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Contractors Professional Liability

Bookmark and Share As a contractor, you design, build and repair homes and other structures. Purchase contractors professional liability insurance coverage to protect your assets.

What is Contractors Professional Liability?

In the 1990s, contractors professional liability coverage was introduced primarily for contractors who design and build projects. This insurance covers financial obligations associated with fixing an error or omission made by you or the subcontractors you hire.

What Does Contractors Professional Liability Cover?

Contractors professional liability insurance covers a variety of work-related circumstances, including:

  • Negligence by you or one of your hired subcontractors
  • Design errors caused by your or one of designers you hire
  • Faulty workmanship by you or one of your hired subcontractors
  • Cost overruns or delays caused by bad sequencing or lack of coordination
Additional coverage provided by contractors professional liability may include these options. Check your specific policy for details.

  • Pollution coverage for claims involving pollution from job-site activities, including failure to detect pollutants
  • Indemnity coverage if you must file a first-party claim against the project's architect or engineer who is liable for the loss
What's the Difference Between General and Professional Liability?

To ensure you purchase the right coverage for your business, understand the difference between general liability and professional liability.

General liability will cover bodily injury and property damage that occurs because of ordinary construction means and methods, including contract breaches. It's definitely essential, but professional liability is important, too. It covers costs associated with damage that result from your failure to render professional services.

As an example, let's say the handicap ramp you construct for a local business fails. You can only file a claim through your general liability policy if someone is injured or the property is damaged. Otherwise, you'll need a professional liability policy to cover the cost of replacing the ramp.

How to Purchase Contractors Professional Liability

Purchase a contractors professional liability policy through your commercial insurance agent. You will want to purchase an annual policy based on your operational needs. Additionally, you may purchase a policy for specific projects especially if they're extensive.   

In most cases, you'll want a true professional liability policy. You can add professional liability coverage as an endorsement or umbrella policy on your general liability policy, but it typically offers limited coverage that's inadequate for your needs.   

It's important that as a contractor you understand your responsibilities for completing projects properly, on time and on budget. There are always risks in your industry, so purchase contractors professional liability insurance. It can pay for mistakes and protect your assets as you perform your job.

Creating a Drug-Free Environment

Bookmark and Share About three in four drug or alcohol abusers have jobs – and they don’t leave their problems at the door when they arrive at work! According to OSHA, an effective drug-free workplace program should have five components:

A Drug-Free Workplace Policy. Your policy should include a stated purpose or rationale, a clear description of prohibited behaviors, and an explanation of the consequences of violating the policy Supervisor Training. Have your supervisors trained in understanding the policy and its implications, recognizing and dealing with employees who have substance-related performance problems, and referring these employees to available assistance. Make supervisors responsible for monitoring employee performance, staying alert to performance problems, and enforcing the policy.

Employee Education.

Effective education addresses company-specific details about the policy and program, together with general information about the nature of substance abuse; its impact on work, health, and personal life; and types of available assistance. You can provide education through safety meetings and training sessions, home mailings, workplace displays, brown-bag lunches, guest speakers, seminars, and new-hire orientation sessions.

Workplace Assistance.

Employee Assistance Programs (EAPs) offer an alternative to dismissal and minimize the employer’s legal vulnerability by demonstrating efforts to support substance-abusing workers who need help. EAPs provide counseling and referrals, plus other services such as supervisor training and employee education. If you don’t offer these services, maintain a resource file from which employees can access information about community-based resources, treatment programs, and help lines

Drug Testing.

The most common test is urinalysis. Other types are the breath-alcohol test, blood test, hair analysis, and saliva or sweat tests. Reasons for testing include pre-employment screenings, reasonable suspicions of use, post-accident, return-to-duty, random, and periodic tests. Private employers have latitude in implementing testing, unless they’re subject to federal regulations (for example, the U.S. Department of

Transportation drug-testing rules for employees in safety-sensitive situations). Many employers use testing guidelines by the Substance Abuse and Mental Health Services Administration (SAMHSA). Finally, bear in mind that creating and implementing a successful drug-testing program takes time and patience!

Motor Traders Workers Compensation

Bookmark and Share As a motor trader, you buy and sell automobiles and possibly recreational vehicles, all terrain vehicles and other motorized vehicles. Your job involves more than selling cars, though. You may also test drive automobiles, transport vehicles to different locations, talk to customers throughout the community and maybe even perform light mechanics. Make sure you have motor traders Workers' Compensation through your employer as you protect yourself.

What is Motor Trades Workers' Compensation?

The federal government mandates that every business must carry Workers' Compensation for its employees. This valuable coverage ensures you receive the professional and adequate medical treatment you deserve if you are injured on the job or suffer from a work-related illness. It minimizes time off work and the financial burden injuries and illnesses may bring.  

Your Workers' Compensation insurance policy provides several important financial resources, including all the required medical treatment associated with treating your workplace injury or illness such as doctor visits, physical therapy, lab testing or other procedures. It can also replace a portion of the wages you lose when you're off work recuperating.

Your Workers' Compensation coverage may also provide benefits like:

  • Safety training that helps you identify hazards and adopt safe practices
  • Medical treatment plan review
  • Billing review to ensure accuracy
  • Vocational assistance that helps you return to work as soon as you're medically approved
Where to Buy Motor Traders Workers' Compensation

Your employer will purchase Workers' Compensation insurance for you. Talk to your Human Resources manager to ensure you have adequate motor traders Workers' Compensation benefits.

How to File a Motor Traders Workers' Compensation Claim

Maybe you slip on wet stairs and sprain your ankle or get sick from breathing fumes during an office renovation. File a Workers' Compensation claim as soon as possible after the incident.

Your supervisor or HR manager will provide the official Workers' Compensation form you must complete. It will include details of the injury or illness such as how, when and where it occurred. You may also provide the names of any witnesses to your accident.

How to Claim Workers' Compensation Benefits

After your Workers' Compensation claim is approved, you may seek appropriate medical treatment from a provider in your Workers' Compensation policy network. If you choose to see a medical professional who's not on the approved network list, you will pay out-of-pocket for any associated expenses.

Additionally, complete any prescribed treatment or you may forfeit your benefits. Your doctor or therapist will let you know when you can return to work.

Motor traders Workers' Compensation provides financial resources if you are injured or suffer an illness at work. Discuss the details of your coverage with your HR manager as you stay safe on the job.

Avoiding FLSA Violations

Bookmark and Share Have you audited your practices for these common wage and hour exposures?

Exempt vs. non-exempt. Have you classified your exempt employees properly or are you risking an overtime exposure?

Rest and meal period violations. Is the employee truly relieved from work and are your time-keeping clocks tracking meals accurately?

Travel time. Many workers who start from their home and then go to multiple locations fall under “portal-to-portal laws.”

1099 misclassification. This is a significant exposure. The IRS and state agencies are looking to find as many people as they can who are classified as employees.

Failure to pay prevailing wage. If you’re working a government or quasi-government project, make sure you’re complying with all wage requirements.