Many construction contractors do not fully understand the risks and liabilities that can stem from damages to employees, third parties, or property and what insurance coverages would be adequate to protect them.
Lack of proper coverages could lead to huge financial liabilities and excessive coverages can lead to higher cost.
Manage Project Risk with Tailored Insurance Coverage
That’s exactly what has happened with Michael, a residential general contractor from Houston, who recently secured a big project of building a custom home for a reputed businessperson in the city.
Success here would mean that he would be referred to other important businesspeople in the town by this influential client leading to a significant boost to his business reputation.
For this project, Michael needed to procure General Liability (GL) insurance requiring all sub-contractors to carry the same or higher liability limits. His insurance agency swiftly completed the paperwork without any questions.
General Liability broadly covers the following:
- Injuries to customers or visitors on your premises or from your products
- Damage to third-party property caused by your business or products.
- Non-physical injuries like slander, libel, or copyright infringement
- Legal fees, court costs, settlements, and judgments from covered claims
Michael’s Big Success Meets Unforeseen Disaster
With his team's support, Michael finished the project on time, leaving his client highly satisfied and likely to refer him to friends and colleagues, boosting his reputation and business prospects.
Two months later Michael receives a call from the high-profile businessman.
A faulty wiring done by a subcontractor caused a fire that damaged part of the property, requiring extensive repairs. The businessman now expects him to cover the repair costs.
Michael now had to deal with taking care of the repair and restoration.
Nonetheless, he called his insurance agent to process the claims.
That’s when the final blow hit him! Michael learns that the said electrician (sub-contractor) who did the electrical wiring didn’t have Completed Operations Insurance Coverage and as a result, his insurance won’t cover these losses!
Michael had to come up with a large sum of money out of pocket to get the repair and restoration done.
Knowing that his knowledge of commercial insurance is limited, and the current insurance agent didn’t educate for the risks he ended up paying for, Michael looked for a trusted agent who would guide him and help him protect his business from impending risks and liabilities.
Michael’s Journey from Risks to Resilience
While every agent Michael met was pushing to sell him something, it was the agent from Pasadena Insurance who truly cared.
The agent pointed out the shortfalls of the current insurance coverage, reviewed Michael’s client contracts and educated him about each of the risks unique to his business and recommended verifying all sub-contractor’s insurance coverage compliances.
Michael could easily understand Pasadena Agency’s expertise in the construction industry. Naturally, he developed confidence and trust in the Pasadena Insurance Agency and started working with them.
In the coming days, the Pasadena Insurance team helped him out with contract reviews for his diverse construction projects.
Construction Contract reviews typically involve Risk Assessment, Coverage Verification, Compliance Checks and Mitigation Strategies and Pasadena agents were diligent to go over everything and explain to Michael about potential risks and coverages.
Pasadena agents provided insurance certificates and policy details within 24 hours, when a new client needed them, unlike his previous agent, who took 10 days and numerous calls.
However, Michael was most impressed by their commitment to review the evolving risks for his growing business, every six months, performing contract reviews for upcoming projects, and processing claims swiftly.
Finally, Michael felt secure!
Why does Pasadena Insurance Agency stand out for contractors like Martin?
All construction contractors, be it a general contractors or one of the subcontractors, like Michael need comprehensive protection for clients, workers, and other involved parties, safeguarding against the industry's inherent risks.
For construction companies, Pasadena Insurance Agency offers tailored coverage to meet diverse and comprehensive construction needs. With years of deep expertise in the construction industry, they evaluate your risk profile and provide the right solutions, just as trusted advisors do. Their dedicated service and in-depth, contract reviews ensure that your coverage is always adequate and up-to-date. Lastly, when you need them the most when an incident occurs, Pasadena agents are with you to swiftly process the claims.
Don’t leave your construction business exposed!
Contact Pasadena Insurance Agency today for a free consultation and discover how we can safeguard your operations.
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