In our opinion, as Construction Insurance Advisors, and members of The California Building Industry Association and the National Association of Remodelers, getting Online Quotes for insurance can make sense for Life Insurance or Auto Insurance. However, contractors that hop online and generate their own General Liability quotes, without a consultation from a licensed Business Insurance Advisor can be disastrous and potentially very costly when and if the policy purchased online doesn’t provide coverage when a claim is made.
It is sad but true, most contractors simply look at the Cost of Insurance and do not take the time to review the exclusions in their insurance policy. Exclusions are the term insurance companies use when their policy does not provide coverage for a claim.
The NEXT Commercial General Liability policies we have reviewed have over 10+ pages of Exclusions and details as to what they will not cover. 2 relevant and important examples that impact California Contractors include a dedicated page on how and when they Exclude work with Condominiums, Townhomes, Timeshares, and Tract homes. This is a pretty significant exclusion and most contractors with a NEXT policy are not aware of these exclusions. Source: Page 66 of the Specimen Commercial General Liability policy.
Another important consideration is that most drywall work in the U.S. is foreign manufactured and NEXT has a dedicated page outlining how they Exclude claims where non-U.S. Drywall is used in a construction project and a claim is made. Source: Page 65 of the Specimen Commercial General Liability policy.
The bottom line and our recommendation in shopping for and purchasing a Commercial General Liability policy is to ask your construction insurance broker to review what is Excluded in the policy and make sure that you do not plan on doing any work that is excluded. NEXT does offer some quality insurance products at an affordable price. Just be sure to know the details as to what you are buying.
The good news is that there are several General Liability Insurance companies that provide affordable insurance solutions for the construction trades. Your insurance broker just needs to know where to go to get these options as not all brokers have the same access, so it pays to shop and compare!
If you would like a complimentary insurance review and free consultation on your most affordable options and options that will properly protect you and your business, give us a call! The Contractors Resource Center has been serving California Contractors with their Legal, Financial, and Insurance needs for over 15 years and we are Board Members and Insurance Advisors to the California Building Industry Association and the National Association of Remodelers.
For your free quote and consultation contact Kevin at: 530.320.3617 or email [email protected]
Or, you can CLICK HERE now and start the process!