How to File a Builders Risk Insurance Claim

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As a contractor, you know that unexpected incidents like fires, theft, and flooding are hazards of the job. However, an accident like this on a construction site can bring major losses and set your project back weeks … or even months. Worse, all of this could take a serious financial toll.

When damage is incurred on a construction site, your builders risk insurance can help offset the costs and get you back on your feet.

Make sure you know how to file a builders risk claim properly you so that you can get back to work as quickly as possible if an accident happens on your project site.

Everything You Need to Know to File a Builders Risk Insurance Claim

Before you file a builders risk claim, make sure your policy will cover the incident in question. The best way to do this is to review your policy thoroughly. If you’re not sure if the incident in question is covered or not, contact your agent to check.

Take Detailed Notes

When you file your claim, you’ll need to give a detailed description of the incident. Taking notes will help you remember the accident accurately when you’re reporting it.

Make sure you take note of everything you’ll need to know to file your claim, such as:

  • The time and date of the incident
  • Where the incident occurred
  • The names of the parties involved
  • If any witnesses observed the event

Taking photographs or a video of the damage will help you give your insurance company a more detailed idea of what happened. Take photographs from several angles.

Keep copies of your photographs and notes as evidence.

Get Witness Statements

If there were any witnesses to the incident, have them give you a written statement on what happened. Make sure the statements are detailed, and have each witness sign their statement.

Determine Damage Costs

Your builders risk policy provides coverage for the cost to replace damaged property. It can also help pay for damage done to the property itself.

Make a list of the materials and equipment that will need to be replaced or repaired because of the damage. Calculate the costs of these items and any property damages. Your insurance company will compare the costs of the damages to your policy to determine how much you will be compensated.

Make Sure You Have all the Info You Need

When filing a claim, your insurance company will ask you for information such as:

  • Your business’s name and contact information.
  • A detailed description of the event. Make sure you have your notes!
  • The claimant’s information. This is typically the contractor or the property owner.

Act Quickly

Initiate your claim as quickly as you can with your insurance company, it’s the best way to get the help you need. Contact your insurance professional as soon as possible after an incident occurs. At Citizens General, our experienced agents and customer support team are available to help you file your builders risk insurance claim, and answer any questions you have about the claims process.

Accidents can be frustrating and costly, but if you file your claim promptly and make sure you give your insurance agent accurate, detailed information, your builders risk insurance will help you to bounce back from the incident.

Know What Your Builders Risk Insurance Policy Covers

Are you filing the right claim? Builders Risk Insurance protects you from damages caused during construction by accidents that were out of your control, such as:

  • Fire
  • Wind
  • Theft
  • Lightning
  • Hail
  • Explosions
  • Vandalism
  • Flood
  • Earthquake

Keep in mind that there are certain things your builders risk policy may not cover, such as employee or third-party injuries, third-party property damage, or professional negligence. If you’re unsure if an incident is covered by your builders risk policy, just ask us.

Builders Risk Insurance vs Inland Marine

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Builders Risk Insurance vs Inland Marine

There are many different policies to choose from when you’re building the insurance protection that’s right for your construction business. Builders risk and inland marine are both important policies for contractors to consider, but they overlap in one key area: both provide coverage for your tools and equipment.

How should you determine which will work best for you?

What is Builders Risk Insurance?

Builders Risk Insurance, also known as course of construction insurance, protects a project from accidents while construction is being completed. This coverage includes the building materials, supplies, and equipment involved. Builders risk generally protects you from incidents such as:

  • Fire
  • Theft
  • Vandalism
  • Earthquake

Builders risk insurance is frequently written on a short-term basis, ranging from three to twelve months, but these terms can be extended if necessary. Builders risk can also cover the materials used to work on the property while they’re in transit or temporary storage, and this is where it can overlap with inland marine coverage.

What is Inland Marine Insurance?

Inland Marine Insurance covers your tools and equipment while you take them to and from a project site. In the insurance biz, we call this a floater policy. That means the coverage goes wherever you go. Inland marine covers property that is in transit and property in the control of another person, such as:

  • Materials
  • Supplies
  • Tools taken to and from a job site

Inland marine is also known as tools and equipment coverage, and it protects the power tools you transport to and from a worksite, as well as the tractor that one of your employees is using for the day. This is an essential policy for contractors who frequently work on other people’s property.

What’s with the name?

