Excess and Umbrella Insurance Explained

Excess and umbrella liability are common terms in the general liability, commercial auto, and employer’s liability insurance industries. Because the two policy types can fit perfectly into different branches of the insurance industry, many people confused them one for another. While they are sometimes used interchangeably, a closer look at the two will clearly show that excess and umbrella policies are not one or the same.

Excess Liability Insurance Defined

Excess liability, in its purest form, provides coverage above the limits of an underlying liability policy. Its primary purpose is to add some layers of protection if the underlying policy is exhausted. If for instance you have an insurance policy that only covers $500,000 damages, and there is a lawsuit where you are liable of $700,000 loss, you will be allowed to file claims for the excess liability of the remaining $200,000.

Umbrella Insurance Defined

Umbrella insurance is a type of policy that provides coverage beyond and above the standard liability limits. It serves almost the same purpose as excess liability insurance, but with some more inclusions.

To enjoy an umbrella insurance coverage beyond the underlying policy, you will need to pay self-insured retention (SIR). A SIR is the dollar amount agreed upon in liability insurance which you must pay before an insurance company responds to the loss. Once you have paid to the tune of the SIR, your insurer will take on the rest.

What is an Underlying Policy By the Way?

The underlying policy is the insurance coverage set at the initial stage of a policy to protect against specified risks and losses. Secondary policy provisions like excess liability and umbrella policy come into play when the damage is more than the established coverage.

What Are the Key Differences Between Excess and Umbrella Policies?

The major difference between the two is as follows:

Excess Liability

It provides you with additional limits to the underlying policy without affecting the actual terms of the contract. For example, if your excess liability is for general liability insurance, you cannot use it for another policy. Keep in mind though that this may not be the case if a policy includes additional exclusions.

Umbrella Insurance

On the broader (plus side, if you will), umbrella insurance can provide additional coverage in cases outside the scope of the underlying policy.

Why You Need an Umbrella or Excess Liability Insurance

With the increased rate of lawsuits emanating from liability and damages, there has not been a time when extra coverage is more needed. Lawyers are now charging hundreds of dollars per hour. Furthermore, there are financial responsibility laws that hold people accountable for damages and injuries caused by their businesses or properties, in almost all the 50 states. Most basic insurance policies have limits. Without extra coverage, your business could experience a bankruptcy as a result of loss from just one lawsuit. You may also lose your personal assets along the line. It is, therefore, a necessity to have some levels of buffers in your risk management approach.

Contractors Insurance: The Importance of Additional Endorsements

It does not matter which sector you operate in as a contractor, the need for financial protection cannot be overemphasized. Apart from meeting the requirements of the law, having a contractor’s insurance policy will help protect you against liability from damages and lawsuit.

How Does It Work

Contractor insurance primarily serves as a risk management tool that gives financial protection when your business is involved in peril or accident that causes financial loss. It is a contract between a firm and an insurance company. You will be charged a specified premium amount as the cost for the financial coverage, which will be provided by the insurance company in the eventuality of damages. You will have the liberty to choose the kinds of disasters or accidents you would want protection for, which will basically depend on your needs, budget, and/or preferences. The financial coverage will be offered according to the dictates of the contract signed.

Additional Insured Endorsements for Contractors

In most cases, basic contractor insurance policies don’t offer robust coverage that will best serve policyholders’ business interests. There are some projects you will need to subcontract, and would like to have coverage for as many subcontractors working with you. Your basic contractor insurance will not cover those subcontractors; hence, the need for additional endorsements to fill the vacuum.

How to Get Additional Endorsement

Just like every other insurance policy, getting additional endorsement comes with certain requirements, restrictions and complications, which must be understood from the onset.

To start with, you will need to define those you want to add in the endorsements clearly. The added insured can be an individual or an organization. There are different languages for additional endorsements for different purposes. You may get it for ongoing operation or completed operation.

Ongoing Operations

The language (terms and conditions) of an ongoing operation will be amended to accommodate the added insured individual or organization in the “WHO IS INSURED” definition of the contract. It will only address liability or loss arising from ongoing operations caused by the named entities.

