Misconceptions about Civil Contracting Insurance
As your contracting business has grown, so has the need to have certain administrative tasks taken care of. One of those tasks is to obtain and carry civil contracting insurance. Unfortunately, there are a few misconceptions out there about this type of insurance. With that in mind, here are some of those misconceptions and what you need to know about each one before obtaining your insurance:
Blanketed coverage, when it concerns civil contracting insurance, refers to the misconception that the insurance covers all liability. The truth is, there are various levels and types of insurance packages that fall under civil contracting. For example, you may have more insurance coverage for liability of your employees rather than the equipment you hire or use. The coverage amounts, like with other insurance, vary depending on your needs. As far as blanketed coverage, there are full coverage options, but even those do not cover everything you may face. You can add on coverages and policies to help with specific areas of your business if the liability in those areas is a concern.
Temporary Hire Is Already Covered
You may hire more employees depending on the specific project. These workers are contracted on a temporary hire basis through another company. The misconception is that these workers are already covered under a form of civil contracting insurance carried by the hiring agency you are using. The truth is, that although the for hire company may carry civil contracting insurance, it may not cover the staff you temporarily hire from them. The coverage depends greatly on the task, the insurance you already carry, and the certification of the staff. If you want to make sure your temporary staff is covered you will need to make sure the insurance you carry covers what the temporary agency insurance does not.
Full Coverage Packages are Required
A misconception that you may run into is that full coverage packages, or full coverage civil contracting insurance, is required and must be maintained at all times regardless of the project. This can be confusing for some people since each contracting business does require civil contracting insurance, but the level may not need to be full coverage. You can actually purchase extra insurance on a per-project basis. For example, you may already carry civil contracting insurance, but the project you are taking on deals with environmental concerns. You can purchase environmental coverage for the specific project without carrying it at all times.
Now that you understand some of the misconceptions surrounding civil contracting insurance, you can locate a reputable insurance broker. They can help you with additional questions that pertain to your specific business. They can also help you with choosing the right insurance for your business, pricing and signing you up.