Does A General Contractor Need Insurance?

Does A General Contractor Need Insurance?

We Can Answer Why Does A General Contractor Need Insurance

Have you asked yourself the question, "Does a general contractor need insurance?"  This is most likely because you yourself are a general contractor yourself or you are a real estate agent  that is looking to consider this type of insurance for your employees.

In either case, back to the question:

Does A General Contractor Need Insurance?

The answer is not as complex as you might think, but does require some dissection.  The State of Texas does not require you to be licensed as a general contractor, but does require you to be bonded for special projects.  In addition, it is also important to consider the fact that while the State of Texas does require you to obtain general liability insurance workers' compensation is not required.

However, you still need to find insurance if you want to protect your assets.

Thus, a more important question would be:

Why Does A General Contractor Need Insurance?

As mentioned, to answer the question you would need to consider the way in which insurance would protect your assets.  For example, if you are a contractor and your subcontractor does not have insurance, and they get injured while on the job, then you would be held liable.

If you are real estate investor that is doing construction on the property, you are automatically a general contractor if you hire workers or artisans.

Thus, you need insurance. 

Subcontractor Insurance Is A MUST If You Are Dealing With Contractors

Do You Have Subcontractor Insurance?

If You Do Not Have Subcontractor Insurance, Then You May Be Liable!

Subcontractor insurance is essential if you are doing any kind of work on your real estate investment property.  If your contractor is injured, or if a construction default happens, you do not want to find out too late that your insurance company will not pay!

That is why it is important to know what kind of insurance you need before you begin any kind of home construction project.

What Is Subcontractor Insurance?

True to what it sounds like, subcontractor insurance is specialized insurance that will address specific worker concerns, such as a construction default. It will help when it comes to artisan contractors, such as plumbers or electricians, as well as general construction projects.

Beyond this, you also want to consider workers' compensation, which will help take care of any liabilities or claims should an injury or death occur while on your real estate investment property.

Why Do You NEED Subcontractor Insurance?

Quite simply, general liability insurance will not  cover many different claims associated with home construction, such as a workers' injury or a construction default.  As a real estate investor, you want to spend time engaging in what really matters, and by having the right kind of insurance, you can save considerable time and money!

Contractor Insurance Liabilities Do Exist And Can Hurt Your Real Estate Investment!

Do You Know What Contractor Insurance Liabilities Might Exist?

Contractor Insurance Liabilities Can Completely Hinder Your Investment

Did you know that contractor insurance liabilities might exist right on your real estate investment property?  If you are doing construction work on your property, and you are working with contractors, here's what you need to know:

What Are Some Contractor Insurance Liabilities?

Essentially, any injury that a contractor faces can become contractor insurance liabilities.  There are a number of hazards associated with the construction of your real estate property, even if you do not think there are.  For example, your contractor may step on a nail and get an infection, they may fall off a ladder, or suffer some other type of injury.

If you are not properly covered, then you may be liable for any one of these!

How To Protect Yourself From Contractor Insurance Liabilities

The best way to protect yourself in the event of an accident or an injury, is to make sure that you have the right insurance. You should also know whether or not your contractor is insured or uninsured right out of the gate. If they are not insured then this is yet another way in which you may be liable!

There are also other ways to protect your investment.  For example, you should also consider getting workers' compensation, subcontractor insurance, and so forth.

Get protected today!

Your Real Estate Investment Insurance May Be Affected By Building Components

Are Your Real Estate Investment Insurance Rates High?

Did You Know Your Real Estate Investment Insurance Rates May Be Affected By Building Components?

Have you gotten a Real Estate Investment Insurance quote that seems a little higher than normal?  Or, are you shopping for insurance rates and need  to know what the comparable rates might be?

Why Real Estate Investment Insurance Is Importance

You know that you NEED insurance, but why is it so important that you have it?  Because anything can happen!  If your real estate investment goes through a flood, and you later rent it out.  Will your tenant then complain of mold issues?  Insurance acts as a type of buffer to protect you and your assets.

That is also why it is important to get the best insurance rates possible.  The key is to keep rates low while still offering you viable protection.