If the term “inland marine” confuses you, you’re not alone. It sounds like something you need to insure a yacht or fishing boat rather than a contractor’s tools. The term is an old one, dating back to the industrial revolution. During that era, goods that had previously been transported by ship began to be moved by train and other land-based transportation. Marine Insurance companies expanded their coverage to offer Inland Marine Insurance for goods moved on land, and the definition of the term has expanded since then to refer to a type of property insurance in transit.

Which Contractor Insurance Policy Will You Need?

The overlap between the two policies can be confusing. Both inland marine and builders risk will cover tools and other property in transit, but for different reasons. Builders risk is intended to cover short or long-term construction projects, whereas inland marine protects your tools on a day-to-day basis.

If you’re a handyman, subcontractor, artisan tradesperson, or part of a small contracting business, inland marine insurance will be an important part of your insurance package. If you only work on a project for a couple days at a time before moving on, then it’s most important that your expensive tools and equipment are insured.

However, If you are a general contractor or project owner, you may need builders risk insurance for the individual projects you work on. In this case, the insurance is protecting the construction project itself and the tools associated with it by extension.

Keep in mind that some builders risk policies only cover damages done to the property itself, and may not cover your tools. Read through your builders risk policy carefully- if it doesn’t cover your equipment, you may need both types of coverage.

While builders risk insurance and inland marine insurance may overlap to cover your tools and equipment, they cover your equipment for different reasons. Builders risk protects your equipment only as part of a particular project site. Inland marine is intended to insure the equipment itself as you take it to and from project sites on a daily basis. If you’re not sure which one will work best for your business, let one of our experienced construction insurance professionals help you decide.

How to Get Your Certificate of Liability Insurance in 3 Easy Steps

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When you work with a client or another third-party, you may be asked for proof of insurance. Potential clients may ask you for proof of insurance for a number of reasons, but generally they want to know what risks you’re insured for, what policies you’re insured with, and that you that have the proper coverage they’re looking for.

What is a Certificate of Insurance?

A certificate of insurance is a summary of your coverage issued by your insurance carrier (or carriers). It is an information summary page showing you have been insured and for which lines of coverage. The document will name you (the insured), the insurance company (or companies, if you have different policies with different carriers) issuing the policy, the type of policy, and the effective period . The certificate won’t list all of your liability coverage and any exceptions in detail, it’s merely intended to provide an overview. A certificate of insurance is the best way to provide proof of insurance and demonstrate that you have the coverage they’re looking for.

Why do you need a Certificate of Insurance?

You may need to provide proof of insurance for a variety of situations, including:

  • When signing a contract with a new client or contractor.
  • When signing a lease for property or equipment.
  • When verifying coverage for a homeowner

This goes in line with the idea that your certificate is your summary of coverage. In order to win the bid or be allowed on the jobsite, you need to show that you’re properly insured should anything bad happen during the project. It also gives peace of mind to individuals that not only can they trust your work, but if something unusual does happen, they won’t be in the poor house making up for it.

This three-step guide can help you get your certificate of insurance to whoever is requesting it promptly.

Step #1: Know the Minimum Requirements

Before requesting a certificate of insurance from your insurance provider, it’s important to understand the motivation behind the request. Certain third-parties may require that you have a certain amount of coverage before they can offer you a job. For example, a business may need you to have a liability policy limit of $1,000,000 before signing a contract with you to remodel a large commercial building. Get the minimum requirements in writing so that you know what you need for the job.

Step #2: Know What Your Liability Insurance Covers

If you’re concerned about whether or not you meet the minimum insurance requirements set by the third-party in question, review your policies or contact your insurance agent. You’ll want to make sure you have all of the coverage you need, and that your policy limits meet the requirements. If you don’t have the required coverage, you’ll have to decide if it’s worth expanding your insurance for the job. If you do decide to purchase more coverage, the first step is to contact your insurance agent to discuss your options.

Step #3: Request Your Certificate of Insurance

Once you understand the minimum requirements and are sure you meet them, here’s how to get a certificate of insurance. Contact your insurance agent and provide the individual or company needing to be listed as certificate holder, as well as their address, insurance requirements, and any contact information. Your agent will be able to review the information, make sure you meet the coverage requirements. If everything checks out, you should be able to get the certificate fairly quickly. At Citizens General, we can issue your certificate the same day if you get your request in before 2PM PST. The easiest way to submit you request is through our certificate request page.

To dive a little deeper, you’ll need to provide your insurance company with certain information about yourself (the insured) so they can confirm your coverage and the third-party (the certificate holder).