Completed Operations

Completed operation option provides coverage against liability, loss, or injury to a third party once the contracted operation ceases. It is a crucial financial tool that provides relieves and helps you maintain stability in your business. Take, for instance, a roofing project you completed six months ago started linking, and you are sued by the property owner. Instead of dolling out repair cost from your pocket, your completed operation additional endorsement will come to your rescue.

If any lawsuit emanates from the contract, court judgment will be based within the scope of the language in the contractual agreement. It is therefore essential to understand the terms of a policy to the letter.

Blanket Additional Insured Endorsement

Also known as an automatic endorsement – blanket additional insured endorsement is designed to automatically accommodate those entities or individuals that were not initially named in the agreement.

Who Needs Additional Insured Endorsement?

An additional insured endorsement is a must-have debt management tool for every small, medium, and large scale contractor in the United States. Having it will help save your business from distress and bankruptcy resulting from a lawsuit.

What Is A Surety bond?

What Is A Surety bond?

A surety bond is a contractual agreement that involves three parties, namely the principal, the surety, and the obligee. It is a risk management plan primarily designed to ensure commitment towards an agreement in business practices. If you are a contractor, you may not be able to bid for or get some contracts without a surety bond. Also, as a business owner, a surety bond will be required in some legal claims and to obtain certain licenses.

Understanding the Three Parties In a Surety Bond Agreement

  1. The Principal

The principal is the entity (business or individual) in need of a surety bond as a form of guarantee for future work performance. A surety bond is used for different purposes, such as getting a business license, completing a court case, guaranteeing business protection, or completing a contract. If there are damages or a breach of contract on the part of the principal, the claims will be settled by the company that issued the bond.

  1. The Obligee

The obligee of a surety bond is usually a legal entity, such as government agencies. It is the entity that requires a surety bond from a business outfit before offering them a contract. This is in line with the Miller Act passed in 1935, which helps protect the public interest from local contractors. The surety bond will help reduce the likelihood of financial loss and ensure commitments to contractual agreement from the principal.

  1. The Surety

The surety is a risk management company (usually an insurance carrier or a bank) that is responsible for the bond payment if there is a damage caused by the principal. If the obligee files acclaim for damages, the surety will initially cover the cost. With that, the interests of both the principal and the obligee will be timely protected. Although, the full cost of the damages will still be fully paid back by the principal, but at a later date.

How Does a Surety Bond Works?

There are thousands of bonds in the US regulated by each state government. Amounts and requirements are dependent on what applies in a state. Surety bonds are broadly categorized into two types, namely contract and commercial surety bonds.

  1. Contract Surety Bonds

Contract surety bonds usually required by government agencies to serve two primary goals. It helps ensure that a contractor completes a project he undertakes. Also, it helps to ensure subcontractors are paid the agreed sum by the contractor. It has three major types, which are:

-       Bid Bonds: A bid bond is used when bidding for a contract. It is to show that your company is financially capable and has all the required resources to get the job done.

-       Performance Bonds: If you are choosing for the project, you will be required to present a performance bid to guarantee satisfactory completion of the project. In case of failure to complete the job as agreed, the surety company will be held responsible for the completion.

-       Payment Bonds: If all things went as planned and the project is completed, then you will need to pay your subcontractors. A payment bond is to ensure that all parties that worked on the projects are as agreed.

  1. Commercial Surety Bonds

There are thousands of bond types under this category, and each is named after its purpose. They are mostly required in license or business registration, or legal cases. Examples are License and Permits Bonds and Court Bonds


What is DOT Number?

A DOT or United States Department of Transportation Number is issued by the Federal Motor Carrier Safety Administration (FMCSA). It is a unique identifier assigned to companies operating commercial transportation services, either for cargo haulage or transporting of passengers. The primary role of FMCSA is to improve highway safety for all road users. The agency uses the DOT number for different purposes. They include compliance reviews, audits, collecting safety information, crash investigations, and compliance reviews for certain vehicles engaging in interstate commerce. Registering a USDOT number involves several requirements, and one of the basic requirements is insurance coverage.

