Replies

1. 
   FrankB89 | May 10, 2003 04:01am | #1

   In Oregon (my state), and many others, the minimum for a GC is $500K and for a Limited $250K.  But here, it's required for the contractors license, along with a bond of $15K for GC and $10K for Limited.  And those figures go up when you get into larger projects.

   And the liability is NOT to cover the value of your project...it's to CYA in case you leave stain-soaked rags in a bucket and burn the house down, or drop a load of trusses on the clients 1936 Silver Shadow or accidently fall off the roof and fall on his wife.  So regardless of the size of your project, the level of your liability insurance should cover your potential exposure.

   Your state or local licensing bureaucracy should be able to answer your question.  Each state seems to have their own requirements.

   Welcome to the world of increasing overhead!

    

2. 
   Piffin | May 10, 2003 04:04am | #2

   It is definitely time!

   Customers actually let you on their property without it?

   Size of policy is proportionate to risk.

   risk #1

   ladder or a bundle of shingles falls and bops the homeowners son's girlfriend on the head, wounding her and making a scar on her previously beautiful face. She was a model before you ruined her career. Judge orders you to pony up to replace her income for the next ten or twenty years.

   That's only a million or two because she wasn't a known celebrity...

   Buy medical of at least a million

   Risk #2

   You forget to unplug all your tools at night and one of them starts a fire, burning the house down.

   If you typically work on $250,000 houses, get $500,000 of coverage to cover contents as well. If you work on bigger places, get enough to cover the high end.

   risk #3

   You are installing a simple skylight in a condo building. It blows out in a freak storm the very next day and the coincidental evidence that you failed to properly install it is overwhelming to the point that you doubt your self.

   not only that, but the resultant rain pouring through from the same storm flooded this condo unit AND the one below it on the next level down. That tenant was a collector of fine art. A couple pieces of his collection got ruined. what is the possible extent of your liabilities for two condo units and a few rare art pieces?

   Buying a whole lot more ccoverage is only a tiny bit more expensive than buying a base policy but it does two things for you.

   It gives you credibility with customers.

   It puts a larger part of the responsibility for defense on the insurance company.

   .

   Excellence is its own reward!

3. 
   kostello | May 10, 2003 11:29am | #3

   well i just renewed mine yesterday.

   to cover me and 1 other £1000000 liability and tools to the value of £8000.

   cost£600.

   the main aggrivation was the tool cover. no insurer wants to touch it in the uk as tools are getting stolen all the time.

    i think insurance is more for the clients peace of mind rather than yours.

   aleks

1. 
   Edgar76b | May 16, 2003 05:09am | #4

   Something I don't remember being told when I got insurance, But was told afterward by my agent. Just thought i might mention. Its nothing out of the ordinary, But something to know. If you should ever consider going out of buisness. It is important to keep your insurance for an additional year. It's called a continuing operations policy. which is a little different, But don't worry, They figure out how to charge you the same amount. It covers all work that has been done up to that point until the warrenty runs out. A year later. Im not saying its a bad thing, just somthing to keep in the back of your mind. When you go out of buisness your still paying for it.

   Where there's A wheel there's a way, got any wheels?

1. 
   CDN_Builder | May 16, 2003 05:23am | #5

   I was told that once you have it, never lose it or your rates will skyrocket, and thats if you can get signed on again.

   Especially now, we are in an undesirable market and many of the insurance companies are in what they call a "holding pattern". At least in my area.

   Just curious as to what everyone pays.

   $860 per year CAD; 1mil liability

1. 
   steve | May 16, 2003 05:11pm | #6

   i carry 2 mil liability and full replacement cost on tools(20 thousand)

   cost me 760 a year (cdn)

   dont know if the rates change according to what you do though

   my risk is probably pretty low being a cabinet/counter top guy

1. 
   Turtleneck | May 21, 2003 07:17am | #8

   Steve. Where are you at? I pulled what I thought was a good deal 1m + 10k tool coverage for $713 and they recently hit me for another 30 bucks (no explanation) I'm in Calgary and am insured with Wawanesa. Turtleneck

    

2. 
   steve | May 21, 2003 01:44pm | #9

   turtleneck; im in sarnia ontario and i del with cooperators

   steve

3. 
   Turtleneck | May 22, 2003 07:29am | #10

   Thanks Steve, my better half has family in Sarnia.

   Keep yer stick on the ice... Turtleneck

    

4. 
   steve | May 22, 2003 01:34pm | #11

   really!, whats the name, i know lots of people here, lived here for 23 years

4. 
   luvmuskoka | May 21, 2003 04:38am | #7

   I'm just a floor guy. 1M coverage costs me $660 a year.

   Ditch