Does Your Builders Risk Insurance Cover Your Subs?

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When you’re working on a project, you want to make sure it’s protected from a wide range of risks, from fires, theft, and even… subcontractors. After all, an unexpected event could come from anywhere and anyone. Which is why you made sure to get a builders risk policy in the first place.

What Builders Risk Insurance Does (and Doesn’t) Cover

Builders Risk Insurance covers damage to property under construction in the event of an accident, such as:

  • Fire
  • Flood
  • Theft
  • Vandalism
  • Explosions

This policy is designed to cover a single construction project, so coverage is typically offered on a short-term basis, ranging from 3 months to 12 months depending on the length of your project. It doesn’t cover pre-existing properties.

It does protect property under construction and the tools and equipment associated with that construction. In other words, a Builders Risk policy won’t cover a home you’re repairing, but it will cover one you’re building.

Because damages to construction sites can be expensive, it’s important to make sure that everyone who is financially invested in the project is covered on your builders risk policy- including your subcontractors.

How A Construction Contract Protects Your Subs

“Read your contract.” In the construction world and the insurance world, this is kind of the golden rule.

Builders risk insurance is designed to meet the insurance requirements specified in the contract for the project in question. The construction contract will specify which parties should be included in the builders risk insurance policy by listing them as “insureds” or “additional named insureds”. However, which parties are listed as insureds can vary from project to project.

Make sure the insurance requirements for your project include your subcontractors before you obtain your policy.

Keep in mind that your insurance company may not agree to cover all of the parties listed in the contract. Typical exclusions include:

  • Architects
  • Engineers
  • Material Suppliers

Because not all insurance underwriters will include all parties named in your construction contract, it’s important to understand your policy coverage before you commit to it.

Review Your Builders Risk Policy

If you already have builders risk insurance or are looking to purchase, the best way to make sure your subcontractors are covered is to review your insurance policy. No two policies are identical, so what events your policy covers and who the insureds are may vary from company to company and project to project.

A builders risk policy is typically purchased either by the general contractor or the owner/developer associated with the project. The insured parties listed in the policy should include:

  • The project owner
  • The general contractor(s)
  • The subcontractors

The project bid and contract should make clear who is responsible for obtaining the policy, and who will pay the deductibles. It’s important to make sure that all of the insureds above are listed in the policy so that everyone with an interest in the project is covered.

What To Do If Your Subs Aren’t Covered

Your builders risk policy should cover your subcontractors, and any policy worth its weight will. But what should you do if you read through your contract and policy and discover your subs aren’t listed? Make sure you contact your insurance company or underwriter and ask to have your subcontractors added as additional insureds.

It’s important that all parties with an interest in a construction project are covered by your builders risk insurance. All construction projects are unique and will have their own individual coverage needs, however. This means that no builders risk policy will be exactly like another. It’s important to read through your construction contract and your policy to make sure that you’re getting the appropriate coverage.

Smiling Female Contractor

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What Does Business Insurance Cover?

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Business Insurance is one of the best investments you can make for your company. Your business is the culmination of the years of effort it took to get it off the ground, so keeping it safe is important. The right insurance policies can shield your business from accidents and financial damage.

What risks does insurance cover for your business?

The amount and type of coverage you need will vary based on a number of factors, such as:

  • Business type
  • Business size
  • Number of employees

What Business Insurance Covers

Not all businesses will require all of the policies listed below. Take the time to consider what the risks of your individual industry are and which of your assets are most important to you when deciding which policies will best meet your needs.

General Liability Insurance

General Liability Insurance provides your small business with fundamental coverage. Whatever other policies your business needs, this one is a must. General liability protects your organization from third-party lawsuits over accidents such as a customer getting injured, an employee causing accidental property damage, accidents related to the product you sell, or copyright issues from online advertising. Your general liability policy can be used to cover legal fees, medical fees, and other expenses related to a lawsuit.

Workers’ Compensation Insurance

Workers’ Comp protects your employees by covering medical expenses and lost wages in the event that they are injured or get sick as a result of the duties performed for your business. Because your employees are provided with this financial support through workers’ comp, the policy protects you from being sued by an employee for medical expenses. In most states, workers’ comp is required by law if you have any employees.

Commercial Auto Insurance

Commercial Auto Insurance covers you and your employees while you’re using vehicles for work. This policy protects you from the financial repercussions resulting from being found at fault in an accident. If you get in an accident while using your vehicle for work purposes, your personal auto insurance won’t cover it. If you use your personal car for work purposes, if your business owns or leases any autos, or if your employees use company cars, you’ll need commercial auto insurance.

Professional Liability Insurance

Professional Liability Insurance protects your business from lawsuits filed over professional errors or accidents. While general liability insurance protects you from physical damages, such as a customer slipping and falling, professional liability insurance protects you from financial damages such as making a professional mistake that causes a third party to lose money. This includes:

  • Mistakes that cost customers money.
  • Giving poor advice.
  • Missed deadlines.
  • Failure to fulfill an order.

Umbrella Insurance

Umbrella Insurance is the ultimate safety net for your business. If the costs associated with a claim on one of your other policies goes over the policy limit, umbrella insurance will make up the difference. This extra safety net can benefit both large and small businesses who may not have the money to pay a high-dollar claim that exceeds policy limits. It may be especially useful for companies with a larger number or assets they want to cover.

To determine which policies are best-suited to your business, contact us for a quote now. An accident resulting in damages or a lawsuit can have a huge impact on your business’s financial stability. Making sure you have the right coverage is a vital part of keeping your company safe.

