs to cater to the specific needs of this industry, with comprehensive coverage features that directly address the risks prevalent in the contracting field.
Moreover, providing a premium indication to your clients is quick and easy with our online rater and streamlined application process. With a menu of dozens of construction classifications, brokers can accurately classify their clients’ businesses, ensuring that the policy they choose aligns with their exact line of work. Proper classification is vital, as it helps determine the appropriate level of coverage and ensures that contractors are adequately protected in case of a claim.
Commodore’s commitment to customization means we offer specialized coverage programs for different types of contractors. Whether it’s general contractors, trade contractors, or service trade contractors, our policies are designed to address the specific liability exposures of each class.
Conclusion
Choosing the right general liability policy is a critical decision for contractors of all sizes. By assessing their risk exposures, understanding their business operations, and working with specialized MGA’s like Commodore Insurance Services, contractors can ensure they have the right coverage to protect their business and reputation.
Brokers play a vital role in helping clients navigate through this process as they seek out tailored solutions that address the unique needs of each contractor. With the right general liability policy in place, contractors can focus on their work with confidence, knowing they are well-protected against potential risks and liabilities.
About Commodore
Commodore Insurance Services, Inc. (Commodore) is a California corporation that operates as a Managing General Agency and Program Manager. Since incorporating in 1990, Commodore has developed an expertise in the production and underwriting of insurance products for businesses across the West Coast. Our focus is on providing top-level insurance products to our clients while striving to make it easy to do business for our brokers. Try us and find out why we have continued to be successful for more than 27 years and are recognized as the trusted leader in small business insurance.