Do I Need a DOT Number?

You will be required to file a USDOT number in most states in the United States if you own a commercial vehicle that:

-       Weighs more than 10,000 pounds

-       Plies the interstate routes

-       Transports up to 8 passengers for payment

-       Transports  more than 15 passengers for compensation, even if you don’t carry them for payment

-       Transports materials deemed hazardous by the Secretary of Transport

Operating Authorities Under FMSCA

A certain amount of insurance coverage is required to get an operating license and meet other obligations in the US commercial transport industry. As a commercial vehicle operator, the type of operation your company can run, types of cargo you are permitted to carry, and the insurance requirements will be dependent on which operating authority granted to you by FRSCA. The following are some of the operating authorities under FMSCA:

-       Household Goods Motor Carrier: This is for vehicles that transport household goods for general household use from factories or stores.

-       Motor Carrier of Property (Except Household Goods):  This authority is granted to for-hire motor carriers transporting regulated goods, except household goods.

-       Broker Household Goods: This applies to individuals, corporations, or partnerships that arrange transportation of household goods for compensation.

-       Broker of Property: This is for individuals or companies that arrange transportation of property for compensation, except household items.

-       United States-Based Enterprise Carrier of International Cargo

-       United States-Based Enterprise Carrier of International Cargo (Except Household Goods)

Having ascertained the type of operating authority your company requires, you will need to obtain and submit proof of the appropriate insurance coverage to the FMSCA in order to get a USDOT number.

Types of Insurance Coverage Required for FSCSA Registration

Most of the operating authorities explained above have various types of amount of insurance coverage requirements. Some of them are:

-       Public Liability Insurance: This is meant to cover liabilities from property damage, environmental restoration, and bodily injury. The required coverage amounts are  $750,000 to $5 million for freight, $3,000 for non-hazardous freight transported in vehicles weighing 10,000 pounds or less, and $5,000,000 for passengers.

-       Proof of cargo insurance: This is required for both household goods motor carriers and freight forwarders. The coverage amount is $5,000 per vehicle and $10,000 per occurrence.

-       A Surety Bond: This is for both brokers of freight and freight forwarders. A surety bond of $75,000 and a trust fund agreement of $75,000.

-       Service of Process Agents for all operating authorities

-       Endorsement for Motor Carrier Policies of Insurance

After completing your registration, your operations will be monitored under the New Entrant Safety Assurance Program for 18 months. If after the 18 months, you are deemed to be compliant with the regulations, you will then be issued a permanent operating authority.

Business Owners Insurance Policy

Business Owners Insurance Policy 

A business owner policy (BOP) is a unique insurance type designed to protect major physical assets of a business, and also cover the business against liability risks. Business owner’s policy is sold is offered by property and casualty insurance companies and offers multiple types of coverage. Depending on the degree of physical damage to a commercial property or lawsuit from injured third-party, some events are capable of bankrupting your business, if you lack reliable adequate insurance coverage.  As a small or medium-sized business owner, your needs for business owner’s insurance cannot be overemphasized.

Why Do I Need Business Owner Insurance Policy?

Business owner policy has two packages combined in one policy, as it covers both commercial property and general liability. Damage to property and equipment, a lawsuit from third-party, and lack of working capital are three major factors that mostly affect the general performance of a business. These three crucial factors are what business owner policy covers as follows:

Commercial Property Insurance

Commercial property insurance protects your business against any damage to its physical assets due to vandalism, theft, fire or any kind of accidental damage. Your commercial building, equipment and fixtures are some of the properties generally covered by this product.

Liability Insurance Protection

Liability insurance covers any legal responsibility your business is held for as a result of harm done to others. This could be financial loss, bodily injury or property damage to third-person as a result of the failure or errors from your business activities.