  • Your contact information
  • Your policy number
  • The certificate holder’s name
  • The certificate holder’s contact information, including their address, fax, and/or email
  • The information of any other individuals or companies that need to be listed on the certificate
  • The job site and project information
  • A copy of the insurance requirements or contract, if available

At some point, you’ll need to provide a client or another third-party with proof of insurance. When that happens, a certificate of insurance is the best way for you to prove that you’re insured and have the coverage you say you do. At Citizens, we make sure you can get your certificate of insurance quickly and easily, so you can get to work with no delay.

7 Things Not Covered by Your Builders Risk Insurance

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When you’re breaking ground on a new construction project, you know that your builders risk insurance has your back. They don’t call it “all-risk” coverage for nothing… there’s a pretty good chance your policy can cover almost any accident that may arise while you’re working on your project.

A windstorm causes the project to collapse? Covered.

A fire from the neighboring property spreads to your construction site? Covered.

Some kids sneak in and steal your tools? Covered.

However, just because this policy is broad doesn’t mean it covers absolutely everything. Every insurance policy has limits. It’s important to be familiar with the specifics of your builders risk coverage, and to know what is and isn’t covered.

7 Things Not Covered by Your Builders Risk Insurance

Your builders risk policy may cover a lot, but you may be surprised to learn the following things may still leave you exposed.

#1: Your Tools and Equipment

We know what you’re thinking- didn’t we just say that builders risk insurance covers your tools?

Well, they may or may not be covered. It’s important to know how your tools are protected under this policy so you know what gaps you might have in your coverage.

Every builders risk insurance policy is different. Tools and equipment are one exception that can vary enormously from policy to policy. Most builders risk policies cover your tools and equipment while they’re on the job site or in transit.

However, some policies might not include expensive equipment such as bulldozers or ditch diggers. Others might not cover tools and equipment at all. Furthermore, while your equipment may be covered, the equipment belonging to your subcontractors might not be.

Read through your policy carefully so you know which of your equipment is covered. If your tools aren’t covered, you may need to add an additional equipment floater to your coverage, such as inland marine insurance.

#2: Flawed Workmanship

Builders risk insurance is designed to cover accidents.

But what happens if an accident on the project site is your fault? Depending on your policy, if you or one of the other insured parties are found to be at-fault for an incident, builders risk might not cover it.

Picture this:

You come to work one morning to find that an entire section of the home you were constructing has collapsed. Upon further inspection, it turns out that there was a miscalculation. The support beams you were using weren’t strong enough to support that kind of weight.

While most builders risk policies cover incidents such as collapse when they’re accidental, this collapse would be due to a design error. And there’s a chance your policy may not cover it.

In the event of claims related to faulty workmanship, it’s important to know what your contractor insurance policies cover, and what they don’t. If your builders risk policy includes a faulty workmanship exclusion, you may need additional insurance coverage to protect you from this specific risk.

For many contractors, the best answer to this situation is adding a Faulty Workmanship endorsement to your general liability policy to cover third-party property damage arising from your work.

#3: Employee Theft

Employee theft is another frequent exception to builders risk policies. Most builders risk policies cover incidents such as theft and vandalism. However, it’s important to remember that your policy typically only protects you if the theft or vandalism is caused by a third party.

Imagine this:

You’ve hired a new guy, and while you don’t know him well, he does good work. As time wears on, however, things start to go missing. Hammers, building materials, maybe an expensive power saw. You suspect he might have something to do with it, but your insurance covers theft, right?

Not always.

If you, one of your employees, or another party insured under your policy is the source of the loss, your insurance policy may not be able to cover it.

The best way to prevent loss due to employee theft or vandalism is to make sure you only hire qualified employees and subcontractors, and run background checks on the people you hire.

#4:Your Vehicle

While your builders risk insurance may cover your tools and equipment while they’re in transit, it probably won’t cover your work vehicle.

If one of your employees gets in an accident on the way to the job site while driving a company vehicle, or you accidentally back your work truck into a concrete support beam and dent it, you’ll need additional coverage to make sure you don’t suffer a financial loss.

Don’t forget to add a commercial auto policy to your contractor insurance.

#5: Soft Costs

When you purchase your builders risk insurance, you’ll want to read through your policy carefully to see if soft costs are included.

A soft cost is money you lose during the time it takes to move forward with your project after an accident. Soft costs may include:

  • Insurance premiums
  • Legal fees
  • Construction loan interest
  • Equipment rentals

Some policies will include soft costs, and some might not. If you discover that your builders risk insurance doesn’t cover soft costs, consult with your insurance agent about adding supplemental coverage.