5 Things Your General Liability Insurance Doesn’t Cover

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Whether you run a bakery, a barber shop, or a large construction firm, general liability insurance is one of the most important insurance policies you can invest in. Liability insurance is so important it’s considered the foundation policy for every business insurance coverage. It protects you from lawsuits resulting from a wide range of incidents, including:

  • Bodily injuries
  • Property damage
  • Advertising injuries

While this broad policy covers a lot, it’s important to know what it doesn’t cover.

5 Things Your General Liability Insurance Doesn’t Cover

When you’re aware of the gaps in your policy, you can take action to be sure you’re not leaving yourself exposed to unnecessary risks which could cost you big in the long run.

Damages To Your Own Property

General liability insurance does cover property damages, but only under specific circumstances. General liability insurance is designed to protect you from third-party lawsuits, which means it only covers damages to your property by an outside party, like a customer.

If you or one of your employees drives a tractor through your own window, your general liability policy typically won’t cover it.

Bummer.

Intended Damage

Because your policy only covers third-party damages, it doesn’t cover intentional damage done to your own product or property by you or one of the insured parties on your policy (like a subcontractor or employee).

Let’s say your best employee is having the worst day ever. In a moment of uncharacteristic anger, he takes his frustrations out in the worst way possible – by hurling a wrench through someone’s window.

Normally, damage to someone else’s property that is your (or your employee’s) fault would be covered under your general liability policy. But not in this case. Because intentional damage is never going to be covered by any insurance policy.

It’s important to make sure you conduct yourself professionally, don’t intentionally cause any damage to anyone’s property, and to ensure your employees follow the same guidelines.

Employee Injuries

General liability insurance may not cover accidents resulting in injuries to your employees, only accidental third-party injuries. For example, if a customer slips and falls in your restaurant, general liability can cover it. If one of your waitresses slips and hurts herself, however, your policy may not be able to cover her medical expenses or a potential lawsuit.

To keep your employees safe, it’s important to have workers compensation insurance in addition to your general liability insurance. In fact, in most states you’re legally required to have workers comp if you have employees.

Vehicles

Your general liability insurance policy will typically exclude any vehicles used for your business. Furthermore, if you use your personal vehicle for work purposes, your personal auto insurance might not cover damages that occur while your vehicle is being used for work purposes, either.

Whether you have a fleet of pizza delivery vehicles, or one truck for hauling tools to construction sites, you’ll need commercial auto insurance to cover vehicular accidents.

Professional Errors

It’s important to remember that general liability insurance doesn’t cover professional errors made by you or your employees. This means that general liability typically won’t cover faulty workmanship or lawsuits over poor advice given to a customer. For professional mistakes, you’ll need a different type of coverage, professional liability insurance.

While general liability insurance protects you from lawsuits resulting from a variety of types of accidents, there are certain events most general liability policies don’t cover.

It’s important to remember that your general liability policy covers accidental damages leading to a lawsuit from a  third-party. Relying solely on your general liability insurance will leave you with gaps in your coverage that can become expensive if you or an employee cause damage to your property.

Insurance Mysteries Decoded: What are Commercial Auto Symbols?

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Ever noticed how insurance rates get all the attention? This company can save you this and that company can save you that… and this company over here can do it in 15 minutes or less! Hey, we get it. Looking for the lowest rate for your business auto insurance can be very tempting. But when you’re shopping for insurance protection for your business, there’s another piece of the puzzle to consider.

What you actually get for that low rate. The bang for your buck.

Blonde woman holding a pink umbrella getting into a red car on a rainy day.

Imagine this: It’s a warm sunny day and you see that umbrellas are on sale. And you realize that you may need one sometime in the future, so it’s a good idea to pick one up.

Buying the lowest rate insurance without considering the coverage is kind of like buying the smallest and cheapest umbrella.

Before you make a decision based solely on a price tag, we’re going to give you the information you need to make the best purchase for your budget. Because the sun may be shining today, but eventually… It’s gonna rain.

Insurance rates are important, but so is your coverage. So here’s one thing you need to know when you’re shopping for commercial auto insurance: It’s all about the symbol.

What Commercial Auto Symbols Mean for Your Business

A commercial auto symbol is essentially a coverage code signifying which of your autos is covered, and who is protected when operating your business vehicles. Within the construction industry there 4 main symbols you’ll want to know.

Let’s decode them.

Decoding Symbol 1

Symbol 1 is going to provide you the broadest coverage for your commercial vehicles because symbol 1 is designated “any auto”; any auto you own, rent, hire, lease, and any non-owned autos. This coverage even includes your employees’ vehicles if they drive for business purposes.

Picture stepping outside in the middle of a huge rainstorm. With torrential rainfall pouring down from the sky, what kind of umbrella would you grab to cover you? When you have symbol 1 coverage, it’s like having a golf umbrella on hand to keep you shielded and unexposed during the storm.

Decoding Symbol 7

Symbol 7 is very common to commercial auto coverage, but this is a very limiting coverage. Think cocktail umbrella vs golf umbrella. Symbol 7 coverage may keep your drink covered while you’re caught in the rainstorm — but that’s about all.

With symbol 7 coverage, only those vehicles listed on the policy are covered in the event of an accident. If you need coverage for newly acquired vehicles, they need to be reported to the carrier within 30 days to be included. (Your policy may have different reporting deadlines, so be sure to check with your insurance carrier.) Do you ever have to rent a vehicle? Or do you have employees drive their own vehicles to run errands or make deliveries? Don’t expect symbol 7 to cover it.