Business Interruption Insurance

 If regular business activities are interrupted as a result of mechanical breakdown, fire or vandalism, theft or a covered disaster, a company without a reliable financial protection may be forced to slow down or stop operations. With business interruption insurance, the effects will be mitigated, and your company will be well protected. The coverage usually includes the income lost for that moment of interruption and the extra cost of operating from a temporary location.

How to Get a Business Owners Insurance Policy

Before buying a business insurance policy, the following are some of the things you need to consider:

Eligibility Criteria

As with other insurance types, BOP eligibility is determined by specific criteria, depending on the company and the product. Generally, for a business to be qualified, the requirements include:

-          Having less than 100 employees

-          The building size must not exceed 100,000 square feet or six  stories if it is an office

-          The building size must not be larger than 35,000 square feet if it is for wholesale, mercantile, or processing

-          The annual revenue must be more than $1 million

-          The business must be in a low-risk industry.

Talk to a Business Insurance Broker

Just like every other important financial decision, you must do your due diligence and grasp the concept of how BOP works for your business line. An insurance borker, preferably, an expert in the business insurance policy will help you have a better understanding of it and guide you on how to buy and make the most of your business owners policy.

Free Businessowners Policy Insurance Quotes

To save money on your business insurance policy, call Safepro Insurance Services and speak to a commercial insurance broker.

Builders Risk Insurance Explained

Builders Risk Insurance Explained

Builders Risk Insurance, which sometimes referred to as Course of Construction or Inland Marine Coverage, is a special type of property insurance. It is designed to cover a building that is currently under construction. Its coverage can be just for the building, or with other materials meant to be used for the construction; either at the construction site or at off-site storage locations and in transit.

Builders risk insurance policy can be purchased for either residential or commercial building project. The definitions of “residential” or “commercial” however, varies among the policy providers. For instance, some insurance companies may define a residential building as a family home for 1 to 4 numbers of occupants.  A commercial project could be anything from the shopping complex, office buildings, and sports arena. The policy is usually provided for three kinds of construction projects, namely:

-          Ground-up new construction;

-          Remodelling; and

-          Installation

How Does Builders Risk Insurance Work?

Just like every other insurance type, the builders risk insurance risk policy is a risk management financial plan, which pays for damages up to the coverage limit. The policy term could be for 3months, 6months, or 12 months, depending on the size of the project. In the event that the project isn’t completed when the policy expires, you can negotiate with your policy provider for an extension.

What Does Builders Risk Insurance Cover?

Damages from events such as fire, wind, explosion, vandalism, hail vehicles, are often covered by the policy. In some cases, limited coverage may be made available for building collapse. Comprehensive coverage may also include damages from events like earthquake, war, weather to property, mechanical breakdown, flood, and theft.

Keep in mind, however, that liabilities from injuries and accidents, and professional liability are excluded from the coverage. You may get stand-alone liability insurance for this purpose. Also, if you have subcontractors working on the same project, they will need to get their own insurance separately. The policy coverage is restricted to the building it is purchased for, and will not cover property belonging to other people.

Who Needs Builders Risk Insurance?

Builders risk is a crucial insurance policy that is essential for those who are into building construction. Having it will significantly help in averting potential financial loss from common damages in building construction. It will also help protect your reputation as a builder. You will most likely need builders risk insurance if you are a:



Homeowner or property owner

Development or investment company owner

House flipper

How Much Builders Risk Insurance Do I Need?

There’s no one-cap-fits-all to this. The budget for the building will determine how much policy you will need.   Generally, builders risk insurance price ranges from 1% to 4% of the total construction cost. The exact policy amount will depend on the number or the kinds of items you want the policy to cover. While you will want to be prudent with your budget, it is essential not to leave out crucial aspects, including soft costs of the project. This will guarantee adequate coverage when the need arises. When shopping for a builders risk insurance policy, do ensure that you patronize a reputable insurance company that will guarantee a prompt response to your claims.