#6: Earthquakes and Flooding

Builders risk insurance is designed to protect your project from accidents that are out of your control. This includes third-party damage and natural damage from disasters such as:

  • Fire
  • Lightning
  • Windstorms

However, it doesn’t always cover every disaster. Earthquakes and floods are frequently listed as exceptions on most builders risk policies.

If you know you’re working in an area where you have a high risk of a particular type of disaster, you may need to add supplemental coverage to your builders risk policy to cover it. If you work in San Francisco, earthquake coverage is a must. If you’re in a floodplain, you need flood insurance.

Read through your policy, and if these disasters aren’t included, ask your insurance company about adding supplemental earthquake or flood insurance to your policy.

#7: Nuclear Accidents

Finally, extreme man-made events are frequently listed as exceptions on builders risk policies.

This includes incidents such as:

  • Nuclear accidents
  • Acts of war
  • Acts of terror

The damage caused from these events is frequently very expensive, so your insurance company may not be able to cover it.

If you are working on a high-profile construction project and have reason to believe that these events may be risks for your project, look into specialized insurance to supplement your coverage.

Every insurance policy is different. It’s important to read through yours, especially the exceptions, to make sure you understand which risks are covered and which aren’t.

If an accident happens that your policy doesn’t cover, the costs can add up quickly. Reading through your policy carefully before you buy it, and making sure you have any supplemental coverage you might need, is the best way to make sure you’re adequately insured.

Why a Lapse in Construction Insurance is Bad Business

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A smart business owner or independent contractor is always watching his bottom line.

You may be a newly established small business, or an industry expert with many years of experience. Either way, construction insurance coverage is equally important to businesses of all sizes.

Insurance coverage lapses can happen for a lot of reasons

  • Late payments
  • Intentional cancellation
  • To lower costs during a slow season

But before you consider letting one or more of your policies lapse, there is something you should know.

A lapse in insurance coverage can have big consequences for your business.

To put it simply, a lapse of coverage can be bad news.

Let’s look at the ways it can cost you big if you let go of one of your construction insurance policies.

Accidents Can Still Happen

Here is a common myth about your general liability coverage: “My policy will cover claims from work I’ve completed for up to 3 or 10 years.”

This is a misconception that could cost you big.

If a third-party experiences injury, or property damage, as a result of your work, your insurance will only cover it if it has occurred during the policy period. A claim may still be filed after the policy period, but if the injury or damage didn’t occur while the policy is in force, you’re stuck with the bill.

When an accident happens the day after you’ve let your coverage lapse, you will be the one paying the price.

Lapses Don’t Really Save You Money

So you let some coverage lapse during the slow season, and now business has picked up and you are ready to protect it again.

But this time, it may not be so easy.

When you show a history of lapses in coverage, it can become difficult to find someone who will write you a new policy at the same rate as before. The agents and underwriters who review your file begin to see your company as a risk.

You may find yourself with fewer options, and much higher premiums.

As a matter of fact, a lapse in your construction insurance can cost you much more in the long term. Commonly, cancelling coverage doesn’t get you a refund in your fees. Getting insured the next time could be difficult and cost you even more in premiums since you forego any continued policy discounts. You even run a risk of not being able to get coverage at all. And someone could still get injured and bring a lawsuit your way.

The best way to watch your bottom line and put more cash into your business is to lower your rates on your contractor’s insurance, not to let it lapse.

How to Combat a Lapse in Coverage

Let’s face it, things happen. Payments get missed. Renewal dates pass us by. It’s a fact of life.

But that doesn’t necessarily mean you’re left out to dry.

The best way to reduce expose is to ask for the carrier to remove the “prior work exclusion” endorsement. If you’ve done work during a period of lapse, or even if you’re switching between carriers, this is the best way to make sure that prior work is still covered.

5 Tips to Avoid Handyman Insurance Claims

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Want to lower the costs of your handyman insurance? Here’s a major tip: Your insurance carrier will most likely lower your premiums the longer you go without filing a claim. Call it a reward for risk prevention, a no claims bonus, or a no claims discount, but the bottom line — no matter what you you call it– is this: safety pays.

And if you can keep claims from occurring, you may end up saving a nice chunk of change to reinvest back into your handyman business.

Avoid Handyman Insurance Claims with these 5 Tips

Here are some additional ways to avoid handyman insurance claims, keep your premiums affordable, and put even more cash back into the coffer.

Tip #1: Safety First

It should come as no surprise that making safety your #1 priority tops our list of “handy” tips. If you focus on safety while performing repairs and maintenance at your client’s homes or places of business, you can reduce the risk of third-party injuries. In other words, you can reduce the likelihood of a general liability claim.

