A big expense factor in a contractor’s construction bid will always be the expense of the liability insurance for the project. The contractor’s existing general liability policy might not be sufficient to meet certain requirements of a particular job being bid for but upping the coverage on his regular liability insurance could leave the contractor in a grossly over-covered position following the job is performed. A per project policy is fantastic for construction bid circumstances like this.

A per project liability insurance coverage is strictly what it reads as. The contractor can get a liability quote for exactly the required amount and for only as long as the precise job is underway. This means the contractor will have the correct amount of insurance at the right time. He will not have too little during the job and will not have too much following the work is finished either. Per project general liability is ideal for a contractor’s general liability.

Two critical factors should be considered when looking at per project insurance. The first is the utmost payable amount and the second reason is the actuarial claim rate.

The individual or more likely the organization tendering out the bid will stipulate the minimum amount of liability insurance requires. Let’s say the mandatory insurable amount is for twenty million dollars. That total coverage may be necessary for the bid but through the general business of the contractor, perhaps ten million is a lot more than sufficient. A per project general liability package could be put in force just for the term of the contract.

Market Traders Insurance may be the actuarial. That is the incidence of claims for a particular type of application. For instance, if the contractor is doing dangerous work like welding underwater the claim rates are higher than work as an inside painter therefore the rate per thousand dollars worth of insurance will naturally be greater for the underwater welding. A contractor needing liability insurance may often be quoting for work that’s of a different actuarial rate.

Administration of the contractor’s office and his doing quotes involves much less risk than completing the contracted work does so per project general liability would certainly be a better value than a global policy it doesn’t address the differing needs.

Per project contractor general liability insurance isn’t a completely new product but it isn’t a policy that most insurance underwriters have not been overly wanting to offer. Insurance agents prefer a long-term deal like a life insurance coverage that simply has premiums running to eternity and beyond. Per project coverage requires the insurance for only a fixed term and at a set rate. Per project general liability insurance is optimal for the contractor’s insurance and per project general liability insurance can be found, and is certainly worth finding, even if it takes some extra looking.