In order to receive a quote on builder’s risk insurance, please click on the following link:





Commercial General Liability

Commercial General Liability Explained

A commercial general liability (GCL) is an insurance policy that protects you and your business from a financial loss. Your company may be liable for injuries or damages to a third party resulting from the services or products you offer to the general public. Liabilities do arise from accident, error (by omission or commission), or non-professional negligence that causes another person harm or financial loss. No matter how highly trained and professional you and your employees are, you can’t completely rule out certain unwanted and unforeseen circumstances.

How Does Commercial General Liability Work?

Commercial general liability is a risk management plan that specifically covers your business from claims from a third person. Depending on a company’s line of business, A CGL policy can be designed to cover different eventualities under the following basic categories:

-       Bodily Injury  Liability

If a customer or any other individual visits your business site and gets injured, you may have to cover the medical payment. Body injury coverage implies that certain negligence has caused the event. Sometimes you may not directly cause the injury, but so long it happens within your business premises, you may still be found legally negligent. For instance, the injured person may claim he slips because you fail to place warnings signs around the wet floor. CGL insurance policy covers hospital bills and nursing expenses for an injury. Also, it covers funeral expenses if someone is injured and killed in an accident on your business premises.

-       Property Damage Liability:

If your business is found liable for damages to a third party’s physical property either on or off-premises, the policy will help you mitigate the financial cost of the liability. Third party’s property damages could be directly from your business activity or from a product offer. For example, if a home appliance which your company produced malfunctioned and caused a fire incident to a buyer’s property. You may be liable under non-professional negligent acts.

-       Personal and Advertising Injury Liability:

This helps cover your company from any legal responsibility arising from business infractions such as libel, copyright infringement, false arrest, entry or eviction of privacy, and slander.

Who Needs CGL Insurance?

Every business owner needs a CGL policy to help secure their businesses from legal suit that can adversely affect their trajectory. Liability payment for just a single legal action against your business could cause an irrecoverable bankruptcy and reputation damage. You can prevent such by insuring your company with a CGL policy customized for your line of business. The policy can be bought as a stand-alone coverage, as part of Commercial Package Policy, or as part of a Business Owners Policy.   CGL policy is a must-have whether you are a contractor or a tradesperson.

Does CGL Cover Workers Compensation?

Insurance regulations for businesses often set a distinction between coverage for the general public and the employees. CGL is meant to cover third-person, and it doesn’t cover employment practices liability and workers compensation. A workers compensation policy, which also covers employers liability, can be bought as a separate policy.

Commercial Property Insurance Classification

Commercial Property Insurance Classification: 

Air Conditioning, Heating, and Refrigeration Dealers

Aircraft – stored in the open

Aircraft Parts and Accessories Dealers.

Airline Passenger Terminals

Airplane Hangars – no repairing

Airplane Hangars – with repairing

Amusement Equipment – outside

Amusement Parks – recreational buildings

Anhydrous Ammonia Dist.