Decoding Symbol 8

Symbol 8 refers to “hired auto” coverage. This includes any autos hired, rented, leased, or borrowed for business purposes. It does not cover autos borrowed or leased from your employees or members of your household.

Symbol 8 coverage can combined with symbol 7 to increase the amount of protection you have against auto accidents and incidents. Now we’re trading in our cocktail umbrella for a standard rain umbrella. You’ve got more protection against light rains and maybe even the occasional heavy storm, as well.

Decoding Symbol 9

This final symbol shields you from the risks that symbols 7 and 8 can’t cover. Symbol 9 coverage refers to the “non-owned” autos which are used for your business but aren’t owned, leased, or rented by you. This could be an employee’s vehicle which they drive when making deliveries or to transport tools to a construction site. It could also mean a vehicle that you borrow. Symbol 8 is like having another standard rain umbrella available when the storm hits, which you can use to keep someone else protected from the storm.

Which Symbol is Better?

Obviously, symbol 1 auto coverage provides the broadest protection for your business vehicles. Who wouldn’t want a golf umbrella on hand when a storm hits? Unfortunately, this wide-reaching coverage isn’t always available. But that doesn’t mean you have to be left exposed to the winds and rains, either.

You can bundle commercial auto coverage coverages to better protect you from the storms ahead.

Combining symbols 7, 8, and 9 is your best bet for the ultimate protection for your business vehicles if symbol 1 coverage isn’t available.

When you bundle these coverages you get protection for the business vehicles listed on your policy, hired autos which you rent or lease, and non-owned autos used for your business purposes. It’s like having a rain umbrella for you, one for your employees, and one for anyone who lends your business a car, too.

Additional Commercial Auto Coverage Options

Many carriers offer expanded coverage packages to further protect your business vehicles. One of the reasons we choose Amtrust commercial auto coverage for our contractors and business clients is the available coverage options they have available for your business. You can add roadside assistance, coverage against theft, and even glass breakage to your policy. Hey, it’s like having a pair of rainboots and a coat available for you, too!

Hint: It’s always a good idea to perform a review of your daily exposures and your current coverage. If you notice any leaks in your protection or areas where you are left exposed, let’s get you better coverage. Whether that means bundling some different coverage options together or adding an additional option, we can make sure that you’re not left out in the rain.

Rates matter. We get it. We want you to save on commercial auto insurance. But we also want you to have the best coverage available, too. Understanding commercial auto symbols can help you determine what the right insurance policy is for you, your business, and your budget; rain or shine.

Helpful Handyman Insurance Tips

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Insurance can be an exciting investment in your handyman business. It allows you to complete high-quality work for your customers knowing that you and your finances are protected in case something happens. In fact, your customers want to know that you’re insured. It means you’re concerned about safety, and makes your business a better investment for them.

Want to know how to get the most out of your coverage and put your handyman coverage to work for you?

These tips will help you make sure your Handyman Insurance benefits you, your business, and your customers.

#1: Factor Your Handyman Insurance Premiums Into Your Pricing

People will pay more for a reliable handyman, and your insurance premiums don’t have to hurt your bottom line. Budgeting for your insurance by accounting for it in the hourly rate you charge your customers, just like you would your other business expenses, will help your business’s financial stability. For example, if you’re paying $1,000 a year for insurance, adding another fifty cents or dollar per hour to your rates will help you cover the costs of your premiums. Quality insurance gives you a competitive edge in the market- make sure you adjust your rates accordingly.

#2: Advertise Your Insurance

As a handyman, having insurance gives you a competitive advantage with your potential customers. They want to know that they won’t be liable if an accident happens while you’re working on their property. Being insured can give you a more professional image, so don’t be afraid to use it in your advertising. Note on your website, business cards, and ads that you’re insured. It’ll give your potential customers peace-of-mind, and may even encourage them to pick up the phone and give you a call instead of your uninsured competitor.

#3: Provide Customers With Your Insurance Info

According to the California State License Board, contractors are required to provide their customers with their insurance company’s name and phone number so that the customer can insure their project will be covered under the insurance policy. While you may not be licensed as a contractor, you may hear this question all the same. Request a certificate of insurance to have on hand whenever you meet with a client, and you can show your proof of insurance at the drop of a hat.

#4: Have Written Safety Procedures

Written safety procedures are a great way to demonstrate your commitment to safety to both your employees and your customers. Avoiding claims is the best way to keep your premiums low, so having a written safety manual for your employees to refer back is an important addition to your safety-conscious business practices. Furthermore, a customer may ask you about your safety practices. After all, they want to make sure the job is done well and that no damage is done to their property. Having a written document to show them emphasizes your professionalism and your commitment to the integrity of the job at hand.

#5: Don’t Let Your Coverage Lapse

Because insurance is so important for the safety of your business and your relationship with your customers, you don’t want to let your coverage lapse. There are several reasons this could happen, including late payments or intentional cancellation.

If an accident happens after you’ve let a policy lapse, the consequences could be as dire as if you were never insured. Insurance generally only covers accident that happens during your policy period, and if your coverage lapses then you may not have that policy anymore, leaving you be on the hook for the damages.

Plus, letting your coverage lapse may not actually save you any money. If you have a history of lapses in your coverage, it may be difficult to find someone who will insure you at the same rate as before. A company prone to lapsing can be seen as a risk. If your coverage has lapsed, talk with your insurance broker about your options so that you can make sure the work done during the gap in your policy is covered.

