5 Ways to Advertise Your Construction Insurance Coverage

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There is a benefit to your construction insurance coverage you may not have considered. Your coverage makes you more attractive to future clients, and the homeowners and bid decision makers that you want to work with.

Insurance coverage alleviates your clients’ fears.

Project owners want to know that an accident on their property won’t cost them. They want to know that you will finish the job if something goes wrong. And they certainly don’t want to be asked to pay the price for it.

You are smart enough to carry builders risk insurance to protect your projects from accidents and worst-case scenarios.

So let future clients know about it!

Luckily, advertising to your future customers is easy and cost-effective in today’s world of digital marketing, and you won’t have to take out a billboard to do it.

Here are five ways to advertise your builders risk insurance coverage (without paying for a billboard):

1. Your Website

The way people shop for contractors has changed.

When a consumer goes searching for a contractor, you can bet they’ll be looking online. In fact, 89% of consumer purchases involve online searches.

Your customers will be looking for your website, and you won’t get a second chance to make a first impression. You have only moments to grab their attention with your website and convey that you are professional and trustworthy.

Make sure it’s optimized for search, loads quickly, and is responsive (mobile and tablet friendly).

And don’t forget to let your website visitors know about your builders risk insurance coverage.

2. Social Accounts

Are you using Facebook, LinkedIn, Twitter, or any other social accounts to advertise your business?

These are great places to put important information, including the fact that you are insured and bonded.

Make sure you have social icons prominently displayed on every page of your website where people can easily navigate to your social pages to follow you.

3. Email Newsletters

Do you follow up with your clients by emailing a weekly, monthly, or quarterly newsletter?

If you aren’t using email marketing, here are a few reasons you may want to start:

Emails are an easy way to reach your clients where they are (which is probably on their phones!)

Email newsletters are easy to create.

Email marketing is inexpensive.

Email newsletters are a perfect place to ask for referrals.

Emails are a perfect way to keep your clients informed. Show off your recent completed projects, give them some tips or tricks that they can use, and let them know of changes to your business.

For example, that you have updated your construction insurance coverage!

4. Electronic Business Cards

No matter how much technology is changing the way we do business, the business card will probably never go out of style. But today’s business cards are less about paper and print, and more electronic in nature. Electronic business cards, or vcards, are a modern way of getting your contact information out to new leads. Make sure your vcards advertise the fact that you are fully insured and bonded.

5. Online Directories

Gone are the days of the phonebook. Today, online directories are the best place to have your business found, and reviewed, by customers. Making sure your business page is accurately set-up on an online directory should be a part of your advertising plan.

Which directories should you be on? The most important one has to be Google+. Google is the king of all search engines, so you want to be involved in the social networks and directories that they offer. Google+ Local allows users to discover, review, and share businesses like yours.

Don’t forget Yelp, Yellowpages.com, and any other online directories that may be targeted towards your specific niche, like DirectoryForContractors.

Your digital marketing efforts will be even more effective when you are putting your best foot forward to potential new clients. Don’t forget to include information about your construction insurance coverage in all of your online marketing channels.

Construction Insurance

What Does Liability Insurance Cover for Painters?

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You know exactly how to use the perfect paint, stain, and varnish to completely transform a surface from ordinary to extraordinary. You’re skilled at precision, and have an eye for color. You know the right tools to use to get just the right effect on every finish.

But brushes and rollers aren’t the only tools that you use in your painting contractor business.

Before you even set up a ladder and open a can of paint, you need to have general liability insurance.

As a matter of fact, general liability (GL) is the bare minimum insurance you need to conduct business in any state.

Why Do Painters Need GL Insurance?

Whether you are an independent artisan or a small business owner, GL is the one thing standing between you and the risk of lawsuits over

  • Accidents
  • Injuries
  • Illnesses
  • Property Damage

Let’s face it. We live in a society where lawsuits are the norm.

If you had a claim brought against your company, the potential costs of judgements, settlements, court costs, and attorney fees could be more than you can pay.

One incident could put you out of business. Or worse.

GL insurance protects your business assets. And if you are the sole proprietor of your business, it protects your personal assets, as well.

What Does General Liability Insurance Cover?

What sort of protection does GL insurance offer you as a painting contractor?

1. Bodily Injury & Medical Expenses

If a homeowner gets tangled in the ladder that you’ve been using to paint a ceiling, guess who is at risk for a lawsuit.

Accidents happen.

But when an accident happens to someone else as a result of you doing your job, there could be a steep price to pay. When the homeowner gets tangled in your ladder and falls, the medical bills could get expensive.

Don’t worry about paying for the medical expenses out of your own pocket. That’s what your insurance coverage is for.

Insurance is there to safeguard you in the event of such an accident. Your policy will cover medical expenses, and, in the absolute worst of unthinkable situations, funeral expenses and court-awarded compensation if a third-party injury results in death.

2. Completed Products

Did you know that a job you’ve already completed can still be a risk for a lawsuit? If your completed work results in an injury to a third-party, GL will protect you from expensive legal expenses and damages (up to your policy limits.)

Move forward from your finished jobs with confidence, knowing that you don’t have to constantly be looking over your shoulder.

3. Property Damage

Oops. Ok, so you probably don’t plan on inflicting a lot of unintended property damage during the course of your projects, but it does happen. Oil based paints, stains, paint removers, ladders… painting is an art that can carry a bit of a risk to someone else’s property.

