Normally, it is difficult for general contractors to work without general insurance. General contractor liability insurance is intended to guard operators and owners of companies from claims that may come from a broad spectrum of sources. These exposures could be just about anything, including liability engendered by accidents from the operations of the insured party, contractual liability, products manufactured by the insured party, etc.
The liability you select, whether it is one, two, or three million dollars, determines the cost of general contractor liability insurance. Also factored into the rates the rates are the kind of work undertaken, gross receipts and total payroll expenses. Similar to auto insurance, when it comes to general contractor liability insurance, you will first have to make a down payment and then follow it up with installments. Before buying general contractor liability insurance, it is best to compare the quotes available in the market.
It is the general contractor’s job to make sure that the people working under him are covered by an insurance policy. If for example, a person who is not a part of the project gets injured, the injured person’s lawyer can target just about anyone involved in the project. The more individuals that are involved, the greater the chances of a successful lawsuit.
The General Contractor will have to make sure that all his subcontractors have general liability insurance. If they have the necessary insurance the liability exposure, and the insurance rate, is distinctly reduced. Generally, the subcontractor is not considered an employee; he is an independent worker. So, the contractor is not liable for his subcontractor’s mistakes. Still, a lawyer worth his salt can find ways to charge anybody working on the project with negligence. Thus, liability insurance for everyone becomes imperative.
By: Steve Valentino
Perhaps you are wondering why you need to have insurance. After all, you may be young and healthy, so why pay the money for an insurance policy? The answer to this question varies depending on the type of insurance your considering, but as a whole insurance is an important part of your financial plan.
First, some types of insurance are required by law or by lenders. If you have a mortgage, for instance, your lender will require you to have homeowners insurance. Lenders and state laws require auto coverage as well. For this reason, you really do not have a choice about purchasing auto insurance.
Insurance protects you from the things that you cannot anticipate. Accidents, natural disasters, or unexpected illnesses can strike without warning. The medical bills, repair bills, and other expenses caused by these events could wipe out your finances completely. Consider, for instance, if your home were to catch on fire. If you did not have insurance, you would have to pay for all of the repairs and replace all of your belongings out of your own pocket. Chances are you do not have this type of money.
Health insurance is one of the most common types of insurance to ignore, particularly for those who are in good health. Health insurance is expensive, but if you end up with cancer or some other devastating illness, you will not be able to afford the necessary treatment without health insurance. Cancer treatment, for instance, can cost millions of dollars. Without insurance, you would not be able to get access to the treatment that could potentially save your life.
Life insurance is another product you may not want to purchase. However, if you die without it, those you leave behind will have to pay thousands of dollars for your funeral expenses. You can purchase a small policy for an affordable price and be able to protect your loved ones after your death. As you can see, insurance is important for a variety of reasons, and living without it is a dangerous gamble that you should not make.
By: Cary Bergeron
As you shop online for the best auto insurance deals you may begin to ask yourself what exactly is required by law when it comes to auto insurance. Fortunately this article outlines the auto liability insurance state minimums that you are required to have in order to legally drive in the United States. No matter what state you drive in all of them have financial responsibility laws and require motorists to purchase minimum amounts of auto liability insurance except for Tennessee, Wisconsin and New Hampshire.
Many websites and advocates of insurance (to include myself) recommend having a minimum of $100,000 for bodily injury protection per person and at least $300,000 for property damage costs and physical injury costs. The main reason for this is due to the increased amount of money needed to rectify an accident is usually more then what the states declare as the minimum amount of insurance coverage needed.
I have compiled the following information from the American Insurance Association, the Property Casualty Insurers Association, and the Insurance Information Institute. It shows the auto liability insurance state minimums as required by each state. In order to understand the numbers you must know what the mean. The first two numbers are for bodily injury liability and the third number represents the minimum amount of property damage liability.
As an example my home state of Missouri shows the following – Missouri 25/50/10. This means Missouri requires as a minimum coverage up to $50,000 for all persons injured in an accident, subject to a limit of $25,000 for one individual, and $10,000 coverage for property damage.
Alabama 20/40/10 Alaska 50/100/25 Arizona 15/30/10 Arkansas 25/50/25
California 15/30/5 Colorado 25/50/15 Connecticut 20/40/10 Delaware 15/30/5
D.C. 25/50/10 Florida 10/20/10 Georgia 25/50/25 Hawaii 20/40/10
Idaho 25/50/15 Illinois 20/40/15 Indiana 25/50/10 Iowa 20/40/15
Kansas 25/50/10 Kentucky 25/50/10 Louisiana 10/20/10 Maine 50/100/25
Maryland 20/40/15 Massachusetts 20/40/5 Michigan 20/40/10 Minnesota 30/60/10
Mississippi 10/20/05 Missouri 25/50/10 Montana 25/50/10 Nebraska 25/50/25
Nevada 15/30/10 New Hampshire 25/50/25 New Jersey 15/30/5 New Mexico 25/50/10 New York 25/50/10 North Carolina 30/60/25 North Dakota 25/50/25 Ohio 12.5/25/7.5
Oklahoma 10/20/10 Oregon 25/50/10 Pennsylvania 15/30/5 Rhode Island 25/50/25
South Carolina 15/30/10 South Dakota 25/50/25 Tennessee 25/50/10 Texas 20/40/15
Utah 25/50/15 Vermont 25/50/10 Virginia 25/50/20 Washington 25/50/10
West Virginia 20/40/10 Wisconsin 25/50/10 Wyoming 25/50/20
Remember these figures only represent auto insurance liability state minimums. Many experts agree that more insurance is needed in order to fully protect yourself in the event you’re involved in an automobile accident.
By: Tim Gorman