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What Does It Mean When A General Contractor Says That They Are “Fully Insured”?
October 2, 2021
"Fully Insured" May Not Mean What You Think It Does
Unfortunately, there is no such thing as “fully insured” for any type of insurance.
That is true whether one is discussing Auto, Home, or any type of Business Insurance.
You see, though many insurance policies are very broad in the coverage they provide, exclusions and limitations exist with any program.
When discussing insurance with a potential contractor, it is always fair to ask
“What specific forms of coverage do you have in place?”
To start, a Contractor should have the following policies in their portfolio:
- General Liability Insurance Coverage
- Business Auto Coverage and
- Workers Compensation and NYS Disability (if they have employees.)
When requesting an estimate for work they are going to do on your behalf, you can also ask your contractor if they can provide you with a “Certificate of Insurance” that shows the types of policies and limits of the coverage they carry.
If they are “fully insured” as claimed, this should be easy to obtain. A phone call to their agent to provide the certificate directly to you as a customer is all it should take.
On the certificate, you might ask that the insurance agent actually state under the “Description of Operations” section, what type of contracting classifications they are insured for.
Any Certificate provided should show a current date on the top of the form and effective dates for the policies they have that fall within the date the certificate is issued. A sample Certificate of insurance can be see below:
Any contractor who purports that they are “fully insured” should be quick to provide you with a Certificate as outline above.
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“Am I covered if I drive someone else’s car?” Or, “Am I covered if someone else drives mine?”
Many don’t realize that the insurance industry is one of the country's most regulated business segments, especially in New York State. The New York State Department of Financial Services (NYS DFS) wields significant control over the insurance business and has a stated goal of protecting consumers.
Most property insurance companies offer Actual Cash Value or Replacement Cost settlement options. Typically, insurance companies will require that you insure the property to the settlement value you choose. If you select Actual Cash Value, the amount you may be required to insure the property for will be less than the corresponding Replacement Value.
In that spirit, the Ryan Agency is sponsoring a Stearns BBQ Dinner pickup at our office on 57 Broadway Mall in Hornell on September 12th from 3:00 PM to 4:30 PM.
Today, an individual’s credit history can play a more significant role than any one of those traditional factors. Good Credit Scores lead to a Positive Insurance score. A good Insurance Score greatly influences what someone will pay to insure their vehicles.
Insurance companies offer various discounts for which their policyholders may qualify.
Great Eight number Six (6) suggests taking a look at removing Comprehensive and Collision on Older Vehicles.
By reducing the number of claims in your insurance history, you can significantly affect your rates in the future.
Sometimes, this concept meets with resistance from policyholders. The thought of paying more in the event of a claim is off-putting to some. Even if that means I pay more for my insurance.
OK. Admittedly, this strategy doesn't benefit everyone, but it can be very beneficial for those it does. You may have unique home or auto insurance needs that prevent you from bundling with the same company. Alternatively… you might have a better rate without the bundle discount by splitting up your insurance between multiple carriers.
