General Contractors Insurance Liability: Coverages and Endorsements (Part 2) - YouTube

Hello, I'm Razelle with ContractorLiability.com We've put together this informative video for you. I hope you enjoy.

Welcome back to our tutorial about General Liability,

as you know this policy will protect you and your business against 3rd party damages

so let’s go over the coverages you can expect to get in a basic General Liability policy:

1. General Liability per Occurrence with $1 million limit:

This amount represents the maximum coverage the Insurance Company will provide per incident.

2. General Liability Aggregate with $2 million limit:

This means that the Insurance Company will pay up to 2 million for multiple claims throughout the policy length.

3. Advertising Liability with $1 million limit: This coverage kicks in when you cause damage to a business in the course of

advertising your products or services.

The damage could mean a financial loss for the injured party and this coverage protects your business against a potential lawsuit.

4. Products and Completed Operations with $1 million limit:

It protects your business

if someone sues you over a product you make or sell, or by work you have already completed or abandoned.

5. And finally we also offer Damage to Property of Others with

$50 thousand limit and Medical coverage with

$5 thousand limit.

And now that we are talking about coverages,

it’s important to mention that there are all types of additional insured and most companies will take a simple

certificate stating you have the coverages outlined on page 1;

however,

larger contractors generally want to protect their insurance policies and pass the risk

downstream” to you in asking for language that favors them.

The 3 main endorsements that they may ask for on their policy along with special wording are as follows:

1) Additional Insured CG2010

This is the most common endorsement used today,

it provides coverage to an additional insured for ongoing operations,

and it does not cover completed operations.

2) Primary Wording it establishes the order or priority of coverage,

this means that the insurance policy to which the word applies will be the first policy to pay out in the event of a claim.

3) Waiver of Subrogation:

is an endorsement that forbids an insurance carrier from filing a lawsuit to recover the money they paid on a claim.

Your client or the General contractor may require this endorsement to avoid responsibility

for claims that occur on their jobsite.

And last but not least, let’s talk about your Deductible. In General liability insurance it is called Self-Insured Retention or

S.I.R meaning you retain the first amount of these dollars in the event of a claim.

For example, if you have elected to purchase a $2500 S.I.R

and you have an $13,000 claim, you would pay the first $2,500

and the insurance company would pay the $11,500.

The higher your self-insured retention is the lower the price should be.

Thank you for watching our video, I hope it was a great learning experience

and remember, if you need General Liability and good professional advice about insurance

Just give us a call,

I can contact you with one of our specialist to find the insurance you are looking for.

Thank you and we wish you the best with your projects!