Personal Financial Tips

Article by Tom Bennett

Definition of General Liability Insurance

Adequate General Liability insurance coverage is the first thing a homeowner considers when choosing a roofing contractor.

It is defined as an insurance policy that offers protection against third-party claims of property damage, injury or bodily harm, loss of life or limb, or negligence. General liability insurance offers blanket coverage that includes both “public” and “product” liability.

That coverage extends to direct or indirect actions of the insured (and the insured’s employees), which result in loss or damage, as well as products or structures manufactured by the insured that cause loss or damage due to a fault in the product.

Why do roofing contractors need general liability insurance?

1. General Liability insurance is often a requirement on any jobsite. (What do you mean by “you”? You must be speaking to a client here, don’t assume you are speaking to other roofers) As soon as the roofing contractor is awarded the bid, he will be required to produce a certificate of insurance to verify insurance coverage. The homeowners, business owners and big property owners typically request this requirement. Certificates of insurance are provided to verify the existence of insurance coverage and determine whether the coverage limits are adequate and meet contract requirements.

2. General Liability Insurance is designed to protect the contractor from claims of bodily injury and property damage that can occur while completing work on the homeowner’s roof. You never know when accidents will happen, so you need to protect yourself and your property.

3. Homeowners get benefited from the general liability insurance in cases where the roofing contractor accidentally damages the homeowners’ property in work related instances. If the homeowner’s contractor is properly insured, you will be less likely to be the unwitting target of third party claims, or lawsuits, or to be liable for damages you did not cause.

How much is it?

A general price is assigned based on the contractor’s projected sales and the amount of subcontractors he uses.

Most often the minimum insurance required is 1 million per occurrence with an aggregate of 2 million. On top of this, many of the contractor’s clients will request an excess policy with limits up to 5 million. The cost of this insurance varies on the type of policy purchased, the specific work that contractor’s perform and the type of works the sub contractors perform for him.

We at Roofrite are covered with general liability insurance because we value our clients and our employees’ safety. We have this insurance because we want to provide quality services to our clients. We assure you that we are not only insured, but also licensed and bonded as well.

Call us for all your roofing needs. We are a vancouver roofing company Just visit our website at http://www.chapmanroofing.com/ to be able to see the complete list of roofing services that we offer.

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