If someone alleges that their property was damaged by your painting business, don’t panic about the high costs of a lawsuit. That’s what contractor liability insurance is for.

4. Advertising Injury

Remember that picture you found on the internet and loved so much you used it for your Facebook business page, and for some print collateral?

Turns out it had a copyright.

Even though you didn’t know it at the time, or do it on purpose, you would still be facing some major liability here. Advertising can be tricky business, and with GL you are covered in case someone alleges that you caused non-physical damage through your advertising.

When you are running a business, there is a lawsuit waiting for you at every turn. General liability insurance is the answer. You wouldn’t begin a paint job without getting your tools and supplies in order, and you shouldn’t paint a single stroke unless general liability insurance is among them.Construction Insurance

What General Liability Insurance Doesn’t Cover

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Operating a business can be risky. Lawsuits happen every day, and when you operate a business or work with clients, there’s a good chance one could happen to you.

Not to be negative, but it’s true.

And lawsuits mean attorney fees, court costs, and the possibility of a judgement so large your business couldn’t pay the bill.

It may sound like a far-fetched scenario, but it happens more than you might think.

As a matter of fact, lawsuits are so common that most states require your business to carry general liability (GL) insurance.

If you are sued and have GL coverage, your insurance company pays for:

  • Judgements and damages you owe to the person suing your business
  • Attorney fees
  • Miscellaneous court costs, including evidence expenses

But being covered doesn’t protect you from every lawsuit under the sun.

Here are some things that your liability policy doesn’t cover:

Your Property

The good news is that GL does cover third-party property damage.

The kind of damage that occurs when your employee accidentally backs your work truck across the lawn and through the fence of a neighboring home during a remodel project.

Hey, he thought he was in “Drive.”

It was an accident.

GL covers this, and many other kinds of property damage. But it doesn’t cover damage to your own property.

If your property is damaged, don’t look for GL to cover it. You will need commercial property or builders risk coverage for that.

Your Vehicles

10 million. That’s the number of auto accidents that happen each year.

That’s nearly 3,000 accidents every day.

General liability doesn’t cover your vehicles if you, or one of your employees, is involved in an auto-accident in your work truck.

And neither will your personal auto policy. (Not if you are using your vehicle for business purposes.)

That’s why contractors add commercial auto coverage to their GL coverage; because trucks, vans, and other vehicles are crucial to getting the job done.

Your Employees

When a neighbor or homeowner accidentally gets injured on your jobsite, GL covers it. Any third-party bodily injury is part of that coverage.

Your employees, however, are a different story.

And since construction is one of the riskiest businesses out there, your guys are putting their safety on the line each time they show up to do their job.

Workers’ comp insurance is there to cover the medical expenses, lost time, and other costs associated with an injury to one of your employees.

Your GL policy won’t cover any of these things.

If you have employees and only GL, you could be looking at a big expense when one of your employees gets hurt on the job.

What’s Covered with General Liability… and What’s Not.

To sum up, here’s an easy way to remember what GL covers, and what it doesn’t:

  • General liability is there to protect your business from third-party (non-employee) lawsuits.
  • The keyword is third-party; if it belongs to you, GL doesn’t cover it.

If a person not involved in your business wants to file a lawsuit over property damage, bodily injury, accidents that happen on your property, reputation damage, or even copyright infringement, GL will protect your business from a potentially devastating loss.

General liability is a great foundation for protecting your business. When you start adding additional coverage for your employees, vehicles, and projects to GL, then you end up with a business that is ready to weather just about anything.

15 Ways Contractors Can Avoid General Liability Claims

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It doesn’t matter how carefully you adhere to safety standards. If you are in construction, there is a chance that someone can get hurt, or something could get damaged. And when a third-party person decides that you are at fault for their injury, a lawsuit is never far behind. That’s why your construction business carries general liability coverage.
There are steps you can take, however, to reduce your risk of a lawsuit coming your way, and to avoid filing that claim.

Here are 15 ways you can avoid a general liability claim from happening in the first place.

1. Keep the lines of communication open

When you work with homeowners, keeping an open line of communication with them should be a top priority. How does this prevent claims? Let’s ask a doctor. In a study that looked at malpractice claims, doctors that had never been sued spent an average of three minutes longer conversing with patients and engaging in active listening than doctors who had been sued.

The takeaway from this study is: clients who feel like they are being included in conversations, listened to, and know what is happening are less likely to sue. And that means you don’t need to make a claim.

2. Maintain adequate project site lighting

A dark work space is just inviting a fall or other kind of bodily injury claim. Adhere to OSHA illumination requirements and make sure your project site has adequate natural or artificial lighting in all construction areas, stairways, corridors, and storage areas.

3. Keep a clean site

A clean project site is a safe project site. Scrap lumber with protruding nails, spills or wet surfaces, and miscellaneous debris should be cleared from work areas in and around the building at all times to prevent bodily injury from trips or falls.

4. Keep exits clear:

Never allow an exit to be obstructed by equipment, supplies, debris, or any other obstruction that could lead to an injury. Exits should always be clearly marked, unlocked, and free from obstructions in case of fire or other emergency.

5. Make fire prevention a priority:

Keep flammable materials and chemicals such as paint, aerosols, and lacquers separate and in a plastic container. Never store them near a fire or source of heat. Properly dispose of any rags or other materials that come into contact with flammable materials. Be sure all employees are trained in fire prevention practices, and make these a priority.