Handyman Insurance is a wise investment. It protects the interests of both you and your customers, and gives your handyman business a competitive edge. Make sure your customers know that you’re insured, for both their benefit and yours. Maintaining your coverage and making sure you’re marketing yourself as insured and getting your customers the information they need will help you reap the benefits of your investment.

Top 20 Construction Blogs & Publications to Follow

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As we near the end of the year, it helps to have a list of excellent resources for finding information quick .To save you some time, we combed through all the clutter and put together this handy list of the best contractor blogs and online publications we could find covering a broad range of topics so you can save this page and keep it all right in one place.

There’s a little something for everyone in here. So in no particular order, we present to you the Top 20 Construction Blogs and Publications you should follow.

Best Construction Industry Blogs

1. AEC Business

AEC Business is a blog that will appeal to business owners, R&D managers, and construction business developers alike. Written by Aarni Heiskanen, an architect turned architectural R&D manager, internet entrepreneur, and certified management consultant, AEC Business is a valuable resource for any construction professional. Innovative ideas, products, tools, and success stories are at your fingertips to help you increase your company’s success. AEC Business features blog posts and podcasts, has a simple, clean, and stunning layout, and is not to be missed.
Recommended Reading:

  • Internet of Things for the Build Environment
  • Bringing Your Construction Site Up to Code

2. ConAppGuru

“Construction Technologist” Robert McKinney brings you ConAppGuru, the ultimate resource for construction technology. McKinney reviews the best construction apps, hardware, and strategies to get your company up to speed on the latest technology. Whether you are a one-man operation, owner of a large construction firm, tech fan, or completely clueless about construction technology, McKinney’s blog has something for you.
Recommended Reading:

  • Five Productivity Apps for Construction Teams
  • CRM Platforms for Small Construction Teams

3. Contractor Hub

Contractors and construction pros will find a wealth of information about building, marketing, and running their businesses over at the Contractor Blog at Contractor Hub. In addition to their blog, Contractor Hub also offers a free contractor directory where you can list your business as well as online tools that can help you use social media for lead generation, blog for business, create a business plan, and even a profit and loss tool.

Recommended Reading:

  • How to Negotiate the Best Discounts on Construction Materials
  • SEO Best Practices for Your Contractor Website

4. Construction Marketing Association

The Construction Marketing Association (CMA) blog may belong to the CMA, but you will find much more than just construction marketing resources and support here. A wide range of topics and categories include construction equipment, safety, home remodeling, power tools, and events. But that’s not to say you don’t also get a fair amount of extremely valuable marketing information, as well. Whether you are looking for tips to improve your proposal success or improve your website’s lead capturing ability, the CMA blog has it all.
Recommended Reading:

  • Is it Better to Lease or Buy Your Construction Equipment?
  • Relationship Marketing and Developing Loyal Customers

5. Construction Contract Advisor

You don’t need to specialize in construction contract law, that’s what you have the Construction Contract Advisor blog for. Craig Martin, a partner in the law firm of Lamson Dugan and Murray, LLP in Omaha, Nebraska, writes this must read resource for contractors which covers all aspects of construction law.
Recommended Reading:

  • The Importance of Providing Notice to a Surety
  • Workplace Safety- The Unpreventable Employee Misconduct Defense

6. Marshall Leslie

Marshall Leslie is the owner of Toronto based consulting firm M. Leslie Inc., and an industry resource you’ll definitely want to check out. Leslie’s blog offers up observations on the North American construction industry, economic news, sustainable building trends, and is a great resource for green building and policy updates as well. Leslie posts often, and if you follow him on Twitter you won’t miss a single one.
Recommended Reading:

  • U.S. Home Improvement Spending will Increase in 2016
  • Modern Slavery: the Dark Side of Construction

7. Valleycrest Takes On

The only specialized niche blog to make our list, Valleycrest Takes On is a blog by commercial landscaping company Valleycrest that focuses on water management issues. With an increasing demand for green building, sustainable design, and water conservation in the construction industry, landscaping business pros are not the only ones who can benefit from the targeted information provided by this blog. Multiple contributors from the company gives Valleycrest Takes On posts personality, and fascinating case studies demonstrate real costs savings.
Recommended Reading:

  • Water Conservation in the Cloud
  • California’s Drought Outlook

8. Contractor Talk

Come to Contractor Talk for the member-written blogs and articles, but stay for the forums. This site is specifically tailored for the contractor community, with valuable business and trade knowledge right from the mouths and minds of fellow contractors. Contractor Talk lets its members write and share their own blog posts, review products and tools, and track and share their latest projects. It’s an excellent resource for contractors by contractors.
Recommended Reading:

  • How Do You Handle Rejection
  • The Coming Jobs War

9. Build Blog

A sharply designed blog written by Seattle based BUILD LLC, the Build Blog captivates with breathtaking photos and discussions of modern design. BUILD is a design-build firm creating modern architecture for their Pacific Northwest clients. Stay ahead of the latest trends in modern design and sustainability, and impress your clients with your design savvy by following the Build Blog.
Recommended Reading:

  • Construction Cost Cheat Sheet
  • The Down and Dirty of Sustainable Design

10. Planting Acorns

Founder and President of Birmingham, AL Stewart Perry Company Merrill Stewart is the voice behind Planting Acorns. Stewart’s blog is about “helping you find seeds of potential where others only see a blank space.” Merrill’s first person account of the commercial construction industry, and updates on current Stewart Perry projects, is warm, easily read (Merrill is fond of the bullet point), and even inspirational at times.
Recommended Reading:

  • Pros and Cons of Three Concrete Structure Methods
  • Tilt Wall vs Masonry Construction

 

construction insurance

 

Best Construction Industry Publications

 

11. Building Design + Construction

Specializing in non-residential construction, BD+C magazine focuses on the architects, engineers, contractors, and owner/ developers working on projects such as airports, government buildings, commercial offices, retail, and multi-family residences.
Recommended Reading:

  • How is data changing the nature of design?
  • Good design can combat open-office issues

 

12. Construction Dive

Want the latest industry news in an easy to read, quickly digestible format? Construction Dive has you covered. The ConstructDive editorial team keeps up on the latest news and provides thoughtful analysis with in-depth feature articles for residential and commercial contractors. Dive into the site yourself, or sign up for a daily newsletter to deliver the top stories right to you.
Recommended Reading:

  • Hottest Housing Markets Dominated by FL, Pacific NW
  • The Coming Crackdown: Why Penalties for Construction Owners are on the Rise

 

13. Construction Business Owner

Construction Business Owner magazine is built for contractors looking for the latest business management information, full of practical knowledge on accounting, equipment management, finance, industry statistics, contractor insurance, regulatory issues, human resources, bidding strategies, technology, and jobsite safety.
Recommended Reading:

  • Better Brand Building
  • Controlling the Cost of Safety

 

14. Professional Remodeler

Professional Remodeler magazine is created for general remodeling contractors, as well as residential and commercial professionals. The target audience, however, is the small to medium business remodeling contractor who has been in the industry for a few years. Pro Remodel is focused on delivering business management information as well as resources on products, trends, news, design, sales, and marketing.
Recommended Reading:

  • 10 Ideas to Change Your Remodeling Business
  • Are Free Estimates in Your Best Interest?

 

15. Professional Builder

Established in 1936, Professional Builder has been a trusted resource for the construction industry for generations. Professional Builder delivers excellent resources to builders ranging from industry news, product information, business development, and more. Every year, Pro Builder highlights a home builder paving the way for the rest of the industry and awards them with the Builder of the Year title.
Recommended Reading:

  • Boomers and Millennials Compete for Condominiums
  • Consequences of Complexity in the Building Process

 

16. Contractor Magazine

Another industry publication with a distinguished history is Contractor Magazine, which has been helping contractors build their business since 1954. Industry news, in-depth articles, videos, and resources for plumbers, welders, piping contractors and more.
Recommended Reading:

  • Monthly Plumbing Quiz: Health and Safety
  • Lien Waivers: what am I really waiving?

 

17. Construction Executive

More than 50,000 construction business owners rely on Construction Executive for news about the business issues impacting the construction industry. Construction owners and top managers can find reliable information on workforce development, safety and liability, technological advancements, legislative action, insurance, estimating, and project management.
Recommended Reading:

  • Now is the time to Dig Into the Hotel Industry
  • Rebranding Construction to Attract a Talented Workforce

 

18. For Construction Pros

The ultimate resource for contractors, For Construction Pros is your destination for this and six other digital publications, including:

  • Equipment Today
  • Rental
  • Pavement
  • Concrete Contractor
  • Asphalt Contractor
  • Sustainable Construction

 

A one-stop shop for information across the construction and equipment industry.
Recommended Reading:

  • Technology is at Contractors’ Fingertips, Literally
  • New Technique Could Make Cement Manufacturing Carbon-Neutral

 

19. ENR Engineering News-Record

ENR is the one of the world’s leading engineering and construction news magazine, and has been providing contractors, project managers, owner/ developers, engineers, and architects with industry news, analysis, data and opinions since 1911. ENR compiles and publishes an extensive amount of data on labor costs and construction materials, in-depth industry economic analysis reports, and the rankings of the largest construction and engineering firms by revenue.
Recommended Reading:

  • Who Bears the Blame in Federal Contract Disputes?
  • ENR Risk Survey: The Clients and Clauses That Companies Avoid

 

20. Equipment World

Where can you get the latest news and information on work trucks, excavators, dozers, and more? Equipment World, of course. The review section accomplishes something almost impossible: unbiased, contractor-based reviews of heavy equipment from owners who rate their performance, serviceablity, and machine comforts, as well as dealer service and support.
Recommended Reading:

  • A heavy hauler’s guide for managing load distribution: Keeping things in balance
  • Intelligent Traction: How modern articulated dump trucks traverse hills, extreme slope with a full load

 

These great resources will keep you up to date on everything you need to know to get ahead of the game, so don’t miss a single one.Construction Insurance

Handyman Insurance Facts and FAQs

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Handyman Insurance is a collection of insurance policies suited for your handyman business. Your business has unique qualities that set you apart from other handyman and contracting businesses. While larger businesses may need umbrella coverage, for example, you may only need a few basic policies to get started.

Trying to decide what insurance coverage best suits your needs? Below we’ve included some of the most popular questions we at Citizens General get from our handyman customers to help you find affordable insurance with the coverage you deserve.

Don’t see your question below? Don’t hesitate to contact us.