  • Don’t leave power tools and other hazardous equipment unattended.
  • Be careful with ladders, cords, and other tripping hazards.
  • Secure objects that could fall and injure someone.
  • Clean up spills immediately.

Creating a safe work space is essential to reducing the risk of an injury to someone while you work.

Tip #2: Handle Customer Property with Care

Damaging someone else’s property is more than just bad business, it could also lead to a general liability claim. But when you work inside other people’s homes for a living, the risk of damaging their property increases. When you are doing repair work or maintenance on someone else’s property (including appliances, furniture, or personal items), be sure to use utmost of care.

  • Take pictures and/ or make note of condition of items before you begin work and after work is completed.
  • Protect customer property in your work area: use tarps, drop cloths, move items safely away, etc.

Go ahead and lay down the drop cloth before you begin painting. Use a dolly to move a heavy piece of furniture, rather than sliding it across a hardwood floor. Cover furniture in a room to keep dust and dirt from settling on it. Going the extra mile in protecting your client’s appliances, furniture, and homes from potential damage can be the key to avoiding a general liability claim for property damage.

Tip #3: Hang Up and Drive

You spend enough time in your work truck that you could officially call it your office. But that doesn’t mean you should be taking calls, sending texts, setting appointments, or reading emails while you are behind the wheel. Distracted driving triples your risk of getting into a car crash.

Save the text, email, and phone calls for when you are parked and the engine is off. Safe driving habits not only save lives, they may also help you avoid commercial auto claims and lower your insurance premiums.

Tip #4: Increase Deductibles

For most insurance policies, you can reduce your premium amounts by increasing your deductibles. That means you save more money each month, but have a higher amount to pay out of pocket before your insurance kicks in when you do have to file a claim.

How does this help you avoid claims in the first place?

  • Take the extra money you save on monthly (or annual) premiums, and set it aside in a savings account.
  • Use the money you have saved for small incidents, rather than filing a claim for something you can afford to pay out of pocket.
  • If you do have to file a claim, use the money you’ve saved on premiums to go towards your higher deductible amount.

Cash on hand doesn’t take the place of insurance protection. But it can help you avoid smaller claims. If you can afford to pay out of pocket for a small incident, it may benefit you. And if you have a large claim that does need to go through your insurance, saving the money you’ve saved on premium payments can help you pay a larger deductible amount.

Insider Tip: The right deductible amount for your handyman insurance is the one you can afford. Before you increase your deductible amounts, it’s a good idea to have enough cash on hand to meet your deductible payment. If you can’t afford higher deductibles, it doesn’t necessarily make sense to increase them.

Tip #5: Communicate Often

Call, text, email, private message, send a pigeon. In other words, communicate. Studies have found that increased communication between doctors and patients leads to less malpractice lawsuits. What does that have to do with your handyman business? Customers and clients who feel like they have been effectively communicated with are more likely to be satisfied with their service. (And less likely to take you to court for an actual — or alleged — mistake.)

The more you communicate with your clients, the more valued they will feel.

Not only that, but more communication will also reduce the risk of a mistake happening. Your client may have asked you to redirect a light switch to one wall when they really meant another. Having one more conversation about it may clear up the confusion… and leave you with a very satisfied client. Unhappy clients can lead to professional negligence lawsuits, and a claim against your professional liability policy. Communication may be the key to avoiding that scenario from happening in the first place.

You can’t always avoid an accident, and you may not always be able to avoid a claim. But you can take steps to reduce the risk of a claim happening. If you do, your diligence will most likely be rewarded. Less claims means lower premiums… and more cash in hand for you to grow your handyman business.

Who Should Be Included on a Builders Risk Insurance Policy?

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Builders risk insurance (aka course of construction insurance) is designed to protect your construction project from a wide range of accidents, so by nature its coverage is very broad. How broad? If you’re wondering what’s covered by a builders risk policy, it may be easier to ask who and what it doesn’t cover than what it does.

Builders Risk will protect a home you’re building or remodeling and the tools associated with that project from incidents such as:

  • Lightning
  • Theft
  • Explosions
  • Fire

The list above includes just a few examples of the policy’s coverage. Your policy will be designed specifically to fit your construction project and the risks it faces.

Now that you know a bit more about what your course of construction policy covers, it’s time to discuss the key people who should be covered, too.

The Four Parties Your Builders Risk Insurance Needs To Cover

Because builders risk insurance covers such a broad range of events, it’s important to make sure that all parties with an investment in the project are listed as insureds in your policy. Make sure these key players aren’t left out of your insurance coverage.