How Building Components Affect Real Estate Investment Insurance

The construction elements of a building are extremely important when it comes to a real estate investment.  As previously explained, components such as the type of building (brick for example), plumbing, electrical, and other aspects of construction will all determine what insurance rates you might see.

The same is true for wiring.  Depending, on what type of wiring you have in your real estate investment property, you may be paying MORE for insurance?

That is because copper wiring has become the preferable industry standard. That means if you have aluminum wiring, then you may not even be covered for insurance, and if you are, you will pay out more in insurance.

You NEED A Commercial Property Liability Insurance Quote If You Have These Building Components

You Need To Get A Commercial Property Liability Insurance Quote

A Commercial Property Liability Insurance Quote WILL Protect Your Investment

Getting a commercial property liability insurance quote is essential in protecting your investment.  That is because, construction Liabilities can really matter when it comes to insurance rates.   Thus, if you are a real estate investor, you need  to know all aspects of the structure of the property.

Why Do You Need A Commercial Property Liability Insurance Quote

Construction elements are essentially the building materials that went into the construction of your real estate property and will then determine what kind of insurance rates you will see.  This is because certain building elements, such as the type of plumping you have in your real estate home, can be rated higher or lower than others.

That means if something were to happen with your real estate investment property, then you may be held liable!

What Should You Consider When Getting A Commercial Property Liability Insurance Quote

Quite frankly, building components will  matter because they will determine what type of insurance rates you will see, no matter what the construction element is.

For example, a brick veneer building will warrant a better rating, as opposed to other types of building materials, especially depending on the masonry involved.  This is simply because some building construction materials are hardier than others, are more sustainable and long lasting, and essentially, are less prone to damage.

The same would be true of central heating, which typically rates higher and thus, offers you a more comparable rate. Other building elements that make an impact are the type of window units, plumbing, and so on.

It is important that you know what construction elements went into your building so you can get the best rate possible.

Contractor Insurance Pricing, What You Should Know

IF YOU ARE A REAL ESTATE INVESTOR, YOU SHOULD BE AWARE OF CONTRACTOR INSURANCE PRICING

Contractor Insurance Pricing WILL Fluctuate

Did you know that contractor insurance pricing will change depending on many different factors?  It is important that you know how and why in order to get the best rates possible.

What You Need To Know About Contractor Insurance Pricing

When it comes to real estate investments, oftentimes to save time and money you will hire contractors or subcontractors to do work on the property.  However, do you know if you are dealing with insured or uninsured contractors?

Knowing the answer will help you determine what kind of insurance rates you might receive.  In terms of pricing, if you are dealing with insured subcontractors than you should expect to see lower rates.  In addition, consider what costs you are also doing per year, such as resources, hiring, and so forth.

Why Contractor Insurance Pricing Matters

Quite simply, knowing what kind of pricing exists, or can exist rather, will allow you to make the best decision for your individual insurance needs.  For instance, if you did not know that subcontractors need separate insurance, then you could potentially face major liabilities later on.  As a real estate investor, you want resources to go to what's important.  Thus, knowing what rates you should expect will allow you to make more informed decisions.

Contractor Insurance, Minimizing Risks With New Contractors

ARE YOU A REAL ESTATE INVESTOR LOOKING INTO CONTRACTOR INSURANCE?

IF YOU HAVE HIRED A NEW CONTRACTOR FOR YOUR INVESTMENT PROPERTY THEN THEY NEED CONTRACTOR INSURANCE

If you are a real estate investor who has hired contractors to work on your investment property, then you need to have general liability contractor insurance.  This is especially true if the contractor is new and/or uninsured themselves.

Here's what you need to know:

How Does Contractor Insurance Help

Contractor insurance will help you in the event that:

  • A construction default has occurred
  • A subcontractor suffers an injury
  • You get sued over an injury or accident that occurs

These are just some of the risks that you can face when it comes to new contractors.  In insurance, we often say, “not knowing is not an excuse – and someone has to get paid.”  That is simply the reality of insurance, even if you are a real estate investor looking into real estate properties casually.