6. Test pipe systems before construction starts:

Water damage is the leading cause of property damage, and you don’t want to be responsible for flooding a neighbor’s property or apartment. Prevent water damage by testing pipe and other water systems as early as possible in the project.

7. Secure the work area:

Want to limit the amount of unauthorized visitors to your site? Tape off the work area so no one can come on the jobsite without approval. Securing the project site can be a deterrent to third-parties that may accidentally wander on to the site and be at risk for injury.

8. Get employees involved:

Workplace safety doesn’t have to start and end with you as the business owner. Get employees involved in your OSHA safety training, and invite collaboration. They may see opportunities to improve onsite safety that you have missed.

9. Don’t rush the work:

Poor workmanship can lead to a construction defect; and that can lead to a completed products claim. Take your time, and make sure your employees and subs know to do the job right the first time.

Did you know? Construction Defect claims from someone not doing a good job are not covered by general liability insurance. But our general liability program offers Faulty Workmanship coverage in nearly every state. You can get up to $10k in coverage for as little as $30 per year. So you are covered in case one of your employees isn’t performing up to your standards.

10. Pay close attention to installation:

Even the best quality materials could result in a construction defect claim if they aren’t properly installed.

11. Inspect materials before using them:

Double check materials for manufacturer defects before installing them on a project site. You don’t want to be responsible for a construction defect claim because you used a defective (or improper) material on a job.

12. Market your business with class:

Digital marketing is a great way to get the word out about your services, but don’t boost yourself up by tearing down the competition. If you say something that could damage the reputation of a competitor on your blog or social media accounts, you could be held liable for libel or slander.

13. Don’t use other people’s images or names without consent:

A picture of your favorite celebrity might make a fun image for your website, blog, or social accounts, but it can also send you on a one-way trip to an advertising injury claim. Just because a celebrity is a public figure, doesn’t mean you are allowed to use their name or photos without permission. Make sure that any music, photographs, videos, writing, and content that you use on your website, blog, social media, or printed materials belongs to you, or that you have the right to use it to avoid copyright claims.

14. Don’t be offensive in your marketing:

There is a fine-line between humor and offense. If you want to be funny in a blog post, you may want to get a second opinion to be sure you aren’t being offensive to a group of people or an individual.

15. Don’t speak badly about clients:

If you have had a bad experience with a client, don’t air it publicly or privately. Talking about someone badly (slander), or writing something bad (libel) about a client in a way that could be damaging to their reputation can lead to a claim. The same goes for the competition: an untrue statement that could damage their reputation could send you straight to court.

Your construction business needs to work hard to avoid lawsuits from third-parties. If someone suffers bodily injury, property damage, or injuries to their reputation as a result of your business, you can be facing a suit that could cost you everything.

Carrying adequate general liability insurance coverage, and not letting your coverage lapse, is the best way to protect yourself from an expensive lawsuit, court fees, lawyers fees, and other costs of an expensive lawsuit. Do your part to reduce the risk of an injury or damage happening in the first place, and your construction insurance will be there for you, just in case you need it.

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Social Media Mayhem: How Liability Insurance Protects Your Business

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In today’s digitally driven world, social media is an essential marketing platform for most businesses. It’s also a rather unruly place with the potential to create serious liability headaches for you as a business owner.

Since social media and digital business aren’t going anywhere, the best course of action to avoid stress and potential lawsuits, is to protect yourself against threat well before it ever becomes a problem.

Let’s look at how digital business activity and social media contribute to online business risk and potential liability.

Defamation & False Advertising

Some of the biggest risks businesses face with regards to social media posts are defamation and false advertising risks.

Defamation

Defamation occurs when a false statement about another party is made that damages that party’s reputation.

Two kinds of defamation are slander and libel.

Slander is when the statement is oral and libel is when the statement is written, and both are types of defamation.

False Advertising

False advertising occurs when misleading, unproven or untrue information is used in the promotion of products or services to consumers.

For example:

Say you post a new vitamin supplement from your health food store on social media claiming it will turn any normal person into a wildebeest in 10 days or less. Working under the assumption that this would not be possible with any type of vitamin supplement, that would make your statement false advertising.

 

 

Or…

Another way false advertising presents itself is in exclusivity claims. If your business  claims to have the “one-and-only” product or service of some kind, but in actuality, sell the same service or product as even one of your competitors, that’s false advertising.

In the United States, businesses accused of slander, libel and/or false advertising may be sued by the affected party(ies). These lawsuits often result in costly legal fees, not to mention any settlements or judgements that might have to be paid.

So how do you protect yourself against these marketing and advertising risks?

General Liability Protection for Marketing & Advertising

Because many businesses face these risks, General Liability Insurance (GL) policies have long provided protection against most slander, libel and false advertising lawsuits. For years, general liability provided all the protection typically businesses needed against these risks.

The advent of the internet in general, and social media in particular, have increased these risks for many businesses. Not only are there new platforms where businesses might publish something that’s defamatory or false, businesses are also publishing statements at a faster rate than they were before, increasing risk by way of frequency.

As a result, new risk has emerged, which may not be covered under the fine print of every General Liability policy. Since not all GL policies have been updated to adequately cover all of today’s digital risks, some businesses opt to include additional liability coverage to bridge the gap.