The General Contractor

The general contractor should be the first name you look for on the insurance policy under “insureds”. As the general contractor, you’re the one overseeing the project, and your construction business is getting the job done, so you’re one of the parties at the greatest risk for loss should an accident occur. A builders risk policy is written with your interests in mind, which means it will probably cover both the property and the equipment associated with the project.

The general contractor is one of the two parties who may be purchasing the policy and paying for deductibles that arise.

The Property Owner or Developer

If the general contractor isn’t the one to purchase the project’s course of construction insurance, then the property owner will do it. The property owner has a vested interest in making sure the project they’re paying for goes off without a hitch, and is at risk for financial loss if something goes wrong. If the contractor isn’t adequately insured, then the prices of any damages incurred may fall to the property owner.

The Subcontractors

If any subcontractors are working on this project, it’s important that they be listed on the policy too. You may need to delegate certain tasks that you and your employees cannot or are not qualified to perform to subcontractors. Your subs could include parties such as a third-party roofing company, or a third-party plumber. Accidents can happen involving the elements of the job they’re responsible for. For example, if a flood or fire ruins the roofing material for the project, you’ll need your builders risk policy to cover your subcontractor’s supplies as well as your own.

The Bank

If there was a loan issued for your construction project, consider including the bank that issued it on your course of construction policy as an insured party. In this case, because the bank has loaned you money for the project, they are at risk of a loss if something goes wrong. The financial institution should be listed in the policy as a mortgagee, and covered under a mortgagee provision or designation of mortgagee.

Who Should Be Left Out?

While any party with a financial interest in the construction project should be included under the policy, there are parties without insurable interest who are typically left out. A party without insurable interest is one who doesn’t benefit financially from the continued existence of the property in question, for example, a party who has been paid up front. These parties may include suppliers of materials, or architects.

Builders risk insurance is designed to protect a construction project, and all parties invested in it, from financial loss because of an accident. It’s important that anyone at risk of losing money should the worst happen be covered under your course of construction policy. Accidents can happen to anyone, so make sure your construction project is protected from an accident that’s out of your control.

13 Things You Never Knew About Handyman Insurance

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Most homeowners will need a handyman at some point. You’re a jack of all trades, highly skilled in many different aspects of home maintenance. From fixing rickety stairs and porch railings to repairing leaky toilets, your job can take you into a wide array of risky situations.

Because you face risk on a daily basis, it’s important to make sure your business is safe in case you have an accident. That’s where handyman insurance comes into play.

The right insurance can keep your business safe from lawsuits and damages that may otherwise leave your business bankrupt.

It can be challenging to decide what coverage your small business needs if you’re new to the realm of handyman insurance.

There are a lot of questions to ask yourself when purchasing insurance:

  • Does your state require you to be insured?
  • How much will it cost?
  • What policies do you need?

These handyman insurance facts can help answer your questions so that you get the coverage you need.

13 Things You Never Knew About Handyman Insurance

  1. Handyman insurance is actually a bundle of different insurance policies, such as general liability and commercial auto insurance. By combining different types of coverage, your insurance protects exactly what you need it to.
  2. Being insured can open doors. Many companies offering large contracts will require the contractors and handymen who bid on them to have general liability insurance. Some private homeowners may require you to have handyman insurance as well.
  3. If you use your own truck for work, your personal auto insurance might not cover an accident that happens while you’re on the clock. You may need an additional commercial auto insurance policy.
  4. Did you know that a slip-and-fall lawsuit can cost up to tens of thousands of dollars? Your general liability insurance protects you from accidents involving a third party- and as a handyman you face many hazards that can lead to an accident. It only takes a second for a tool that’s left out to become a tripping hazard.
  5. General liability insurance typically doesn’t cover claims related to your professional services- it only covers accidents. You’ll need professional liability insurance to cover errors and omissions when you’re at fault.
  6. Inland marine insurance is a bit of a misnomer- it actually has nothing to do with boats! It was originally designed to protect goods shipped over land, but it can be an invaluable way of protecting your tools and construction equipment. This policy covers your tools while they’re in transit or being stored at your home or jobsite.
  7. If you advertise yourself as “insured”, the state of California requires you to specify what type of coverage you carry. Make sure you’re familiar with advertising laws in your state.
  8. In fact, your state may require you to tell your customers whether or not you’re insured. For example, California requires all licensed general contractors to inform their customers, in writing, whether or not they’re insured.
  9. Handyman insurance doesn’t have to break the bank. By bundling your policies together and purchasing them all from one specialist broker, you can save money on your monthly premiums.
  10. You can factor your insurance premiums into your pricing. Charging an extra $1 per hour can offset the cost of having insurance. Being insured makes you a safer choice for your customers to work with, and many people will be willing to pay for the extra peace-of-mind.
  11. Did you know that filing more claims raises the odds that your rates will go up? Having a good risk management plan can help you avoid filing claims and save money.
  12. Letting your coverage lapse can make handyman insurance more expensive in the long run. You could be held liable for any accidents that happen while you’re uninsured. Even worse, if you have a history of letting your coverage lapse it could be hard to get a broker to insure you at an affordable rate.
  13. Most states require businesses with even just one employee to carry workers’ comp insurance. As a handyman, you most likely work alone, but if you need to hire an employee make sure you know what your state’s laws are.