Handyman Insurance Terms Decoded

Buying insurance involves terms that may not be familiar to you. You may notice that there is certain language that applies specifically to insuring a handyman business or a construction business. Here are some of the more commonly used terms you may encounter when learning about insurance coverage for your business:

  • Bundle: When you bundle your insurance you buy multiple types of insurance, such as General Liability, Inland Marine, and Commercial Auto, from the same carrier.
  • Claim: A claim is a demand by an individual or a company for compensation or recovery from loss that falls under the insurance policy in question. For example, if you get in a car accident on the job, you would file a claim under your Commercial Auto policy.
  • Deductible: The amount an insurance company will deduct from the loss before the company pays up to your policy limit. For example, if you have a $500 deductible and your policy limit is $1,000 and you’re an accident with a loss of $1,500, you pay a deductible is $500 and the insurance company pays the rest.
  • Inland Marine: Inland Marine Insurance is property insurance for property in transit over land. This is particularly useful for the transport of expensive tools and construction equipment.
  • Liability: In the world of insurance, a liability is the obligation to pay a certain sum of money for damage or an injury caused by negligence or prohibited actions.
  • Premium: A premium is the amount of money the insurance company charges to provide the coverage specified in the policy.
  • Risk: A risk is the uncertainty that comes from the possible occurrence of given events. For example, a worker not wearing a hardhat on a job site is a risk that may lead to an injury.
  • Specialized Broker: A specialized broker provides insurance for a specific type of business, making them able to provide comprehensive coverage for those businesses. For example, Citizens General specializes in contractor insurance for small businesses and artisan contractors.

How Does Handyman Insurance Work?

Handyman Insurance protects you from financial loss in case of an accident or other incident. Your insurance company protects the assets covered by your policy (for example, your truck in the case of a commercial auto policy) in exchange for a premium.

Who Needs Handyman Insurance?

All Handyman businesses could benefit from insurance coverage- whether you’re a one-man operation or building up a larger business.

What Kind of Insurance Does My Handyman Business Need?

What insurance you need will depend on the size and nature of your handyman business. If you are the sole proprietor of your business and don’t work on high-risk projects, you may only need General Liability Insurance. However, many states require Workers Comp if you have any employees.

Citizens General offers different policies so that you get the exact coverage you need for your operation.

  • General Liability: General Liability Insurance is the most important handyman insurance policy to have. This policy protects your assets from a third party claiming damages in the event of an accident.
  • Commercial Auto: In the event of an accident, Commercial Auto Insurance protects your work vehicle, or your personal vehicle if you use it for work purposes more than 50% of the time.
  • Inland Marine: Inland Marine insurance protects the tools and equipment you transport to and from a job site.
  • Workers Comp: Workers Compensation protects you and your employees in the event of an injury incurred on the job.
  • Professional Liability: Professional Liability Insurance protects you from claims based on the quality of your work.
  • Umbrella Insurance: Umbrella Insurance acts as a supplement to your other policies. If a claim exceeds your policy’s limit, your Umbrella Insurance makes up the difference.

How Much Does Handyman Insurance Cost?

Citizens General is committed to getting you the best coverage at the most affordable rates. The best way to get an estimate of how much your insurance will cost is to get a quote tailored specifically for your business.

Accidents can happen, no matter how much much you try to avoid them.. As a handyman, your day-to-day working environment involves taking on risky jobs: working with dangerous power tools, repairing broken stairs, fixing leaky toilets, and replacing broken light fixtures. Let your insurance company worry about protecting your business so that you can focus on what’s most important- doing great work for your customers.

Construction Insurance

What Isn’t Covered in a Builders Risk Insurance Policy?

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Builders risk insurance protects a construction project from a wide variety of accidents, including fire and vandalism. Because this policy covers such a large range of incidents and parties, it’s an invaluable part of your construction insurance. However, it’s important to be aware of what builders risk insurance doesn’t cover, so that you know where you may need to fill in the gaps in your coverage with other policies.

5 Incidents Your Builders Risk Insurance Won’t Cover

Even though your builders risk policy may be written as “all-risk,” don’t fall into the trap of thinking your coverage is bullet-proof. Every insurance policy will have some coverage exceptions in place.

Here are five scenarios where you may not be protected by your builders risk policy:

#1: Overlapping Liability Coverage

While your builders risk policy might overlap with your liability insurance in certain areas, your builders risk insurance typically won’t cover liability issues that could be covered by other policies. For example, your policy may not cover an accident if the insurance company determines that the incident was caused by negligence by you or another insured party. In that case, you may need general liability insurance instead.

#2: Faulty Workmanship

This includes faulty design and materials as well as faulty workmanship. Builders risk insurance only covers certain accidents, and faulty workmanship typically isn’t covered under this policy. This type of damage is often the result of a professional error, not an accident. Read your builders risk insurance policy carefully, and don’t be surprised if it includes a specific exclusion for faulty workmanship.

Luckily, you don’t need to be completely exposed to faulty workmanship risks. Citizens General offers a Faulty Workmanship endorsement for contractor general liability policies which extends up to $10,000 worth of coverage if you make a mistake. Contact us to learn more.

#3: Intentional Damage

While builders risk insurance may cover acts of vandalism, this only applies to damage done by third-parties. If you or any of the other insured parties covered under your policy intentionally damage the property or your materials and equipment, the insurance company will not cover the loss. Make sure you, your employees, and your subcontractors conduct themselves professionally to avoid having to pay for intentional damages.

#4: Wear and Tear

Builders risk insurance is intended to protect you from damages that occur on a construction project during the course of construction. Natural wear and tear on project supplies or equipment is typically the result of long-term weathering and use rather than a specific occurrence, and this is outside the coverage of a builders risk policy. It’s important to invest in regular maintenance of your tools and invest in quality supplies.

