Advanced Insurance Services

G eneral liability insurance claim example scenario: An electrical contractor with 30 years of experience and zero claims was picked to install the commercial lighting on one of the largest new warehouses in town. Overnight the warehouse burned completely down and the fire was ultimately caused by the electrical contractors work. Because the electrician had gone almost 30 years without a claim or injury he choose to let his general liability insurance policy lapse earlier in the year. His first work related mistake had to be paid out of pocket which included legal cost and extensive property damage. This scenario shows that the warehouse owner should have required and verified coverage and the electrician should not have let his policy lapse while still preforming work.

Property liability insurance claim example: Property damage lawsuit. A remodeling contractor is completing a room addition on a residential property. Unfortunately, one of his (W2) employees (properly classified on his insurance policy) forgets to shut off the water to the kitchen. The water seeps into the floors and the walls of the finished basement that includes a home office and two bedrooms. The homeowner sues them for $190,000 in damages to their house. This is where the minor details. (How many employees, what jobs do they perform, etc.) really come into play. There is no point in purchasing a product that will not cover you in a legitimate claim. Get the details right and you will benefit most from the insurance you purchase.

Residential remodeling contractor requested that their policy limits of $1,000,000 be increased to $2,000,000 in order to land a bid this morning. The previous contractor that originally won the bid could not meet the insurance requirements. Our client was the next bid. He requested the increase via text, we requested the increase and emailed a copy to him within the hour. The increase only cost $58.98 for another $1,000,000 in coverage. . .

Property liability insurance claim example: Property damage lawsuit. A remodeling contractor is completing a room addition on a residential property. Unfortunately, one of his (W2) employees (properly classified on his insurance policy) forgets to shut off the water to the kitchen. The water seeps into the floors and the walls of the finished basement that includes a home office and two bedrooms. The homeowner sues them for $190,000 in damages to their house. This is where the minor details. (How many employees, what jobs do they perform, etc.) really come into play. There is no point in purchasing a product that will not cover you in a legitimate claim. Get the details right and you will benefit most from the insurance you purchase.

Drywall contractors: This applies to most interior finishing (trim, carpentry, drywall, flooring, electrical,etc) contractors too. When applying for commercial insurance it is important to state whether you preform new construction or remodeling only. Some polices will provide up to a 25% discount for remodeling only applications (meaning no work on structures that have not obtained a certificate of occupancy).

Contractors: Remember when obtaining insurance certificates from your insured subcontractors that they carry at least equal coverage and obtain the proof of insurance from their agent. This is very important in the event of an audit. .

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When hiring any outside operation for a service make sure they are insured and provide you with a certificate of insurance (call and verify their coverage, the information to do this is on the insurance certificate under the section labeled "producer"). Examples electricians, handymen, plumbers, the pest guy, drywall, janitorial services, flooring basically anyone you hire to preform a service for you that is not your W2 employee. Make sure that the insurance they carry allows them to perform the work being done. .

Here are some sample contractor general liability insurance policy costs: A-Rated Carrier's with $1,000,000 limits and free additional insureds: 1) NJ Stone & Tile work, 1 Owner & $25K insured sub-cost $715 for the entire year. 2) Texas remodeler, 3 employees, $200k in gross receipts $899 for the entire year. 3)OK Roofer doing new roofing and remodeling, $2,915 for the year. .