The construction industry is diverse and changing, and insurance needs reflect this dynamic environment. General coverage may no longer be enough given these unique professional liability requirements. As you’re evaluating insurance options, here are three factors that could affect your contractors professional liability application.
Firm’s Operational Structure
Elements of your operational structure could affect insurance requirements. Risk management strategies such as employee training’s, professional association memberships or policies for mold inspection and mitigation could help lower insurance costs. In contrast, joint-venture or sub-contractor exposure could require additional coverage beyond a general policy.
When you complete a contractors professional liability application, you’ll have to provide some revenue details. The breakdown between design, consulting, construction, construction management and other categories could influence the level of coverage needed.
Type of Work
Different construction projects could require different coverage levels. The coverage needed for building a highway is likely to vary from that of a hospital or a skyscraper, for example. Exposure to pollution liabilities could also affect your policy.
Just as no two companies are identical, no two insurance policies are likely to be identical. The process of completing a contractors professional liability application may seem lengthy. However, accurately answering the questions can help you obtain the best coverage for your business’ individual requirements and potentially protect you from legal and financial risks down the road.