Protecting with Additional Liability Coverage

While some General Liability policies have incorporated adequate digital protections into their terms and conditions, other types of coverage have emerged to help provide specific coverage for digital activities that but businesses at risk.

To help protect against new and increased risks presented by online activities and social media, insurance companies often offer cyber liability, media liability, and umbrella policies to cover the extra innate risk faced by some business industries.

As an added benefit, some new insurance products that offer added liability protections for social media activity frequently go beyond just defamation and false advertising.

In many cases, policies that focus specifically on protecting your online activities often cover:

  • Online copyright infringement, which occurs when a copyrighted image is published online without permission
  • Breaches of contract, which occurs when an agreed-upon contract is violated
  • Invasions of privacy, which occurs when photos of people are published without the necessary releases

Finding Social Medial Liability Protection for Your Business

Not every business needs more than just General Liability to cover their online activities. But the best way to make sure you don’t have holes in your coverage making you vulnerable, is simply to give your agent a call, and ask. Prepare to avoid risk so you can focus more energy on the important task of building your empire, and worry less about the liability what-ifs lurking in the digitally driven day-to-day of modern business.

Freelancing Isn’t Free: Protecting Yourself in a Gig Economy

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Throwing off the chains of the traditional 9-5 in favor of freelancing freedom is a popular dream these days. And thanks to a modern connected economy, remote work and virtual meetings are the norm, making it easier for more people to find their stride as a free agent.

This independent career choice brings with it the freedom to make your mark as well as your living. But, as any seasoned freelancer will tell you—freelancing is far from free.

Freedom and independence as your own boss balances itself with challenge and risk.

While you trade structure for freedom, and reliance for independent choice, you also assume liability, and become vulnerable without the safety net of your employer’s insurance policies and legal accountability for your actions.

The trade isn’t always pretty for those who are not prepared to face the reality that their side hustle or paid passion project is truly a business—which comes with the responsibility of treating it like one.

If you want to keep enjoying your professional freedom…

Here are 3 simple ways to insulate yourself against liability as a freelancer, and protect your future as an independent business person.

1. Create a Legal Business Structure

Whether you realize it or not, your freelance work counts as a business. You’re a sole proprietor, by default, the moment you earn enough money to require reporting it to the IRS.

The problem with being a sole proprietor, is the liability. Your personal assets become fair game, should any unhappy client decide to sue you.

Creating a legal entity draws a clear line between your personal and business life on paper, protecting your personal assets in the event you’re sued for something work related.

Small business owners have many options when it comes to converting from a sometimes-1099 contract worker to a legit business owner with something to protect. LLCs, S-corps, C-corps, and more. Just a quick search online will provide lots of articles on how best to structure your freelance business, and the IRS website has details on the tax implications and registration requirements for each type of business. Of course, a chat with your tax accountant or attorney is always a safe place to start too.

2. Purchase Small Business Insurance

Now that you have a formal business, it’s time to protect it. Before you even consider taking on a client, or doing uninsured work that could come back to haunt you, take control of your risk and reduce your liability with an insurance policy.

Small business insurance isn’t typically expensive, and in most cases, you can get a policy in place quickly online by answering a few questions about your industry and business structure.

Depending on what sort of work you do, you’ll likely be considering a combination of the following coverages:

Often, a Business Owner Policy (BOP) is available for you to purchase, which packages all the coverage you need in a tidy package, minimizing the cost of buying each policy individually.

An insurance broker who specializes in freelancer insurance policies can help you determine what coverages are right given your situation, and they’ll know what the best way to procure those coverages is.

3. Always Use Contracts

Nobody likes lengthy, wordy, legalese contract jargon, but it’s the stuff of sweet dreams and comforting reassurance if you find yourself with a nightmare client on your hands.

Many veteran freelancers swear by contracts, and for good reason. They protect both you and the client/customer by outlining exactly what services will be provided and what will be paid.

A professionally written contract for your services not only makes you appear more professional, it is a deterrent to would-be problem clients, who will be less likely to cause trouble if they’ve entered into the relationship with clear terms in place.

Should you ever find yourself up against a project with a bad-apple client, you’ll have a written contract in hand to help you quickly resolve any issues. Typically, a problem client will back down from an argument quickly when they come face-to-face with the agreed upon terms written in black and white.

You might already be using contracts if you work on a third-party platform, such as Fiverr or Upwork, which automatically provide built-in guidelines and rules as part of their service fee. If not, you’ll need to devise your own from scratch. Legalzoom offers affordable contract solutions for freelancers who want extra assurance.

Freelancing is a great way to experience professional freedom, and make a great living while you’re at it.

But remember:

The more business success you experience, the more you’ll have to lose. Take a moment and consider what you’ve got at stake, then get to work putting these three steps into action so you can ensure your continued status as an independent and free agent.

What’s in a BOP: Breaking Down the Business Owners Policy

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As a small business owner, you want the peace of mind to know your business is protected should an unforeseen accident occurs. But when you start to think about all the things that could happen, the roof leaking during a storm, a break-in in the middle of the night, a customer injuring themselves…it can be a bit overwhelming. But don’t worry, you can cover a large majority of your risk with your go-to policy as a business owner: business owners insurance (business owner, business owners insurance. We know, insurance people are not very creative).