#5: Extreme Events

Your builders risk coverage may exclude certain extreme natural incidents such as floods or earthquakes- be sure to read through the policy before purchasing if you think your project is at risk of either of these events. If you are working on a project in a flood zone or along a fault line, your insurance carrier may offer supplemental coverage in the form of flood or earthquake insurance.

Additionally, there are certain extreme events that may be caused by a third-party that your builders risk insurance may not be able to cover. This can include nuclear risks, acts of terrorism, and acts of war.

Builders risk insurance is important coverage for any construction project. However, make sure it’s not the only insurance policy you’re relying on. While builders risk provides invaluable protection against accidents, it can’t always cover extreme accidents or events where one of the insured parties is at fault. Make sure you have a comprehensive insurance bundle to keep your company safe.

How to Get More Business with Handyman Insurance and Bonds

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Carrying handyman insurance and surety bonds is a must for your small business. Insurance protects you from accidents and lawsuits, giving you greater financial security and peace of mind. Bonds can help give your customers peace of mind knowing that they’re covered if your contract is broken.

(Look how happy these people are to find a handyman who’s insured and bonded!)

Your insurance and bonds keep your business safe, but did you know you can use them to help your business grow, too?

The fact is, having handyman insurance and offering surety bonds makes you look more professional. You can use that image to reel in new clients.

What Your Handyman Insurance Should Cover

Handyman insurance is specifically designed for your handyman business. It protects you and your assets from financial loss because of an accident or mistake made on the job.

Handyman insurance may be composed of a number of different policies, including:

  • General Liability
  • Commercial Auto
  • Inland Marine
  • Workers Comp
  • Umbrella Insurance

If an accident happens to a third-party on a job, general liability has you covered. If you back your work truck into a telephone poll, you’ll need commercial auto. An inland marine (aka tools and equipment) policy safeguards your tools.

In short, a good handyman insurance policy covers all of your assets and risks.

Why You Need Surety Bonds, Too

If insurance protects you and your business, then why would you need a surety bond?

In a nutshell, your insurance protects you, but your bonds protect your customers.

A surety bond is an agreement between you as the contractor, your client, and your insurance or bond company guaranteeing that you will fulfill your contractual duties. These bonds are required by most public construction contracts and many private ones.

If a client is financially harmed, they can make a claim against your surety bond. The bond company then investigates the claim and pays up to the bond amount. There are several different types of bonds for contractor and handyman businesses. The type you’ll need depends on what your client requests for a given job.

As a handyman, you may be interested in the following contractor bonds:

  • License Bond
  • Bid Bond
  • Payment Bond
  • Performance Bond

How Playing it Safe Reels In New Clients

As a business you have an image, a brand. You want potential clients to associate positive traits with your brand. That way, next time they need someone to fix a fence or a leaky sink, the good image they have of your business will come to mind.

Both handyman insurance and bonds tell your customers the same thing: your business is a safe choice.

Without insurance or a bond, customers don’t have a guarantee that you’ll hold up your end of your contractual agreement, or that they won’t be held financially liable if an accident happens.

Market Yourself As The Safe Choice

Help your business grow by using your handyman insurance in your marketing. Your status as insured helps you make it clear that being safety-conscious is integral to how you do business. This can help you can catch the attention of the new clients you need.

Advertise yourself as insured in these key places:

  • Your website
  • Your social media accounts
  • Promotional materials like newsletters, business cards, and brochures
  • Online directories such as Yelp and the yellow pages

Important Legal Restrictions on Advertising

It is vital that you know what your state’s laws are on advertising your handyman business. Make sure you understand how you can and can’t advertise before publicizing your ad materials.

Here are a few examples of how you can (and can’t!) advertise your insurance and bond status if you do work in California.

  • While advertising yourself as insured can help grow your business, advertising yourself as bonded is illegal in the state of California.
  • If you choose to advertise yourself as insured, you must specify what types of insurance policies you carry.
  • If you’re licenced as a general contractor you must incorporate your licence number on your advertising materials.
  • While you can operate unlicensed as a handyman in California if you charge less than $500 per job, you must note on your advertising materials that you are unlicensed. If you wish to charge more per job than that, you have to become licensed as a general contractor.

The above laws pertain to the state of California. Regulations on advertising insurance, licensing, and bonding, for a handyman or a contractor vary enormously from state to state.

Make sure you check with your state license board and make sure you understand the restrictions in place before you start advertising.

Use Bonds To Get Your Foot In The Door

Certain clients, particularly commercial or government clients, may require that you carry a surety bond as a prerequisite for bidding on a certain job.

For example, a type of surety bond called a bid bond insures that you will honor your original bid price should you be selected for the job at hand. If you don’t honor that price, the client can file a claim against your bond to recover the cost of needing to find a new handyman or contractor for the job. By asking for a bid bond, a client screens out handymen who wouldn’t honor the bid they committed to, or who bid recklessly.

As you can see, having a surety bond can make you eligible for projects you wouldn’t be otherwise.

Having handyman insurance and carrying surety bonds can make your business more competitive. Building a brand that portrays you as trustworthy is a great way to attract new customers. Being insured and bonded is part of building up that professional image.

Does Your Contractor Insurance Cover Construction Defects?

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It would be nice to think that you’ll never have to deal with a construction defect or faulty workmanship claim. After all, you strive for perfection on every project and have rigorous standards in place to prevent these sorts of issues from occurring. If a construction defect claim does come knocking on your door, it may be a good idea to have some sort of contractor insurance policy in place as a safety net… but which one?

