GC Insurance - How Much?
How much should i ask the GC to have? We are demolishing the existing kitchen and creating a new on in the adjacent room. there will be no structural changes. Is 2 million enough? thanks.
How much should i ask the GC to have? We are demolishing the existing kitchen and creating a new on in the adjacent room. there will be no structural changes. Is 2 million enough?
thanks.
in addition to the amount of coverage, you should ask whether there are any claims already against the amount. If they’re being sued already the $2MM may not protect you. Ask for the contact info of the GC’s insurer to verify.
Ok, I carry 2 mil and do small jobs, real small – built in cases, moldings, balustrades, cabinets, counters, doors and I know that I carry a low amt of insurance. Most buildings in Manhattan and office buildings require 5 million. I think any serious GC (I am not a GC) would carry 5 mil; g forbid anything went really wrong, and involved more than your property, say a neighboring property, that 2 mil will be nothing. Yes, your homeowner’s insurance would probably cover – but it will be ugly and if that contractor is careful and wants to cover all bases, he knows that the homeowner’s insurance company will be after him for damages. Just on that alone, I would look for a GC that carries more; it means he has assets of his own that he wants to protect and he is going to take measures to operate as above board as possible.
steve
Echoing above, have your contractor deliver true copies of both Workers Compensation insurance, and personal liability insurance in a minimum amount of $1,000,000 per occurrence. Be sure to have him name you as additionally insured.
2 million dollars is enough insurance for a job of this size.
Also your homeowners coverage most likely will kick in if in some unlikely scenario there is over 2 million in damage.
But make sure you ask for workers comp and disability. It is very likely the contractor, or one of their subs has a disgruntled employee who gets hurt and starts shaking everyone down for comp and disability.
Keep in mind for you contractor to carry a 2 million dollars in liability coverage costs them about $10,000 a year. If you start asking for more than that they will probably walk away because they need to buy liabilty coverage by the year not by the job. Depending on how much volume they do it will cost them approx $5000 for every million in coverage
lol, Alex…
1mil/2mil is enuf for most of the city’s august office buildings, so no doubt it will be enuf for you.
Definitely not! When the contractor you hire screws up you and your lawyer will want to have an opportunity to squeeze the most out of his insurance. I figure a six-million general liability policy should be enough to cover the costs associated with rebuilding your mansion should it be destroyed by a contractor. Also don’t forget to ask for a ten-million performance bond. Insist on no less. You also might be able to demand to hold the contractor’s first-born until the job is done.