Arkansas Contractor Insurance

• Business Name
• Business Address
• Type of contractor
• Contractor license (if applicable)
• Employee payroll
• Sub-contracting costs

Once we have that information we can get started!

Types of Contractors we Insure

• General Contractors
  
• Roofers
  
• Farmers
  
• Painters
  
• Landscapers
  
• Carpenters
  
• Plumbers
  
• Masonry
  
• Electricians
  
• Flooring
  
• HVAC
  
• Site Cleanup

General Liability Insurance Coverage

Each Occurrence – Coverage levels $300,000 to $2,000,000

The occurrence limit is the primary coverage for Bodily Injury and Property Damage that occurs on the job site. For example, a subcontractor leaves a board with a nail sticking up and someone other than the works step on it and has to go to the hospital. The contractor may be held legally liable and subject to pay damages. This is where the insurance would step in to help settle any financial loss. It is important to remember if you are working on a General Contractor (GC) he/she will require insurance limits equal to theirs and be named as Additional Insured (more to come on Additional Insured and Waiver of Subrogation)

General Aggregate – Coverage levels $300,000 to $2,000,000

The Aggregate is the most that the insurance company is willing to payout in any given policy period. If you have occurrence limit of $300,000 and a General Aggregate of $300,000 then the most the insurance company is legally obligated to pay for the policy period is $300,000.

Products and Completed Operations Aggregate – Coverage levels $300,000 to $2,000,000

A contractor’s completed operations coverage takes effect when the contractor’s work and/or the project has been completed. There can sometimes be disagreements as to the actual time of work completion. Essentially, time of completion is defined as follows:

When all of the contractor’s work as laid out in the contract has been completed
When all of the contractor’s work to be done at the job site location has been completed, if the named insured’s contract calls for work at more than one location
When that part of the contractor’s work done at the job site has been put to its intended use by any person or organization, other than another contractor or subcontractor, working on the same project

Personal and Advertising Injury – $300,000 to $10,000,000 Policy Limits Available

The insurance company provides coverage for liability arising from personal and advertising injury, such as damage to a third party’s reputation.

Fire Damage Legal Liability – $50,000 to $300,000 Policy Limits Available

This is a separate occurrence limit that provides coverage for a fire-related damage that the contractor was held legally liable for the damage.

Medical Expense – $1,000 to $10,000 Policy Limits Available

Offers coverage for non-employees that were hurt on site and require medical attention. Medical Expense does not offer coverage for hired employees or sub-contractors. That type of coverage would be offered under Workers’ Compensation Insurance.

Other Coverage Options

• Workers Compensation
• Commercial Auto Insurance
• Inland Marine/Equipment Floater
• Performance Bond
  
  

Additional Insured & Waiver of Subrogation

As construction booms, and the litigious nature in which you operate in grows, requirements for obtaining jobs are becomes more stringent. As these requirements become a more regular requirement, we are often asked about what these coverages mean, how they impact the policy, and what they cost. Below we will dive a little deeper into these options.

Additional Insured

This is quite often the first coverage that is required. It may be the general contractor who requires it, the property manager/owner, or another third party with an interest in the project. We recommend all our general contractors require this of their subcontractors to make sure they are protected. So, what is an additional insured? It is an amendment to the policy that extends the liability protection on the policy to the interested party. Because of the amendment to the policy, it will notify the additional insured of a cancellation on the policy that would expose them to a greater liability exposure.

Because of its impact on the policy (broadened liability), there is a cost associated with it. Typically starting and $50, although depending on the carrier it could be as high as $150. One way to protect yourself, and the cost, would be to add a blanket additional insured endorsement. This would be a one-time fee on the policy and would provide the additional endorsement to anyone required by contract. If you are a contractor that requires several additional insureds the blanket option can be the most time and cost-effective option. This would a decision that your agent can help you make based on the specific policy and prices.

A requirement we are seeing more frequently, this is another amendment to the policy protecting the party requesting it. The first step to this coverage is defining subrogation. Subrogation allows your insurance company to recoup damages from the responsible party. For example, you have the commercial truck parked on the job site and someone else backs into the truck causing damage. To get things moving quickly, you file the claim on your own policy to begin repairs and then let your insurance recoup funds from the at fault party. With a waiver of subrogation, the insurance company is unable to recoup the damages from the at fault party.

A waiver of subrogation is often required to protect the interested party against claims. For example, you are doing plumbing in a home and while up in the attic an employee falls through the ceiling due to a rotten board. The claim would be filed against the workers compensation, and then the company would subrogate after the homeowner. If a waiver of subrogation is present the carrier would not go forward with recouping the damages. Like the additional insured, it could be applied to a specific party or purchased as a blanket option.

The accuracy of certificates is crucial to the success of a business. Many agencies are not aware that certificates of insurance, whether not done accurately or timely, can prevent a contractor from getting a job or getting paid. That is why it is important to work with an agency who understands to keep your business successful!