Liability, Commercial Auto, Umbrella, and Workers Compensation Are Vital Coverages For Demolition Co
Insurance needs for demolition contractors do not differ that much from those needs of their counterparts in the contracting business, with some dissimilarities. Special attention is given to the safety methods that contractors use to avoid any likely harms to the people and workers. Demolitions contractors need commercial general liability, business auto insurance, property and contractors tools, workers compensation to cover employees, as well as umbrella.
Commercial General Liability for Demolition Contractors
This coverage is necessary to provide protection for bodily injuries and property damages that are brought about to other people due to the negligent acts of the contractor or its workers. The commercial liability coverage also gives protection for advertising and personal injuries that resulted from the acts of the contractor, its officers or the work force of the contractor.
Amount of coverage varies from $300,000 to $1,000,000 each occurrence with double that amount for the general aggregate. Most contractors choose the maximum limits because of the higher protection, little difference in the premiums between the highest limits and lowest limits, and because many establishments that hire demolition contractors do not accept less than $1 million each occurrence.
Underwriting information needed by insurance companies is not the same needed from other contractors. In demolition contractors cases, insurance carriers focus more on safety standards taken by the contractors during the demolition process. The following is important information needed by most insurers, and will determine not only charges but also eligibility for insurance:
1. Scope and nature of demolition business. Also, if the contractors are involved in other activities that can put them in much higher risk.
2. Prior experience including insurance history and prior claims.
3. Nature of demolished objects including procedures of demolitions, use of demolition apparatus, use of explosives, and maximum height of structures demolished.
4. Safety guidelines used to reduce any harms to the public. Particular concern is given to demolishing buildings that contain asbestos and or PCB's. Also, questions related to whether or not the contractors have guidelines about getting written confirmation that all utilities are turned off prior to demolition is very important.
Premium of general liability insurance for demolition contractors is determined by the size of the contractor. This size is normally measured by annual payroll of the contractors and/ or their yearly receipts. Request for certain riders and endorsements may also multiply the insurance rate.
Coverage for Contractors Property, Equipment and Tools
Demolition contractors may also need to cover their own tools, demolition machine, office equipment and their building if they own it. The premium is determined by the nature of the property, age of property and the amount of coverage.
Commercial Auto Insurance
For contractors that own motorized vehicles, commercial auto insurance may be crucial. Price of insurance is based on garaging ZIP code, age and driving history of drivers, weight and use of business vehicles, and amount and type of coverage.
Contractors Workers Compensation Insurance
Coverage for workers compensation is a legal and mandatory requirement for all payroll paying businesses. The rates are based on 'estimated wages' for the staff for the next year, class codes of workers, and amounts of insurance.
Contractors Umbrella or Excess Liability Insurance
This insurance may be required for many contractors, especially the medium to large size contractors. The coverage gives extra liability coverage on certain underlining policies (listed above) above and beyond their limits. Aspects affecting prices of umbrella coverage include forms of the coverage and limits of excess insurance.
There are many competing insurers providing coverages for demolition contractors. Each insurer may use different criteria to approve or disapprove an applicant. Most standard and preferred insurance carriers have no desire for this class of business. For that reason dealing with an independent insurance adviser may be more helpful than dealing with a captive insurance representative.
Commercial General Liability for Demolition Contractors
This coverage is necessary to provide protection for bodily injuries and property damages that are brought about to other people due to the negligent acts of the contractor or its workers. The commercial liability coverage also gives protection for advertising and personal injuries that resulted from the acts of the contractor, its officers or the work force of the contractor.
Amount of coverage varies from $300,000 to $1,000,000 each occurrence with double that amount for the general aggregate. Most contractors choose the maximum limits because of the higher protection, little difference in the premiums between the highest limits and lowest limits, and because many establishments that hire demolition contractors do not accept less than $1 million each occurrence.
Underwriting information needed by insurance companies is not the same needed from other contractors. In demolition contractors cases, insurance carriers focus more on safety standards taken by the contractors during the demolition process. The following is important information needed by most insurers, and will determine not only charges but also eligibility for insurance:
1. Scope and nature of demolition business. Also, if the contractors are involved in other activities that can put them in much higher risk.
2. Prior experience including insurance history and prior claims.
3. Nature of demolished objects including procedures of demolitions, use of demolition apparatus, use of explosives, and maximum height of structures demolished.
4. Safety guidelines used to reduce any harms to the public. Particular concern is given to demolishing buildings that contain asbestos and or PCB's. Also, questions related to whether or not the contractors have guidelines about getting written confirmation that all utilities are turned off prior to demolition is very important.
Premium of general liability insurance for demolition contractors is determined by the size of the contractor. This size is normally measured by annual payroll of the contractors and/ or their yearly receipts. Request for certain riders and endorsements may also multiply the insurance rate.
Coverage for Contractors Property, Equipment and Tools
Demolition contractors may also need to cover their own tools, demolition machine, office equipment and their building if they own it. The premium is determined by the nature of the property, age of property and the amount of coverage.
Commercial Auto Insurance
For contractors that own motorized vehicles, commercial auto insurance may be crucial. Price of insurance is based on garaging ZIP code, age and driving history of drivers, weight and use of business vehicles, and amount and type of coverage.
Contractors Workers Compensation Insurance
Coverage for workers compensation is a legal and mandatory requirement for all payroll paying businesses. The rates are based on 'estimated wages' for the staff for the next year, class codes of workers, and amounts of insurance.
Contractors Umbrella or Excess Liability Insurance
This insurance may be required for many contractors, especially the medium to large size contractors. The coverage gives extra liability coverage on certain underlining policies (listed above) above and beyond their limits. Aspects affecting prices of umbrella coverage include forms of the coverage and limits of excess insurance.
There are many competing insurers providing coverages for demolition contractors. Each insurer may use different criteria to approve or disapprove an applicant. Most standard and preferred insurance carriers have no desire for this class of business. For that reason dealing with an independent insurance adviser may be more helpful than dealing with a captive insurance representative.
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