Restoration Insurance Coverage Tips: What Does General Liability Insurance for Restoration Contractors Cover Anyway?
If you are planning on opening a restoration firm or even if you have had one for years, you may be wondering what general liability for restoration contractors protects you from or why you need it. Most restoration contractors know they must have general liability insurance to step onto a job site, but we have found in our years of working with restoration contractors that very few of them understand where the policy actually protects them.
In this post we want to provide a very basic overview of what general liability is, why it is so important, and the best way for restoration contractors to obtain general liability insurance.
Disclaimer: Please keep in mind that we are providing a very broad overview of general liability insurance. Every policy is different with unique coverages and exclusions. If you have specific questions about your policy or want to look at getting quotes for a new one we recommend you call our office.
What is General Liability Insurance?
General liability insurance for restoration contractors is usually the primary insurance coverage they are required to purchase. The policy itself is designed to protect your restoration company from "bodily injury" or "property damage" for which you, your company, or another "insured person" is liable for. A basic policy will provide $1,000,000 in coverage for each occurrence (claim) and a $2,000,000 aggregate.
For restoration contractors the most common general liability insurance claims are related to property damage caused by faulty work. These are usually punctured gas or water lines or completed work that later causes damage to other property. (It's important to note that a general liability insurance policy isn't a warranty policy. It will not pay for your own faulty work, but rather the damage your work causes to others.)
What is the Cost of General Liability Insurance for Restoration Contractors?
The cost of general liability insurance for restoration contractors varies dramatically from company to company. General liability insurance premiums are usually based upon the restoration company's estimated revenue, payroll, and subcontractor costs. Additionally, your insurance premium will be affected by contractual obligations that require additional coverages and special endorsements.
A typical general liability insurance for a restoration contractors will start at $2,500 annually. This amount, though, can vary dramatically depending upon the state.
Why Work with American Restoration Insurance?
ARI Brokers specialize in providing insurance for restoration contractors. In addition to general liability insurance, we have created a complete insurance program that provides ALL of the insurance coverages necessary for restoration contractors. Because our program is unique to restoration contractors we have specialized premium that will ensure you have the best premiums available on the market.
If you would like to receive an insurance quote for your restoration company, please feel free to contact our office. Our friendly, knowledgeable staff can help guide you through the entire quoting process.