KNOWLEDGE CENTER

THE FACTS ABOUT GENERAL LIABILITY INSURANCE

As of October 1, 2001 all California Contractors are legally required to disclose to homeowners, in writing, whether or not they carry General Liability Insurance. If the contractor does carry General Liability Coverage he is then required to provide the name and phone number of his insurance company to the homeowner. Any time you, the contractor, do a job for someone there is a chance that you could be sued, whether you are legally liable or not. A General Liability Policy typically obligates the insurance company to defend you against all allegations that, if true, would be covered by the policy. The policy also obligates the insurance company to pay damages, up to the policy limit, for which you are legally liable.
Commercial General Liability Insurance typically provides coverage for liability losses originating from premises, operations, products, and completed operations exposures. A liability loss is any cost to a person or organization as a result of a specific claim or suit.

Premises Liability Exposure
The premises liability exposure is present whenever there is ownership or use of property. The responsibility imposed on the owner, landlord, tenant, or occupant is that the property must be maintained in a way that would be expected of a reasonable person. For example, a reasonable person would not leave frayed or unwrapped electrical cords lying around where someone could potentially come into contact with them and electrocute themselves.

Operations Liability Exposure
The operations liability exposure is usually associated with processors, manufacturers, and contractors, and relates to activity in addition to the occupancy of property. For example, if a contractor is working on a public building and a member of the public is injured because of negligent construction activity, the contractor will be held legally liable for the injury.

Products Liability Exposure
The products liability exposure deals with the possibility that a product manufactured, sold, or distributed by an organization might injure a member of the public. For example, if a contractor is injured because of a defective utility knife the company that manufactured and sold that utility knife could be held legally liable.

Completed Operations Liability Exposure
The completed operations liability exposure is especially dangerous for contractors. This exposure allows the public to hold a contractor liable for any work that he has completed within the last ten years. (After ten years the contractor is absolved of any responsibility due to the Statute of Limitations.) For example, if a contractor buys a bathtub and installs it he is then liable for that bathtub for a period of ten years.
The purpose summary of general liability is to inform contractors about the dangers of working without General Liability Coverage, or of purchasing policies that have inadequate limits and/ or coverage’s. If you have any questions, or if you would like to obtain an obligation free general liability quote, feel free to contact us at 619-954-3540

FACTS ABOUT WORKER’S COMPENSATION

All organizations that have employees are required by the state of California to carry Workers Compensation Insurance. This form of insurance responds to two different types of loss exposures. One is the employer’s legal responsibility to pay required workers compensation benefits to employees. The other is the possibility of an employee or some other person or organization making a liability claim against the employer for bodily injury to an employee. These two loss exposures leave employers extremely vulnerable, regardless of the number of employees they have.

The laws on the books at this time provide “no-fault” protection by elimination the right of employees to sue their employers while obligating employers to compensate injured employees even if negligence is not involved. In exchange for definite payment the employer’s liability is limited. For example, if you are the owner of a construction company and one of your employees injures his back by falling off of an extension ladder, you must pay compensation to that employee, regardless of whether negligence was involved in the accident.

Every employer has an obligation to exhibit the means to pay all claims that may arise out or a worker’s compensation suit. One way an employer can meet this obligation is by purchasing a Workers Compensation Policy through a private insurance company or an insurance brokerage. As an insurance brokerage QRS has an advantage over private insurance companies because we are able to shop the insurance market for the most competitive rates. If you have any questions, or if you would like to obtain an obligation free workers compensation quote, feel free to contact us at 619-954-3540

FACTS ABOUT COMMERCIAL PROPERTY INSURANCE

Commercial Property Insurance is a necessity for any business, big or small. Financial institutions that lend money based on a security interest in property want to be sure the buyer can repay the loan even if the property is destroyed. Because of this, one of the fundamental requirements for mortgages and most other loans is that the insurance company name the lender as the loss payee.

Commercial Property Insurance covers the following categories of property; buildings, the business personal property of the insured, and the personal property of others while it is in the custody of the insured.

Building
The definition of building includes the following property:?1. Completed additions to covered buildings?2. Fixtures, including outdoor fixtures?3. Permanently installed machinery and equipment?4. Personal property owned by the insured and used to maintain or service the building or its premises (For example, fire extinguishers and floor coverings)

Business Personal Property of the Insured
Business personal property is any property owned by the insured and used in the insured’s business. It must be in or on the described building or in the open (or a vehicle) within 100 feet of the premises. Business personal property can include labor, materials, or services furnished by the insured on the personal property of others, or stock. Stock is defined as “merchandise held in storage or for sale, raw materials and in-process or finished goods, including supplies used in their packaging and shipping.”

Personal Property of Others
This coverage is primarily designed for those businesses that have their customers’ property in their care. For example, this coverage would be necessary for a business such as an auto repair shop because their customers’ cars are left within the care of the business.

If you have any questions, or if you would like to obtain an obligation free quote, feel free to contact QRS at 619-954-3540

FACTS ABOUT COMMERCIAL AUTO INSURANCE

Commercial Automobile Insurance is one of the most misunderstood types of insurance that contractors must deal with. Many people assume that once they purchase a personal automobile policy their work vehicles will be covered. However, the typical Personal Automobile Policy excludes vehicles used for Commercial and Business purposes.

Any organizations that own or use autos are exposed to auto liability. Liability can arise from the business use of hired autos, or from the use of employees’ autos on behalf of the business.

Owned Autos
Any time an employee of an organization operates an auto owned by that organization the employer is legally liable for any damages that the employee may incur. For example, if you are the owner of a construction company and you tell one of your employees to take your truck down to the lumberyard you are responsible for any damages or injuries that your employee may cause. This is because your employee was acting on your behalf at the time of the loss.

Autos Not Owned
Hired and Non-owned Autos?Any autos that are leased or rented by an organization become the responsibility of that organization. This means the organization can be held legally liable for injury resulting from the use of the vehicle. The organization can also be held liable for any damage to the auto itself.

Employers Non-ownership Liability?Some employees use their own vehicles to perform their job duties. For example, you tell one of your employees to take his truck and pick up some material down at the local lumberyard. Because the vehicle is being used to further your business, you are exposed to liability. Insurance for employers non-ownership liability can be arranged under all commercial auto liability forms.

When purchasing a Commercial Automobile Insurance Policy be as accurate as you can in your descriptions of the types of autos that you own, and how you intend to use them. Information that is to general may result in a policy that does not cover you completely. If you have any questions feel free to contact QRS at 619-954-3540

FACTS ABOUT TOOLS & EQUIPMENT INSURANCE

A policy that insures contractor’s equipment other than vehicles designed for use on the public highways. Many contractors have considerable investment in large pieces of moveable equipment, such as cranes, power shovels, tractors, etc. These items can be scheduled specifically on the policy, while a blanket amount takes care of smaller items such as tools. Coverage can be tailored to suit the needs of the insured. It may be “all-risk” or broad names perils. A large enough deductible to eliminate smaller, petty pilferage losses generally is preferred. A common misconception by contractors is that their tools and equipment will be covered under their commercial general liability insurance. Call our office today to obtain a no obligation quote to cover your assets. 619-954-3540

Jennifer Hoffa Rye
Insurance Broker

CA Lic# OC36189 JRYE@QRSINSURANCE.COM
619.954.3540

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