Contractors Insurance At The Best Rates!

THE AMERICAN CONTRACTORS AGENCY

The Resource Center for Professional Contractors Since 1993

Do's & Don'ts

LEGAL FACT: Workmanship and/or Products performed or provided by contractors can have up to a "10-Year" Claim Reporting Period.

Unfortunately, many contractors believe that after their work is completed they only have an exposure to claims if the work was "Performed Incorrectly."

That Belief Is Untrue. Our "12 Do's & Don'ts" provides an important "insight" into the best purchase of general liability insurance and includes twelve simple precautions that every contractor should remember:

Precaution #1: Many Insurers have become "Insolvent."

Do #1: Know the "Rating" of the Insurance Company or Risk Retention Group you are considering to insure you.

Don't #1: Don't make an "Uninformed" decision on any Insurer.

Precaution #2: It only takes a few words on an endorsement to substantially change "Insurance Coverage's."

Do #2: Fully "Understand" any endorsement with a term like: "Designated Operations," "Prior Acts," "Manifestation Provisions," "Reporting Periods" and "Sunset Clauses."

Don't #2: Don't presume that "Your Work/Product" is exempt from exposure to claims in the future.

Precaution #3: Many Contractor Liability Insurance Applications have "Traps" that set up a contractor for a denial in receiving any insurance quote.

Do #3: Ask an ACA Insurance Specialist how to "Prevent" limiting liability insurance choices and how to effectively manage your future liability coverage's and premiums.

Don't #3: "Low Cost Coverage" is an advertising phrase that may get your attention but don't forget the phrase "Buyer Beware."

Precaution #4: Shopping Contractors Insurance by Price Alone is the equivalent of choosing a contractor based on Price Alone - "A Bad Approach."

Do #4: Realize contractors have "Predominant Liability Exposures" and an unsuitable general liability insurance policy leaves you with the cost and without the coverage.

Don't #4: Don't underestimate the importance of "Insurer Solvency," "Comprehensive Coverage" and maintaining "Consecutive" insurance policies.

Precaution #5: Insurance proposals with "Fees" that amount to a substantial portion of the total proposal are a valid reason to be skeptical.

Do #5: Pay attention to the actual "Pure Policy Premium" outlined in a proposal and separate-out the taxes (if any) and different terms used for fees.

Don't #5: Don't accept any contractor general liability insurance proposal that does not "Breakdown All Charges."

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