A Business Owners Policy, also called a BOP or Business Owners Insurance, is kind of like the combo appetizer plate at your favorite restaurant. While you can always purchase each item by itself, the restaurant packages the most popular options together in the combo platter and typically sells it for slightly less than those items purchased separately. In the case of BOPs, most insurance companies group a number of specific types of coverages together in one package to provide the combination of coverage you need in a single policy.

What’s Covered in a Business Owners Policy?

But before anyone actually purchases the proverbial pu pu platter, they typically want to know what individual items are included to see if it’s worth it. Let’s take a look at those coverages that are included (and not included) in Business Owners Insurance.

1. Property Insurance

A commercial property insurance plan works similar to a homeowner’s plan. It protects the physical building and its contents. In some cases, the plan will cover damage or loss caused by anything. This is often referred to as a “special,” “all-risk,” or “open-peril” policy. More often than not, however, the policy is “standard,” meaning only damage and losses caused by specific named events are covered. For example, a policy might list fire, tornado, and vandalism as covered perils, but will exclude other events such as war acts of God.

You can also elect to insure only the contents if you don’t own the building. Much in the way a renter needs to insure their personal belongings but not the actual building (since that is insured by the landlord), a BOP can only list the business personal property of the company. Think of those items that you need to run your business; computers, stoves, ice cream machines, signage, etc. Whatever your equipment may be, your company relies on it to function smoothly and would be burdened if it had to replace that equipment out of pocket.

2. Business Interruption Insurance

Along with making sure your damaged property gets repaired or replaced, a BOP can include business interruption coverage (also called Business Income Insurance) to make sure you can keep paying your bills until you’re able to open for business again. If your clothing store has to shut down for repairs, will your rent bill shut down too? What about payroll to key employees continuing to work? Typically the answer is no. That’s why Business Income Insurance is so important to the success of small businesses. Business Interruption insurance is the financial interjection your company may need to make sure that the doors can stay open once reopened.

3. Liability Insurance

No matter what business you’re in, whether you’re a contractor, a florist, or a gym owner, there’s always some risk that the product or service you offered could cause someone harm. For example, a patron may burn herself on hot coffee, or a TV that has been professionally installed could fall on someone passing underneath. Not only does it protect your business against injury claims, it also covers property damage (not the same property as able, we’re talking about other people’s property). So if a server spills a tray of drinks on a customers brand new laptop, you’re covered. Where property insurance is your go-to for the things of your business, liability is your go-to for the actions of your business.

4. Optional Coverages

Although the first three are standard in business owner policies, some policies may also include things like flood insurance and crime insurance depending on your risk profile. We’ll look at just a few:

Cyber Liability – Do you handle and store customers data? You’re at risk for data breach. We’re not saying your security isn’t good, but if Target can get hacked, so can you. This coverage can help with the extra expenses of notifying your clients for the breach, hiring credit monitoring services to keep your eye on the outcome (if any), and providing defense if you’re sued by your customers.

Professional Liability – Do you offer professional services such as financial or legal advise, brokering transactions (such as realtors), and design/planning? You may need to include professional liability. This separate coverage from standard liability insurance protects your company should you be sued for any error or negligence during those professional services provided.

Hired/Non-Owned – If your company doesn’t own any vehicles and you don’t have a commercial auto policy for your business, this coverage is key to making sure your business is protected when vehicles are on the road for business purposes. Think about if you have to rent a car for a conference, or you send an employee out to make a bank deposit. Should there be an accident, your BOP will be able to help pick up the tab rather than your checkbook.

Employers Practices Liability – Let’s face it, unless you have a full-time HR director, keeping up with changing laws and regulations regarding employment is tough. EPLI helps protect your company against employment practice related claims such as wrongful termination, discrimination, wage violations, and harassment.

If your company has unique risks, you may also be able to incorporate some other less common protections, such as spoiled merchandise, mechanical breakdown, and even forgery coverage. Talk with your agent if to see which of these are included automatically and which can be added for your unique situation.

What’s Not Covered in a Business Owners Policy?

As mentioned earlier, many things can fall under the umbrella of a Business Owners Policy, but there are a few types of coverage your business will likely need to purchase separately. These include:

  • Workers Compensation Insurance – Coverage to you and your employees for work-related injury and illness.
  • Health and Disability Insurance – Coverage for you and your employees for injury and illness not related to their job.
  • Commercial Auto Insurance – Coverage to protect your company vehicles and any liability claims that may arise from an accident.

Who Needs a Business Owners Policy?

Business Owner Policies provide necessary protection to lots of organizations. Does your company own a building or business property? Is your company capable of being sued, even if the suit is frivolous? If you answer yes to both of those, you probably should have a BOP in place.

Where a BOP is the go-to for most businesses, some industries and professions are ineligible for this type of policy with most carriers. In that case you’ll either need to graduate to a commercial package policy (basically the same as a BOP, but with more flexibility in what endorsements can be added to the policy), or purchase the lines of insurance separately though your broker. Some BOP ineligible industries include non-durable goods manufacturing and heavy construction.

Get a Free Business Owners Insurance Quote

If you’re ready to explore your insurance options, Citizens General is here to support you. A new tool is available through The Hartford where you can not only quote BOPs, but your workers comp and commercial auto in as little as 10 minutes. Our brokers have been helping small businesses like yours for nearly a decade. We get to know your business and its risks, then find the best policies for your needs at the best prices. Let us help you secure your success; get your free no-obligation quote today.

