When it comes to purchasing General Liability, there are many specific risks at play. It’s hard to know what to cover and what not to worry. More importantly, there’s a very complex task involved in finding the right balance of coverage and cost. To ensure you purchase a worthwhile policy, avoid these very common mistakes.

1. Failing to purchase General Liability
The first mistake made by some contractors is failing to buy insurance at all. This is often due to effort to cut costs, while hoping nothing goes wrong. Avoid this as it can wreck your business.

2. Buying from the wrong company
Many contractors simply buy from inefficient companies. It is advisable to ensure that the company or agent you work with is familiar with your business demands and keeps in touch with daily development that could affect you.

3. Failing to fully assess policy before buying
For some contractors, the mistake they make is failing to fully understanding what they are buying. Your task is not done yet after finding the right company. You should take time to study what you are being offered before making a deal. Make sure there are no problematic provisions included.

4. Buying a Claims Made policy
A claims made policy is a type of coverage that only pays for claims officially made while it is still effective or during its extended period. This should be avoided as claims not made during the policy and extended periods will not be entertained by insurance companies.

5. Failing to ensure subcontractors
There are still contractors who didn’t ensure their subcontractors have general liability insurance, perhaps, as a way of helping. Decisions like this can run you out of business should the subcontractor cause a problem on the job.

6. Trivializing exclusions
This is a costly thing to do, but some contractors are still guilty of it. You should always take time to read exclusions and see if any applies to your business. This will save you the cost of cancelling and re-quoting your policy later on.

A comprehensive plan meets your needs and helps keep your business operational under a variety of unwelcome circumstances. If you are making these mistakes, talk to your agent today about better options to get optimal coverage. We will help guide you towards the right policy. Call A-Best Insurance at (713) 681-1967 for more information on General Liability.

Posted 2:20 PM

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