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What recourse does a General Contractor have if an insurance company refuses to pat overhead and profit?
Wiki User
∙ 13y ago
ALL businesses/contractors deserve O&P. The insurances charge it in their policies to their insureds and therefore legally are not allowed to keep it; in addition to wanting your contractor to reinvest in themselves to be around to honor your warranty... it is always justified and required.
The best recourse is to hire a knowledgeable contractor/business to handle your insurance claim on a contingency basis. Not all contractor's are educated enough to know what the laws are and what they deserve to keep them in business.
One is to file a complaint with the insurance department and see how that goes. Unfortunately, this can potentially take some time, sometimes to run through the system and garner results. Regardless of a quick result or slow result, it is a necessary step to keep the insurances from keeping what is not theirs.
Another is to invoke the Appraisal provision of the policy (Results vary).
Wiki User
∙ 13y ago
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Who pays contractor's general liability insurance the general contractor or the client?
While different states may have different requirements, it is generally the responsibility of the contractor to furnish his or her own general liability insurance. Of course, the costs of any business will be, one way or another, paid for by monies received from clients. These are "overhead" costs and will be factored into bids throughout the course of a fiscal year.
Can you act as your own general contractor and receive overhead and profit when filing an insurance claim?
If the insured elects to do the work themselves, profit is not usually included in the estimate. Insurance policies are not in place to profit the insured. They are to make the insured whole again. Overhead would be included.
What is an insured contractor?
An insured contractor is a contractor who carries a Commercial General Liability Insurance Policy.
Can general insurance be backdated?
can a contractor have liability insurance backdated to show the company was insured
Do you have to have a general contractor to get overhead and profit from the insurance company?
No, there are plenty of laws and regulations that address overhead and profit. Contractors charge it and insurance companies pay it. That's the nature of the beast. The insurance company that doesn't pay it is not only an exception to the rule but runs the risk of breach of contract and bad faith lawsuits as well as sanctions by insurance departments. There has been much litigation against insurance companies that mess around with overhead and profit, including several class action lawsuits against major insurance companies.
What kind of insurance do you need for a housekeeping business?
General liability.(contractor's)
Does General contractor liability insurance cover default of payment to subcontractor?
no
Where can one find a contractor for general liability insurance in Mobile Alabama?
Yellowpages is a great resource to find a contractor for general liability insurance in Mobile, Alabama. The website contains contact information for multiple contractors.
Which insurance carrier pays on Florida condo negligence of contractor claim?
The contractors General Liability Insurance would cover accidents and quality of workmanship issues that result from the activity of the Contractor.
Where to get general liability policy for general contractor?
Contact a licensed commercial insurance agent in your area. It will be able to assist you if it do not sell the particular coverage you need by referring you to another broker. Do a search for general liability insurance for your state and hundreds of agents will show up. Make sure you use a contractor insurance specialist however.
How much professional liability insurance does a sole proprietor painting contractor need?
A contractor Buys Commercial Liability Insurance in the contractor class, not professional liability insurance. The amount needed is typically determined by the exposures presented or as specified by the employer.
What is the cost of general liability insurance for an independent contractor?
It all depends on the overall risk exposure. Without knowing what type of contractor you are and what you annual volume is, there is no way to guess what you might pay for your insurance.