You invest a lot in your business. Taking the right safety precautions is an important part of that investment. You wear a hardhat when you’re on the job, keep your workspace clean, and make sure you have the qualifications to complete the jobs you take on. All of this keeps you and your customers safe.

Handyman insurance is just another basic safety precaution to safeguard your business.

Lawsuits and financial damages can add up fast. By thinking ahead and getting the coverage you need, you can make sure a small accident doesn’t turn into a disaster.

What is Contractor Pollution Liability Insurance?

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How often do you hear about a major corporation in hot water because of an environmental mishap? It happens all of the time, usually played out for all the world to see with national news coverage. But a pollution event doesn’t have to be as big as a giant oil spill into the ocean to have devastating effects on a business.

Sometimes, something as small as site runoff after a heavy rain could be just as damaging to a company’s profits and reputation.

Which is why pollution coverage is quickly becoming a can’t-miss policy for almost every contractor in the construction industry. Think you don’t need this coverage for your business?

You may want to keep reading…

Because what you don’t know about contractor pollution insurance could cost you.

What is Contractor Pollution Liability Insurance?

Let’s take a closer look at this policy. Contractor pollution liability insurance (CPL) provides coverage for third-party injury, property damage, defense, and clean-up as a result of pollution conditions which arise on behalf of your contracting operations.

The CPL policy (also known as environmental liability) protects contractors against pollution conditions caused by their work, as well as work performed by subcontractors on their behalf.

“Isn’t third-party stuff covered by my general liability policy?”

If you’re like many contractors, you may assume that your general liability policy covers pretty much every third-party injury or property damage claim that may come your way. But general liability policies typically contain a pollution exclusion which excludes bodily injury or property damage arising from the release of a pollutant.

Almost as importantly, your general liability policy doesn’t cover the costs of clean-up or remediation, which could be the most costly part of a pollution event.

What is a Pollutant?

If you don’t handle toxic waste, you may think you’re in the clear. But in insurance terms, a pollutant is defined as:

Pollutant
“An irritant or contaminant, whether in solid, liquid, or gaseous form, including — when they can be regarded as an irritant or contaminant — smoke, vapor, soot, fumes, acids, alkalis, chemicals, and waste.”

Paint fumes. Mold. Asbestos. Welding fumes. Bacteria. You may be surprised how often a contractor runs the risk of releasing contaminants while performing their work.

“It Happened to Me.” Real Life Examples of CPL Claims

Check out these real life claims examples to see how contractors were impacted by pollution events they never saw coming.

Drywall contractor: When a drywall contractor was hanging new drywall for a new construction project, he didn’t realize his employee accidentally drilled through a small water pipe. All it takes is 36 hours for mold to grow once water leaks, and substantial mold grew between the walls before anyone noticed. That one small accident by the drywall contractor’s employee, one hole in a small pipe, led to a big claim. He was held responsible for third-party injury claims from mold exposure, in addition to the costs of cleanup.

Electrical contractor: An electrical contractor was using a hole saw to cut through a ceiling while installing new electrical lines in a historic building. Unfortunately, he disturbed and released asbestos-containing insulation material with his saw. The contractor was responsible for the costs of cleanup throughout the entire building.

General contractor: A general contractor completed construction of a new school, but two years later received news that a faulty window system was letting water into the building. Mold was discovered, and faulty installation was determined to be part of the issue. The subcontractor who installed the windows was no longer in business, so the general contractor and the window manufacturer were both held responsible. In this situation, the general contractor did not have pollution coverage and had to pay over $900,000 for the incident.

HVAC contractor: When an HVAC contractor installed a new system in an office building, he didn’t realize the ducts had been improperly sealed. Once office employees began to get sick, it was discovered that the improperly sealed ducts had let condensation build up, and legionella bacteria had been sent airborne throughout the office. The employees brought a lawsuit against the contractor and property owner.