Which of your Contractor Insurance Policies Covers Construction Defects?

Your construction insurance coverage is generally meant to protect you from the truly unexpected events you could encounter: fires, theft, auto accidents, injuries, or even a setback for the project you’re working on. But a construction defect usually falls outside of this realm of “unexpected” event.

A construction defect is typically a result of failure of design or construction which may lead to injury or damage. Some construction defects may have serious repercussions, while others may present no increased risk of injury. The latter are considered “passive” losses, which could lead to a loss of use, extra expenses, or decreased value for the property owner. Either way, the losses an owner faces could come back to you.

If you are hoping to safeguard your contractor business against the risks of a construction defect, here are a few of the policies which may (or may not) cover you:

Builders Risk

Builders risk coverage protects a project under construction against losses from theft, fire, vandalism, or wind. Builders risk is often written on an “all-risk” basis, meaning all perils are covered unless they are specifically excluded in the policy. Which means construction defects or faulty workmanship may possibly be covered in your policy.

Check out the pros and cons below to find out if it is.

Pros:

Some builders risk policies may include specific coverage for resulting damage due to faulty workmanship, construction defect, or design error. Carefully read your builders risk policy to see if it covers construction defects, or ask your insurance provider if this coverage is included.

Cons:

Not all builders risk policies cover faulty workmanship or construction defects. Yours may contain a faulty workmanship exclusion, which would prevent coverage for these claims. Read your policy to see if faulty workmanship is excluded.

Builders risk coverage is typically written on a project specific basis; it begins when materials are delivered for the project, and ends when the work is complete and the finished project has been turned over to the owner. If your builders risk policy does include coverage for construction defects, the coverage period is generally only for the amount of time it takes to complete the project. Any defects which arise after the policy period has ended generally won’t be covered.

Product Liability

Product liability coverage protects manufacturers or sellers from third-party injuries or property damage claims. Typical coverage includes manufacturing or production flaws, faulty design, or inadequate warnings or instructions.

Pros:

If you manufacture and install a particular building supply, such as custom windows, product liability is meant to protect you from claims arising from defective products. If you are a retailer who offers installation services, you may also benefit from this coverage.

Cons:

Not all contractors can benefit from product liability insurance. The coverage is specifically meant to cover manufacturers and businesses which sell products. If you don’t manufacture the product itself, then this particular policy won’t be the answer to your defect coverage issue. If you install the windows manufactured by someone else, for example, product liability covers the manufacturing party but not you.

Contractors Professional Liability

A relatively new coverage which is intended to protect contractors involved with design-build work, Contractors Professional Liability protects against construction defects arising from design errors or omissions. Like a standard professional liability policy, it covers lawsuits due to errors, oversights, or professional negligence.

Pros:

Contractors who engage in design-build work face more risks for professional liability exposure. Contractors professional liability coverage can be written on a project-specific basis, just like builders risk; on a claims-made basis to cover any claims made during the policy period; or on an annual basis to cover all of your design-build operations.

Cons:

The benefits of a contractors professional liability policy typically make this policy a smart addition to a contractor insurance package when you perform design-build operations. General contractors or subcontractors who don’t perform design-builds may have never even heard of this coverage and aren’t likely to carry it.

General Liability

General liability protects contractors from third-party claims for bodily injury or property damage, and many contractors assume that this coverage includes faulty workmanship and other construction defects. (This assumption may or may not be correct, so keep reading.)

Pros:

General liability insurance often includes coverage for “completed operations,” which includes liability arising from your work or product once operations have been finished.

Cons:

Most general liability policies actually include multiple exclusions which specifically prevent coverage for faulty workmanship. The subject of defect coverage within your general liability coverage is actually a pretty heated one in the insurance industry.

The overall purpose of a general liability policy is to cover you for damages due to bodily injury or property damage caused by an occurrence. And there is widespread industry disagreeance about whether or not a construction defect actually counts as a covered occurrence. Many courts in various states have come to different conclusions about whether a defect is or is not an occurrence, as well as resulting damage to other work or third party property.

You may be surprised to find that faulty workmanship has traditionally not been covered by a contractor general liability policy.

But there’s one more contractor insurance solution to be considered for protection against defects.

Faulty Workmanship Endorsement

Citizens General offers a Faulty Workmanship Endorsement which can be added to a contractor general liability policy. This endorsement removes uncertainty over whether construction defects and faulty workmanship are covered under your general liability policy or not.

Pros:

The Faulty Workmanship Endorsement provides up to $10,000 of coverage for you against claims arising out of faulty workmanship, materials, or products. With the endorsement, you don’t have to worry whether or not your defect claim is covered by a standard general liability policy; you’ll have peace-of-mind knowing you’re covered.

Cons:

There are no drawbacks to adding this endorsement to your general liability policy. The affordable endorsement offers you protection against a risk that you are very likely to face as you perform your work, no matter how much you strive for perfection on every job. If you want a safety net against construction defect claims, the Faulty Workmanship Endorsement is the answer. This endorsement is so affordable, you’d be downright careless not to include it to your contractor insurance coverage.

No one wants to think their work could be considered “faulty” or “defective.” But if you do happen to have an incident where something you’ve designed, built, manufactured, or installed led to an injury or property damage, the right contractor insurance policies and endorsements can offer you a safety net to protect you. Mistakes can happen. When they do, your insurance is there to ensure you won’t be left paying the price.