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Florida General Contractor Insurance quote and information.
- Who is Florida general contractor insurance for?
- What exposure is covered with independent contractors insurance?
- What builders risk is there with contractors insurance liability?
- What liability is covered with insurance for contractors?
- Do I need Workers Comp and General Contractor liability insurance?
Who is Florida general contractor insurance for?
General contractors manage the construction of a new building or renovation to an
existing building. They are in charge of not only the construction site, but also of the entire project.
Normally, general contractors have an area of specialty, such as single family homes, commercial buildings, or
specific types of buildings such as restaurants, factories or stadiums. Most have a set group of permanent employees,
and then subcontract the remaining tasks to other specialty subcontractors. In Florida, firms whose employees do no actual
construction work are commonly called "paper" contractors. More often, however, they act as "prime" contractors,
typically performing the framing carpentry, structural masonry, or metal building erection. The remaining jobs are
subcontracted ("subbed out") to others. Plumbing, heating, and electrical are collectively referred to as the
mechanicals.
Once the Florida land has been purchased and the design or architectural work has been done, the general contractor takes
the project from the site or land preparation, through excavation and laying of the foundation, to the completion of the
building, including the interior finish. Typically, the general contractor first turns the architect’s design into
specifications for work and materials, setting quality standards and also scheduling the phases of the project, as well
as dictating insurance requirements for the project as a whole and for the subcontractors. The contractor then lets
bids (solicits competitive proposals) from potential subcontractors and suppliers. Together with the customer (the
project owner), the general contractor then awards the bids to the successful Florida subcontractors.
It is also the general contractor’s responsibility to coordinate with all local and state ordinances, codes and zoning
requirements. This includes purchasing the necessary permits and obtaining the necessary surety bonds.
What exposure is covered with independent contractors insurance?
Property exposures at the general contractor's own location usually consist of an office operation and a yard for
material, equipment and vehicle storage. If the Florida general contractor is a paper contractor there will be no yard since
there are no operations other than paperwork. If the general is involved in part of the actual construction, the yard
exposure will be the same as any other contractor performing those operations. Since the most common exposure will
be those of either a framing carpenter or a mason, there would be the possibility of lumber or brick storage.
Independent contractor insurance includes coverage for auto exposures. Automobile exposures may be private passenger only as executive supervisors travel from site to site. It is
important to understand the controls of any private passenger fleet and the permitted usage. If the Florida general contractor
is also handling part of the construction, the vehicle usage will be similar to that type of trade contractor and should be
revised accordingly.
What builders risk is there with contractors insurance liability?
Builders Risk Coverage is an important coverage for many general contractors. Besides obtaining coverage they may
need to coordinate their subcontractors’ coverages and terms. Exposures will vary depending on type of Florida project. New
construction versus renovation building is also a major consideration.
Surety bonds Many building operations require bond and financial guarantees for the completion of projects for their
customers. Items to evaluate for these exposures are the contractors’ performance records, prior experience, the
types of bonds required, and their financial situation.
What liability is covered with insurance for contractors?
Premises liability is another area of high concern. Since the general contractor is responsible for the job site, failure
to protect equipment, building materials and property of others left at job sites from theft and vandalism may result in
a subrogated loss. Some Florida sites may present significant attractive nuisance hazards as well. All hazards are increased
in the absence of properly enforced procedures to control access to the jobsite. Lack of adequate communication
between the different subcontractors can cause hazardous working condition especially if there are blasting or similar
hazardous operations taking place.
Contractual liability exposures are of great significance for general contractors. While it is important to control
physical hazards, the absolute key to all general contractors is likely to be management of contractual language.
Catastrophic financial losses (and expensive litigation) may arise if the general contractor fails to make sure
subcontractors’ certificates of insurance are accurate and the limits are adequate. In addition, in Florida, it is mandatory that the
general contractor and project owner be included as additional insureds on the subcontractors’ policies – the specific
terms may play a significant role in who pays for a loss.
Completed operations is another major area of potential high loss exposure. The designer and engineer of the
project, the quality of materials, and the construction details are all critical. Failure of the insured to maintain quality
control and full compliance with all construction, material, and design specifications may give rise to serious loss.
Do I need Workers Comp and General Contractor liability insurance?
Workers compensation exposure depends on the actual work done. Since the executive supervisor is only
reviewing and giving oversight, the exposure is clerical with some jobsite inspection. However, if actual construction
work is done, the exposure should be reviewed based on the type of construction taking place. Control of the jobsite
is the responsibility of the general contractor, who may be held responsible for any injuries of subcontractors on the
job.
Contractors Insurance Liability Quick Question
Do you have a quick question for one of our agents? Let us know.
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