General Contractors: Things You Should Be Collecting from Your Subcontractors

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If you’ve already started your own construction business, or are interested in starting your own business as a contractor in the near future, chances are you see the benefits of being your own boss. Being able to set your own schedule, decide which projects you want to bid and ultimately work on, and taking home those boss-sized paychecks are just a few of the pros to self-employment. But just because you want to own your own business doesn’t necessarily mean you want the stress of performing every aspect it takes to run that business. That’s a lot of hats, and the average sized head is not big enough to hold all of them.

Enter: Contractors. Or subcontractors, more specifically. Subcontractors differ from employees because these are the key guys (and gals) who have the specific training and know-how for those specialized tasks of your project, yet operate under their own business umbrella. Subcontractors are routinely the solution to providing specialized skilled labor, so you can delegate tasks and focus on the bigger picture. But as you award projects out to your construction subs, there are a few things you’ll need to make sure you are reviewing and collecting from them to stay in compliance with your own contractor insurance policies.

Step 1: Verify your Subcontractor is Properly Licensed

Does your state require contractors and artisans to carry a contractor license? Make sure your subcontractors are adhering to those requirements. Some states, such as California, only require a license of most tradesmen if they are performing projects greater than $500 in value. New Jersey, on the other hand, requires a license anytime a business or individual is engaged in home improvement or construction operations, regardless of the project size.

Double check with your state license board for the requirements of carrying a license. Chances are that if you’re required to have one, they are too. Also review the license board to verify the license is current and active. A sub may provide a license number, but if it’s suspended or expired, that means they aren’t compliant. If you are hiring unlicensed subcontractors, you run the risk of incurring fines from the state and being out of compliance with your insurance, which could be grounds to deny a claim if one should arise.

Step 2: Standard Subcontractor Agreement

Having subs complete a standard work contract is the first step toward bringing them onto your project. This not only good practice, but is often required by your own general liability insurance carrier.

A standard work contract for your subcontractors should outline the scope and length of the project, description of work performed, terms of payment, and what happens in the event of a suit or claim. It also outlines the insurance you require them to carry in order for them to step on the site. If you’re not already in the practice of having your subcontractors sign a standard work contract, it’s never too late to start now.

There are a few things your insurance carrier will typically require you to ask of your subs:

* Limits of insurance coverage equal or greater than your own. This makes sure that they have the adequate amount of coverage for the project so their carrier(s) can cover any loss in the event of a claim.
* A hold-harmless agreement, or an indemnity clause. An indemnity clause protects you against any legal action taken against you from a third party based on the actions of and work performed by the subcontractor. This way you or your insurance carrier doesn’t incur the expense of a claim when it’s someone else’s fault.

Step 3: Receive a Certificate of Insurance

Collecting a certificate of insurance, or COI, from your subcontractors is arguably equally as important as having them sign a contract. This is your “proof” that they have the insurance coverage you require in your contract. Just like the subcontractor contract, your carriers require you collect this COI and keep it on file. Proof is in quotations because, unfortunately, that piece of paper is just a piece of paper at the end of the day, so you should always follow up with the agency listed on the form to verify the insurance.

There are two main insurance policies you should always require your construction subs to list on the certificate: General Liability and Workers Compensation.

Verify your Subcontractor has General Liability insurance
Should a claim arise from the work your sub is performing on the project, you’ll want to make sure they have the insurance to cover the damages. You don’t want a claim to hit your insurance for work you didn’t actually perform. The indemnity in the subcontractor agreement[c] holds you harmless for the work of the subcontractor; making sure they have the insurance to cover a claim is your peace of mind.

Also, make sure their general liability insurance lists you as an additional insured. If the claim does trickle up to you and a homeowner / property manager wants to file a claim on your insurance (since you are top dog on the project), being additional insured means that you can use the subcontractors insurance as coverage instead of your own, further protecting your company from claims. This works to keep your insurance premiums as low as possible by maintaining a clean loss history with your carriers.

Verify your Subcontractor has Workers Compensation insurance
This is similar to verifying your subcontractor carriers general liability because you’ll want to make sure that if the subcontractor is injured on the job, they have their own coverage to pay against those injuries, rather than coming after you. Think your workers comp carrier will deny the claim if a subcontractor without insurance tries to file a claim on your workers comp? He’s a sub, there’s no coverage right? Not so fast….

Workers Compensation policies will cover all individuals hired by your company, whether they are W-2, subcontractors without workers compensation coverage, or that guy you hired for the day. Collecting a certificate showing a comp policy before the sub starts work is your assurance that if something goes awry, they won’t need to look to you to pay the medical bills. Verifying the coverage first is much easier than trying to find insurance at renewal with a claim on your policy.

Whether you’re hiring a subcontractor to paint the sheetrock you just hung on the wall, or to roof that new room addition on a custom home, priority number one will always be to protect you and your company. Refer to your own policies to see if there are any other requirements your carriers are mandating for your subcontractors. And always remember that if you have any questions feel free to reach out to contact us at Citizens, and we’ll be happy to help you navigate hiring subs.Construction Insurance

Contractor Insurance Checklist

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Contractor insurance can cover just about every aspect of your trade, protecting you, your business, and your assets from unexpected (and costly) events. From an unintended auto accident to an unhappy customer or an injured employee, contractor insurance defends against the risks that could permanently put you out of business.

Because every accident, incident, and act of nature is an opportunity for a lawsuit or monetary loss that could bring down everything you have worked so hard to build.

