All is fair in business and insurance–or is it? Not all insurance is created equally, and of course not everyone can always obtain their ideal insurance policy. For business owners, specifically of non-residential contractor businesses that could harbor many potential liabilities, finding proper and affordable insurance can be a tiresome process.
Take, for example, a roofing company. A general contractor business like this may seem simple to insure, right? Wrong! In that type of work environment, workers are exposed to situations subject to workers’ compensation (i.e. accidentally falling off the roof), and workers’ compensation can be very expensive. Roofing businesses also face general liability exposures, where if the company does not complete a roof correctly, rain water might seep through and damage the home. Or, roofs can be too heavy for their framework, consequently caving in and injuring the inhabitants of the home. The homeowner’s insurance would then subrogate the roofing company, citing poor job execution. Whether the roofing company is at fault or not, this becomes a liability issue that could lead to very expensive fees and possible lawsuits.
Termite and pest control businesses also deal with tricky issues when it comes to insurance. Tenting a house can cause property damage, chemicals used during the extermination processes can affect the health of the general public and workers, and we’ve even heard of a house exploding because the gas had not been turned off during the process! In any case, dozens of liabilities can evolve into serious issues for contractor businesses, and it is imperative that all businesses have proper and adequate insurance in the event that something goes wrong.
General contractors who build homes that will not be sold immediately (i.e. for developers) can have problems getting insured, because they lack the “certification of ownership,” meaning that the contractor has to deal with the developer with insurance issues or claims, instead of a homeowner. This means more difficulty with settlements!
Although contractors of all kinds can face many obstacles when looking for affordable and comprehensive insurance coverage for their businesses, insurance companies need to do their due diligence before insuring a complicated business that could possibly have problematic accountability issues down the road. Luckily, BMR Insurance is always up for a challenge, and we will work with just about any type of general contractor business, from car mechanics to bug exterminators, to make sure that everyone is insured. For a free insurance consultation, contact BMR Insurance today at (714) 838 1911. And for a great roofing contractor who won’t leave rain to seep through your home, contact Miles at Galla-Rini Roofing today!