Quite simply, having this type of  insurance can protect your assets and give you peace of mind.   When you are a real estate investor, it also allows you to focus on what really matters - investing.

Worker's Compensation and Contractor Insurance

Not only do you need contractor's insurance, but it is also a good idea to consider getting workers compensation as well.  This is also helpful because it allows you even more asset protection for your real estate investment.

What You Need To Know About Contractor Insurance

If You Are Hiring A Contractor To Work On Your Property, Then You Need Contractor Insurance

Contractor Insurance Can Help Protect Your Real Estate Investment

Do you know if your subcontractor has contractor insurance?   Further,  are you yourself a contractor or are you hiring a contractor for your investment property.

Why Contractor Insurance Is a Viable Investment

If you are hiring a general contractor, then you MUST make sure that they are insured. If they are not insured, then the insurance will ultimately fall on you, the real estate investor.  Most new investors are unaware of this fact; eager to begin or finish up an existing project.  However, even if the investor has all the right intentions, even going as far as getting homeowners insurance or general liability coverage, they must still make sure that their contractor is insured, or at least be aware of the status.

If you are hiring different subcontractors, then this makes you a general contractor by default.  This means that you need general contractor liability insurance, otherwise you can potentially put yourself at risk.

Contractor Insurance Is Not The Same As General Liability Insurance

As mentioned, general insurance is the most basic type of insurance and does not offer the full extent of coverage, especially if you are a contractor or are working with a contractor.  Thus, it is imperative to consider getting contractor insurance in order to better protect your real estate investment.

 

Do You Have An Insured Subcontractor? Here’s Why You Need To Know

The Difference Between An Insured Subcontractor and One That Is Not Insured Is Vast

Insured Subcontractors Can Allow You To Have More Formidable Insurance Rates

When shopping for real property insurance, you need to know if you are dealing with an insured contractor, or one who is uninsured.  This is most prevalent in the real estate and construction industries, but matters in any commercial industry.

Why It Matters If You Have An Insured Subcontractor

The reason this is important is because, when it comes to most commercial industries, who works on your property or commercial property, and whether or not they are insured, matters.

An insured subcontractor matters because it can affect insurance coverage.  Not only will this help mitigate risk, but it can also help lower your insurance rates and insurance premiums as well.

Building contractor insurance, general contractor insurance, and other aspects of insurance coverage (even as general as electrician insurance) is vital so that you can be certain that, should something happen, your risks will be covered. It is equally important to verify insurance.

How To Know If You Have An Insured Subcontractor

The best way to know is to simply ask.  No matter what scope of industry you are in, you need to be mindful of who you are working with.

Thus, this is a conversation you need to have with your subcontractor before they are hired.  An open line of dialogue with your contractor is good practice in general as it can often raise specific red flags if they are non communicative or do not respond well to your questions.

Workers Compensation Death Benefits, How Does It Affect You

Death Benefits Is A Component of Workers Compensation

Death Benefits Can Help Provide For A Family Through Settlement

Death benefits are often a key component of any insurance policy, whether you are getting commercial or personal insurance.  In addition, it can also be a core component whether you are on the receiving end or are looking into this benefit type as part of workers compensation.

What Are Death Benefits?

In short, death benefits is the specific amount paid to the beneficiary after the insured has died.  For instance, in personal insurance, it is the typical life insurance policy, whereas in many businesses it is a key component of workers compensation.

Death Benefits And Workers Compensation

There is no doubt that workers compensation death benefits vary by state.  In fact, in the State of Texas, worker’s compensation is not even required.  However, what happens when an employee dies while on the job?  Even if the death is not a work-related death, it may be possible to be liable, no matter the scope of industry.

This is why knowing workers compensation death claims is so important, as they can greatly vary.  For instance, it is often customary that insurance will pay 75% of the employee’s weekly salary to the spouse, for the rest of their life or until the spouse is remarried.

Thus, while worker’s compensation may not be required, workers compensation death benefits is such another reason that showcases why workers compensation benefits in Texas, even if is not required, is essential.