Hard to place insurance is not impossible to place.
Although being a General Contractor (GC) and Construction Manager (CM) may sound like the same type of position, the difference is often overlooked in the industry. The difference between positions equates to a difference between the type of construction insurance needed.
A General Contractor “agrees to build the entire project—they’re the party ultimately responsible for the timely and proper performance of the work for a set price.”
The general contractor isn’t doing the manual labor at the job site, but instead managing the subcontractors who do.
In terms of insurance as a general contractor, general liability insurance is the type of high-risk coverage you should be looking toward. With construction coverage, there are specific risks to be made aware of, including:
- Canceled or non-renewed insurance coverage
- Repeated rejection from multiple carriers within a short time period
- Shock losses
- The high volume of small claims
- High risk of property damage, illness, injury, or death
On the other hand, a Construction Manager, “is a consultant hired by a developer or property owner to manage and oversee the performance of contractors that they’ve hired. The developer, owner, etc. hire each of these contractors directly.”
When you’re a construction manager, the type of insurance that will give you the best coverage is professional liability insurance.
The main difference between a GC and CM is the legality behind their hiring process, including coverage. The CM is hired, for lack of a better word, as a consultant whereas a GC is given a distinct payment with the job fully in their hands. The construction business needs to be protected with high-risk coverage, and Competitive Edge specialized in construction coverage.
At Competitive Edge Insurance, we work with insurance carriers across the country to place all types of business coverage. We are always seeking out new insurance companies to write hard-to-place and high-risk business insurance.
Don’t let cancellation dissuade you from finding comprehensive coverage. We can help! Learn more by connecting with Competitive Edge Insurance today.