Contractor Insurance Checklist for General and Subcontractors

Whether you’re a general contractor, subcontractor, or construction business owner, your investment is at risk. One single accident or incident could cost you everything.

Luckily, you can easily defend your construction business with the right insurance coverage. So you can keep blazing ahead, building your future.

Use this checklist to find the contractor insurance policies that you simply can’t afford to ignore.

General Liability

In today’s litigious society, any small accident or incident could result in a lawsuit. Which is why general liability insurance should be the foundational policy of any contractor insurance coverage.

General liability protects you from third-party lawsuits in the event someone has experienced injury, bodily damage, or property damage as a result of your business.

The legal costs for litigation averages anywhere from $3,000 to $150,000, according to a 2005 SBA report.

A general liability policy for your business can cover the costs of a lawsuit that could cost your business in legal fees, lawyer’s fees, settlements, judgements, and even the high price of business interruption. When you have general liability coverage, your out of pocket expenses are typically the cost of your deductible — far less than the cost of litigation.

Inland Marine

The equipment you invest in doesn’t stay in one spot. Protect your mobile tools and equipment with inland marine insurance.

As you move your tools and mobile equipment from one project site to the next, the risk for damage or loss increases. Luckily, inland marine coverage goes where your equipment goes. Like the power tools you take to the construction site.

Workers’ Compensation

Do you use subcontractors to get the job done or do you have employees? Even a single, part-time worker could mean you need workers’ compensation insurance.

The construction industry is a high-risk one. Your employees are more at risk for illness or injury than the barista who made your coffee this morning. A slip, fall, or other accident could mean lost wages and costly medical bills for your employees.

Workers’ comp protects your employees from the high costs of medical treatment and lost wages in the event they’re injured or become ill while performing their job. Providing workers’ comp insurance is not only the right thing to do for your employees, in most states it is also required by law.

Commercial Auto

A contractor’s vehicle has many roles to fill. It’s a satellite office, a break room, a tool shed, and an equipment transporter. Your work truck (or van or suv) may even pull double-duty as your personal vehicle during the weekend; towing your family boat, picking up groceries, or taking the little league team out for ice cream after the game.

But don’t expect your personal auto coverage to work as hard as your truck does.

If you’re involved in an accident or have an auto claim while using your vehicle for business purposes, your personal auto coverage generally won’t cover it.

You’ll typically need commercial auto if you want to cover:

  • Autos used primarily for business purposes
  • Autos that are registered or leased to your business
  • Autos that your employees are driving

Don’t rely on personal auto insurance to protect your work autos from the risks of the road; commercial auto insurance is an important policy for contractors who spend more time out in the field than sitting in an office.

Commercial Property

Do you own or rent the building your construction business uses for your day-to-day operations? Either way, commercial property insurance is your key to defending it.

  • If you rent, commercial property can protect the stuff that’s inside your building, such as equipment, furniture, materials, and supplies.
  • If you own, commercial property can protect the building itself as well as the stuff that’s inside it.

No one ever plans for a fire, busted pipe, storm damage, theft, or vandalism. But with commercial property, you won’t have to pay the price for damage or loss to the place and things you need to operate.

Tip: Running your construction business from home? Even home-based businesses need a little extra property coverage. A standard homeowners insurance policy won’t always fully cover the business tools and equipment that you’ve got at home. Ask your insurance professional about a rider to your homeowners policy to protect your business investments.

Builders Risk

This one’s for the general contractors. A builders risk insurance policy protects your investment in a project during the course of construction, which is why it’s also referred to as a course of construction policy.

If a fire broke out on a residential project and destroyed the work you had already completed, as well as some valuable tools kept onsite and materials you’d already purchased, builders risk would be there to help you recoup your loss.

Builders risk policies are typically project specific and written on a 3-month, 6-month, or 12-month term. The coverage remains with the project until construction is completed.

Tip: There are any number of parties with an “insurance interest” in a project – including subcontractors, engineers, or anyone else who could lose out on labor, materials, supplies, and potential profits if there was a loss during construction. Builders risk policies are generally obtained by a project owner, developer, or general contractor who will list anyone with an insurable interest as a “named insured.”

General contractors should consider this policy as part of their contractor insurance checklist, but subcontractors should remember that they’ll want to be included as a named insured on any builders risk policy taken out by a general contractor or project owner.

Umbrella Coverage

Extra coverage is often overlooked but an umbrella policy could be one of the most important contractor insurance policies available. Umbrella insurance is there to protect you in the event of a claim that exceeds your policy limits.

Imagine the worst case scenario. An accident leads to severe third-party injuries and a lawsuit. The final result is a million dollar claim for court costs, judgements, and medical bills against your general liability policy. Your policy limit is only $500,000. Which means you’re left footing the bill for the other half a million.

Umbrella insurance can be applied when a covered claim exceeds the limits of an eligible underlying policy, like a general liability policy.

In the example above, your general liability policy would cover the million dollar claim up to its limit – $500,000 — and then your umbrella insurance would kick in to cover the remaining half a million dollars.

And all you’ll be responsible for is the cost of your policy deductibles.

How many of the above business insurance policies do you currently carry?

Chances are, you may have just discovered some holes in your contractor insurance defense plan. When you’ve worked hard to build up your construction business you want to protect it completely. Compare this checklist to your current insurance protection. If you’re missing any of the policies listed above it may be time to fortify your defenses so you can keep building your business without worry.

