One would only be stating the obvious by saying that general liability insurance is important for businesses and contractors. Perhaps, you have one and your current policy has not quite provided enough protection for you. Here is a checklist of what to consider before agreeing to a general liability insurance renewal.
Accurate payroll information
It is very important that to provide accurate payroll information when you sit to discuss a general liability renewal with your insurance agent. Failure to provide the right information could prove costly when you are required to pay an audit premium at the end of the year.
Exclusions
There are usually some risks insurance companies may be unwilling to cover. It is important to find out the exclusions in the policy to determine whether they could have an effect on your work. Finding out after renewal could be quite painful and expensive.
Client requirements
If there are any special requirements by your clients for inclusion in your policy, make sure you inform your insurance agent about this. For example, a special legal agreement between a client and you will not be binding on your insurance if prior approval is not obtained for the agreement.
Subcontractor’s insurance certificate
If you will be working with subcontractors, make sure you get latest copies of their certificates of insurance. Most insurers will need these to determine your premiums. Failing to provide these certificates could lead to you being forced to pay higher premiums, as money paid to subcontractors will be reflected on your general liability policy as being part of payroll.
Workers compensation
It is required that you have a workers compensation insurance policy for your employees. This is to help cover for risks a general liability policy might not cover. You should also ensure that any subcontractor you work with carrying workers compensation. If you fail to do this, you stand the risk of being held responsible for anything that happens to any of the subcontractor’s employees while working on your project
Potential claims
It is also advisable to inform your insurance agent of any potential claims that you know might arise in the future. By doing this, you will save yourself the stress of having to deal with them when they eventually do come up.
These are only part of the important factors you need to consider when renewing your general liability policy. You may consider others based on your particular needs. Also, if your insurance agent does not respond to your queries the same day, you may want to look elsewhere for a new policy.