Antique Shops

Apartment Hotels – no restaurant

Apartment Hotels – with restaurant

Apartment Mercantile


Apartments – condominiums

Apartments – garden

Appliance Sales – not televisions, radios, or phonographs

Appliance Sales – sewing machines

Appliance Sales – televisions, radios, or phonographs

Appliance Service – not televisions, radios, or phonographs

Appliance Service – sewing machines

Appliance Service – televisions, radios, or phonographs

Archery Ranges – recreational buildings


Army and Navy Stores

Army Post Exchanges

Art Galleries – not commercial

Art Galleries – sales

Art Studios

Art Supply Stores


Athletic Equipment and Sporting Goods Stores – retail

Athletic Equipment and Sporting Goods Stores – wholesale

Auction Galleries – furniture

Auction Galleries – not furniture

Auditoriums – no scenery

Auditoriums – with scenery

Automobile Body Repair Shops

Automobile Car Washes

Automobile Garages – parking or storage

Automobile Glass Shops

Automobile Paint Shops

Automobile Part or Accessory Stores

Automobile Repair Shops

Automobile Sales – no service

Automobile Sales – office only

Automobile Sales and Service

Automobile Salvage – wrecking stores

Automobile Salvage – wrecking yards

Automobile Seat Cover or Top Shops

Automobile Service Stations Automobile Tires – see tires

Automobile Washes

Bakeries – retail – no baking

Bakeries – retail with baking

Bakeries – wholesale – no baking


Barber and Beauty Supply Stores

Barber Shops

Bars – no cooking

Bars – with cooking

Baseball Parks – grand stands or bleachers

Baseball Parks – recreational buildings



Beauty and Barber Supply Stores

Beauty Parlors

Bedspread or Blanket Stores – retail

Bedspread or Blanket Stores – wholesale

Beer Stores

Beverage Stores – non-alcoholic

Bicycle Rental

Bicycle Service

Bicycle Stores


Billiard or Pool Halls

Blanket or Bedspread Stores – retail

Blanket or Bedspread Stores – wholesale

Bleachers – outside

Blood Banks

Boarding Houses

Boat Dlrs. – no repairs

Boat Docks

Boat Repair Shops

Boat Storage – buildings

Boat Storage – yards

Book Stores – second hand

Book, Magazine, and Stationary Stores

Booths – exhibit – outside

Bowling Alleys


Builders’ Risks

Building and Loan Assn. Offices

Building Material Dlrs. – not second hand

Building Material Dlrs. – stores – second hand

Building Materials Dlrs. – yards – second hand

Bus Stations or Terminals


Camera Stores

Camps – all buildings except dwellings

Candy Stores – no food served

Car Washes

Carpet or Rug Cleaners

Carpet or Rug Stores


Caves – recreational

Cemeteries – all buildings except dwellings

Cemeteries – tombstones

Chemical Laboratories

Children and Infants Clothing Stores

China and Glassware Stores

Churches and Synagogues – including auxiliary buildings, except dwellings, habitational, or schools

Cleaners and Dyers Plants

Cleaners and Dyers Receiving Stations

Clinics, Dispensaries, and Infirmaries – offices only

Clinics, Dispensaries, and Infirmaries – other than offices

Clothing Stores – children and infants

Clothing Stores – men and boys 14 years or older

Clothing Stores – other

Clothing Stores – see Army and Navy, Department, Discount, Furs, Millinery, Mens Haberdashery, Neckties, Shoes, and Womens Specialty.

Clothing Stores – women and girls 14 years or older

Clubs – country, golf, polo, tennis – no cooking

Clubs – country, golf, polo, tennis – with cooking

Clubs – health

Clubs – lodges, fraternal

Clubs – riding

Clubs – swimming

Coal Yards

Coal, Fuel, Oil, Wood, or Ice Dlrs.

Coffee Stores

Coin or Stamp Stores

Cold Storage Plants – lockers

Concessions – check room, etc.

Condominiums – apartments

Condominiums – apartments -

Confectionary Stores – food served, no cooking

Confectionary Stores – no food served

Confectionary Stores – with cooking

Contractors – Construction and Maintenance -

Contractors – construction and maintenance – offices

Convalescent or Nursing Homes

Convention Buildings


Copy and Duplicating Services

Cosmetics Dlrs. – wholesale

Cosmetics Stores – retail

Cotton Compresses

Cotton Merchants

Cotton Storage Warehouses – baled


Currency Exchanges

Dairy Product Stores – food served, no cooking

Dairy Product Stores – no food served

Dairy Product Stores – with cooking

Dance Halls

Day Nurseries

Dealers – see store listings

Delicatessens – no cooking

Delicatessens – with cooking

Dental Laboratories

Department Stores

Diaper Service Laundries

Discount Stores

Dog Kennels

Door, Window, and Millwork Dlrs.



Dressmaking Shops

Drug Stores – retail

Drug Stores – wholesale

Dry Cleaners – plants

Dry Cleaners – receiving stations

Dry Goods Stores – retail

Dry Goods Stores – wholesale


Electric Power Co.

