What is Custom Home Builder Contractors Insurance?
If you are wondering what custom home builders insurance is- it can be simply described as commercial liability protection in case of lawsuits arising from bodily injury or property damage. This contractor insurance policy is a commercial liability insurance product that provides protection in the event damages or losses result from negligence or faulty build within a residential or commercial premises.
What are the General Liability Needs of Custom Builders?
Many homeowners and business owners throughout Ontario, Canada are wanting custom built homes with features such as uncommon dwelling style and shape, custom cabinets and a floor plan that is optimized to their unique needs. At the same time home and business owners are becoming more savvy when looking for a custom building contractor and may request proof of insurance or WSIB coverage before they sign a contract or let you on their premises. We receive numerous calls from contractors who are looking for insurance coverage because their clients are requiring proof of insurance before starting a job.
What is Custom Builders General Liability Insurance?
Custom building contractors, just like painters, plumbers, electricians, masons, flooring contractors, renovation contractors, HVAC technicians, window installers, fence and deck contractors, roofing contractors, and concrete contractors are all contractors who enter onto a client's premises and are at risk of being sued. If the client is dissatisfied with your service or something goes wrong with the household appliance that you installed or repaired in the past, the customer could easily sue you for damages. It is common for home owners to turn their back and sue installation contractors when they are not happy with any work on household appliance repair or installing. Contractors insurance is designed to protect appliance repair and installation businesses from damaging lawsuits relating to negligence or improper work. General liability could mean the difference between forced liquidation and remaining in business.
When Should Custom Home Builders Get Contractors Insurance?
If you are working as an custom home builder in the province of Ontario, you should get a comprehensive custom home building insurance policy that covers your tools, legal expenses, and liability for property damage and bodily injury coverage. I am asked, what is the most appropriate time to get covered as an custom building contractor? I recommend that sooner is better than later. A contractor engages in a level of risk each and every time he or she takes on the responsibility of custom building a home. With that being said, one shouldn't wait to get custom home builder liability insurance. Get it as soon as you can.
How Long Will it Take to Get Custom Builders Insurance?
Before you’re able to get general liability insurance for your custom home building business, I will first need to qualify that you fit into our underwriting criteria. After you complete your request for a quote, I will call you to collect all of your experience in the field of custom building, business insurance history as a contractor, installation floater details, contractor tools, WSIB information for any employees you may have, review liability limits and deductibles, review business interruption coverage needs, commercial locations that you rent/own, locations that you occasionally rent for our tenant's legal liability coverage and the need for liability for non-owned auto coverage. If your commercial coverage needs falls into one of our extensive contractor packages, I could have coverage bound for you in as quickly as 20 minutes.
What are the Potential Costs?
Every custom building contractor has an obligation to ensure he or she is getting the best price for commercial insurance. For some small-business owners, they avoid being properly covered because of reasons of yet another cost of doing business. Unfortunately, many contractors only choose to get insurance protection when a problem with one of their jobs arises. This is a common mistake that I want to insure I can make sure doesn't happen to you. I hope that I can put you at ease by letting you know that custom building contractor insurance doesn’t have to break the bank and it is my goal to have proof of commercial insurance in your hands within a few hours.
However, the premium for custom building contractor liability insurance policies can vary from contractor to contractor. Typically, our liability, tool, loss of income, equipment and installation floater package start at $725/year for $2 million in coverage. This packaged rate will assume that you are a contracting business that provides exclusive sub-trade type of contracting work and have gross annual receipts of less that $2,000,000 a year. Please keep in mind that your price will also depend on your history and experience as a contractor, business contracts, company size, ownership of stock, buildings, contents and tools. For more information about the factors that can affect your cost of insurance as a contractor, check out the: "How much does contractor insurance cost?" page.
The Risks You Face
As an custom home builder, you face a wealth of risks. You may feel that you provided ultimate service for your client but that doesn't meant that the client won't accuse you of negligence causing damages. If you unknowingly damage the clients property or the construction of the custom house causes a problem at a later date, you may be deemed responsible. Custom building companies are always at risk of being sued by their clients and you’re no different.
Construction defects may cause water or structure damage eventually and their insurance company is looking to find probable cause elsewhere. Do not be surprised if your business is served in a lawsuit. It is best business practice to close the gaps in risk for your appliance repair/installation business. Don't delay. Click "get a quote" and provide some details about your business so I can reach out to you and ensure you are properly covered today!