Contractor Insurance Auburn, CA

Commercial Liability Insurance Coverage in 3 Easy Steps

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Have you been wondering how to get commercial liability insurance for your business? No matter what product or service your provide, commercial liability coverage is the foundation of insurance protection, keeping your assets where they belong – in your business bank accounts.

As a business owner, you know the threat of a lawsuit is real. One small incident or accident can lead to big trouble.

What are your chances of your business facing a lawsuit? With over 100 million cases filed in US state courts every year, the chances of your business being sued are good. And that’s bad news for business owners, when even something as small as a slip and fall accident can cost you an average of $20,000.

For many small businesses, coming up with that kind of cash could be devastating.

That’s why commercial liability insurance can benefit you, no matter what your business is or how you operate it.

Commercial liability insurance covers your business from the costs of lawsuits arising from:

  • Third-party injuries
  • Third-party property damage
  • Product liability
  • Advertising injury (libel, slander, and defamation)
  • Copyright infringement

 

Lawyers’ fees, court costs, settlements, and judgements can add up quickly, whether you are at fault or not. Your commercial liability (also known as business general liability) policy will cover these costs, so you don’t break the business bank trying to pay them yourself.

Every day that you operate without liability coverage, you are running the very real risk of having to pay the high costs of a lawsuit yourself. Luckily, you can get your business covered quickly, so you can rest easy and focus on the important things: like growth and profitability.

How to Get Commercial Liability Insurance

Follow these three easy steps, and you will be covered before you can say “low annual premiums.”

Step 1: Get an Instant Online Quote

An insurance quote will be an estimate of how much total insurance coverage you’re getting, and what that will cost you in annual premiums. If you would like any extra coverage added to your policy, you can get a price estimate for those “riders” at the same time.

Getting a quote is fast and easy.

Fill out a few simple forms with information such as your name, and the state in which you do business, and you will receive your quote via email. Give your quote a quick review, and then you’re ready for step #2.

Step 2: Complete Your Application

Once you’ve reviewed your quote, it’s time to complete your application for coverage. Don’t worry, we know that you are busy, and we don’t expect you to take the day off to come to our office. Instead, we bring the application to you. You can complete an application online at Citizens General, or over the phone with one of our in-house professionals.

If you do speak to one of our agents in person, feel free to ask about other options available to you to increase insurance protection for your business. You may even get some ideas on how to lower your insurance premiums, so don’t hesitate to pick up the phone. No time to chat? No problem. The online application can be filled out on your time, and submitted when you are ready.

With general liability coverage, you won’t need to chase around paperwork all day just to complete your application. If you live in a state where a contractor license is required, we will need that information. If you have any prior losses, we’ll ask for a loss runs report from prior carriers. If neither of these situations applies to your business, your application process will go even faster.

When your application is complete, it’s time to move to step 3.

Step 3: Sign and Submit Payment

Your completed application will be sent to an insurance carrier for approval, and then we will get you a bit of paperwork to sign. Once again, we know that you have a business to run. That’s why Citizens General makes it easy to sign your documents and submit payment. With our Docusign process, you can sign your documents electronically from the comfort of your home office, your bustling warehouse, or from a tablet in an airport. We will work with you from wherever your business needs you to be.

Once you have submitted your signed documents and payment, everything is sent off for processing on our end, and you don’t need to do anything more. Congratulations, your business has a safety net, and you can stop worrying about a potentially devastating lawsuit ruining everything you’ve created.

You have Liability Coverage. Now What?

Business general liability coverage can protect you from third-party lawsuits for injury and damages to someone’s person, property, or even reputation. But it doesn’t cover professional errors, employee injuries or discrimination suits, fraud, cyber theft, accidents with your work vehicle, or damage to your business property.

If there are other business risks that keep you up at night worrying, you may want to consider additional policies to fully protect your business investment. Combining additional business insurance policies to your general liability policy is not only a great way to further protect your business, it’s also an easy way to save on your premiums. Here are some other policies you may want to consider:

Workers’ Comp: If you have employees, workers’ comp insurance benefits can pay for their medical expenses and missed wages if they are injured or become ill while working.

Professional Liability: Service professionals can protect themselves from the high costs of defending against third-party financial loss lawsuits with professional liability coverage.

Commercial Auto: If you, or any of your employees, drive a vehicle for business purposes, you may need commercial auto to cover your vehicles in case of an accident.

Commercial Property: Commercial property coverage is meant to protect the building that your business rents or owns, as well as the stuff inside it, in the event of a fire, theft, damage, or vandalism.

Cyber Liability: If you handle sensitive customer information, including Social Security numbers or credit cards, you could be a risk to a data breach or hack. Cyber liability may cover the costs of notifying customers, credit monitoring, or your defense against an identity theft lawsuit.

Business Interruption: Business interruption claims are generally more expensive than property damage claims. Business interruption coverage may cover the costs of inventory held-up across the country, or even business lost while you are spending time defending yourself against a lawsuit.

Whether it is a stand-alone commercial liability policy, or if commercial liability is just the foundation of your protection, getting this essential coverage is a quick, easy, and convenient process. Get your quote today, and you can be covered in no time at all.

Not sure exactly what policies your business needs? Check out our business insurance tool to get a quick, individualized assessment of the insurance policies that can best protect your business.