Electronic Data Processing Centers

Engine Repair – small engine

Engraving – not photo engraving

Equipment and Fixtures Dlrs. – store, office, restaurant, hotel, or bar

Equipment Rental Dlrs. – no television

Equipment Rental Dlrs. – with television

Equipment, Furniture, and Fixtures Dlrs. – store, office, restaurant, hotel, or bar

Exercise Studios

Exhibition Buildings

Exterminators or Fumigators – office

Exterminators or Fumigators – other

Fabric Stores – retail

Fabric Stores – wholesale

Fair Grounds – buildings

Fair Grounds – stands and booths

Farm Machinery and Equipment Sales

Farm Tractor Sales – with repairing

Farm Tractor Sales – without repairing

Feed, Hay, and Grain Stores

Fire Extinguisher Service

Fire Stations

Five and Ten Cent Stores

Fixtures and Equipment Dlrs. – store, office, restaurant, hotel, and bar

Fixtures, Furniture, and Equipment Dlrs. – store, office, restaurant, hotel, and bar

Florists – greenhouses – including boiler rooms and sheds

Florists – shops – retail

Florists – wholesale

Fraternity Houses

Freight Terminals – no explosives

Freight Terminals – with explosives

Frozen Food Dlrs. – meat, fish, or poultry

Frozen Food Dlrs. – not meat, fish, or poultry

Fruit or Vegetable Stores – retail

Fruit or Vegetable Stores – wholesale

Fuel Oil, Gasoline, or Kerosene Dlrs.

Fumigators or Exterminators – office

Fumigators or Exterminators – other

Funeral Homes

Fur Stores – including pelts

Furniture Stores – including house furnishings

Garbage Works – reduction or incineration

Gas Companies

Gas Dlrs. – liquified petroleum gas

Gasoline Dlrs.

Gasoline Stations – see Automobile Service Stations

Gemstone – cutting or polishing

General Stores

Gift Stores

Glass Shops

Glassware and China Stores

Golf Clubhouses

Golf Courses – miniature – buildings

Golf Driving Range – buildings

Grain Elevators – country

Grain Elevators – terminal



Greeting Card Stores

Grocery Dlrs. – wholesale

Grocery Stores – retail – over 4000 square feet

Grocery Stores – retail – small

Grocery Stores – retail receipts of $500,000 or more and area over 3,000 square feet

Gunsmith Shops

Hair Stylist or Designer Salons

Halls – other

Halls – union

Hardware Stores – retail

Hardware Stores – wholesale

Hatcheries – poultry

Health Clubs

Hearing Aid Stores

Heating, Air Conditioning, and Refrigeration Dlrs.

Hide Stores – raw – not furs or pelts

Hobby Stores

Homes for Aged

Hosiery Stores


Hospitals – veterinary

Hospitals Equipment Rental Stores

Hotels – no restaurant

Hotels – with restaurant

Household Appliance Stores – not radios, televisions, or phonographs

Household Appliance Stores – radios, televisions, or phonographs

Household Appliance Stores – sewing machines

Housing Projects

Ice Cream Stores – no cooking

Ice Cream Stores – with cooking

Ice Dlrs.

includes restaurants

Iron or Steel Dlrs. – not scrap

Iron or Steel Dlrs. – scrap

Ivory or Ivory Products Dlrs.


Janitors Supply Dlrs.

Jewelry Stores – retail – imitation or novelty

Jewelry Stores – retail – other

Jewelry Stores – wholesale – imitation or novelty

Jewelry Stores – wholesale – other

Juice and Syrup Sales

Junk Dlrs. – buildings

Junk Dlrs. – yards

Kennels – dogs and pets

Laboratories – chemical

Laboratories – dental

Laboratories – medical

Laboratories – photo finishing

Laboratories – research, development, and testing

Laboratories – X-ray

Laundries – plants

Laundries – receiving stations

Laundries – self-service

Leather or Hides Stores – heavy, rough, or sole leather

Leather Products Stores

Libraries – commercial

Libraries – other

Light Bulb or Tube Stores

Lighting Fixture Stores

Liquor Stores

Livestock Sales Barns

Locksmiths Shops

Luggage Stores – leather

Luggage Stores – other

Lumberyards – buildings

Lumberyards – yards

Machinery or Equipment Dlrs. – farm – includes repairing

Machinery or Equipment Dlrs. – mobile construction or industrial – no repairing

Machinery or Equipment Dlrs. – mobile construction or industrial – with repairing