Plumbing contractor: A plumbing contractor installed a lawn sprinkler system without adequate vacuum breakers on the discharge side of the water supply valves. The result was back-siphonage of stagnant lawn water contaminating the drinking water supply. When several people drank the water and contracted dysentery, the plumbing contractor was faced with a lawsuit which included the costs of investigating the issue.

In the examples above, pollution coverage protected almost every contractor from the high costs of investigations, bodily injury, pollutant clean-ups, and lawsuits. Unfortunately for the contractor who didn’t have coverage, the out-of-pocket costs of one single incident totaled almost a million dollars.

Who Needs Contractor Pollution Liability?

All construction operations have the potential for triggering an environmental incident. Which is why environmental liability coverage is available to any type of contractor performing operations or conducting work, from general contractors to specialty trades.

Some contractors may face higher than average risks for pollution events, however, such as mold, asbestos, silica, and other contaminants.

Contractors who perform work in some of the following areas are strongly encouraged to learn more about CPL coverage:

  • Abatement and remediation
  • Above/below ground storage tanks
  • Demolition
  • Electrical, HVAC and mechanical
  • General contractors
  • Grading, site, and excavation
  • Industrial and pipeline
  • Maintenance
  • Roofing
  • Sewer, waste and utility
  • Street and road

What Else Do I Need to Know about Pollution Coverage?

Pollution liability coverage can be offered on a project basis or as a blanket program. A project policy will provide coverage for operations performed during the construction period, and can include “tail” coverage for an extended reporting period.

A blanket program will cover all defined operations which take place during the policy term.

No one plans on releasing a pollutant such as mold, bacteria, or asbestos while performing their construction operations. But if you do run across a mishap, the cost could be huge. Investigations as to the cause of mystery illnesses, medical expenses, lawsuits, cleanup of the area, and even reputational damage could cost you more than financial losses. It could be devastating to your business reputation, as well.

Don’t let a single mishap lead to the ruin of your contractor business. Protect yourself with pollution liability coverage, instead.

Contractor Bonds 101: How Bonds Help Grow Your Business

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Contractor bonds are a must-have if you want to do business in the construction industry. And if you think you only need a bond for a major public project, you are mistaken. Whether you specialize in the private or public sector, contractor bonds are an important part of building a sturdy business.

Surety Bonds: The Basics

A surety bond is an agreement that you will fulfill your contractual duties. If you fail to perform your duties as contracted, then the surety company who issues the bond will compensate the project owner so they can find another contractor, and don’t suffer financial losses.

The Benefits of being Bonded

When you are bonded, you demonstrate to potential customers that you are a contractor with a track record of doing things right and fulfilling your obligations. You can promise your customers that you guarantee to do your job correctly all day, but a bond is guarantee that backs up your promise.

Certain bonds are required by the state if you want to do business, and others may be required for a certain project. Whether they are required or not, all bonds make you a more desirable candidate to homeowners and project owners.

Types of Contractor Bonds

Here are the bonds that will help you grow your business, and the individual benefits you get from each.

License Bonds

Contractor license bonds provide a guarantee to the state that you will follow the law and not violate the rules and regulations of your contractors license. Most states require you to carry a license bond if you want to do any kind of business.

Bid Bonds

Contractor bid bonds provide a guarantee to a project owner that you will honor your bid if they select you for the project. Contractor bids bonds can help limit the bidders on a project to only the most responsible and qualified, which benefits both the project owner and the contractors who want the project.

Performance bonds

Contractor performance bonds provide a guarantee that you will complete the project according to the contract. You guarantee to follow the plans and finish the job. If you fail to perform as contracted, the project owner can file a claim and replace you with another contractor who will. When you carry a performance bond, homeowners and project owners know they can count on you to do what the contract says.

Payment bonds

Contractor payment bonds provide a guarantee that you will pay your material suppliers, subcontractors, and laborers. A payment bond protects the project owner from facing liens on the property, or having to foot the bill for unpaid labor and materials.

A payment bond makes subcontractors and suppliers more likely to work with you, knowing there is a guarantee that they will get paid on time. The benefits of a payment bond also protect your reputation in the industry if the unthinkable happens and you can’t make the payments you owe.

Don’t limit yourself to a state-required license bond. When you are fully bonded, you are ready to take on any project. You stand above the un-bonded competition, and get to bid on the best projects. Vendors, suppliers, and subcontractors are more than willing to work with you, and best of all, you have a guarantee that backs up your promise of excellence. Contractor bonds are a simple tool that can take your construction business to the next level.