Machinery or Equipment Dlrs. – others – includes repairing

Machinery or Equipment Dlrs. – tractors only – no repairing

Machinery or Equipment Dlrs. – tractors only – with repairing

Magazine Dist.

Mail Order Houses

Marine Supply Dlrs.


Meat, Fish, Seafood, or Poultry Stores

Medical Laboratory

Mens and Boys Clothing Stores – 14 years or older

Mens Haberdashery Shops

Mental Institutions

Metal Scrap Dlrs.

Mill Yards

Millinery Shops


Mobile Home Parks – laundries – tenants only

Mobile Home Parks – offices

Mobile Home Parks – recreational buildings


Motels – no restaurant

Motels – with restaurants

Motion Picture Film Exchange

Motion Picture Production – Development, printing, editing, and subsequent operations

Motion Picture Studios

Motion Picture Theaters

Motion Picture Theaters – drive-in

Motion Picture Theaters – drive-in – speakers and screens

Museums – aquarium

Museums – commercial

Museums – other

Musical Instrument Stores – brass

Musical Instrument Stores – other

Navy Ships Service Departments

Necktie Stores

Newspaper and Magazine Stands

not bars, food, furniture, restaurant

not bars, food, restaurant (includes furniture)

not bars, restaurant (includes food)

not restaurant (includes bars)

Notion Stores

Nurseries – greenhouses

Nurseries – other

Nurseries – stock in the open

Nursery Schools

Nurses Homes

Nursing Homes

Office Fixture & Supply Dlrs.

Office Furniture, Fixture, and Supply Dlrs.

Office Machine Dlrs. – no computers

Office Machine Dlrs. – with computers

Office Machine Service

Office Services – mailing, addressing, copying, duplicating

Offices – government

Offices – other

Offices – physician, dentist

Oil Distributing, Terminals, and LPG Tank Farms – excluding stock

Oil Distributing, Terminals, and LPG Tank Farms – including stock

Oil or Gas Well Supply or Equipment Dlrs.

Oil Refineries – petroleum

Oil, Gasoline, or Kerosene Refineries

Optician Stores

Orphan Homes

Packaging Services – packing and crating

Paint or Wallpaper Stores

Painting or Picture Stores

Paper Product Stores

Parks – recreational buildings

Pawn Shops

Penal Institutions

Penny Arcades – recreational buildings

Pet Shops

Pharmacies – no cooking

Photo Finishing Laboratories

Photocopy and Duplication Services

Photographic Supplies Stores

Photography Studios

Picnic Grounds – recreational buildings

Playgrounds – recreational buildings

Plumbing Dlrs.

Police Stations

Pool and Billiard Halls

Precious Stone Stores

Precision and Scientific Tool and Instrument Stores

Premium or Coupon Redemption Stores

Produce Stores

Property in the Open

Psychopathic Institutions

Public Works – sewage

Public Works – water

Race Tracks – recreation buildings

Race Tracks – stables

Radio or Television Service Shops

Radio or Television Stations

Radio or Television Studios

Radio or Television Towers and Antenna

Rag Dlrs. – second hand

Record or Tape Stores – retail

Record or Tape Stores – wholesale

Recreational Centers – recreational buildings

Refreshment Stands – no cooking

Religious Goods Stores

Rental Service Stores – not contractors’ equipment

Rental Service Stores – not contractors’ equipment or television

Restaurant Fixture and Supply Dlrs.

Restaurant Furniture, Fixture, and Supply Dlrs.


Retail or Wholesale Stores -

Retirement Homes

Rifle Ranges – buildings

Rooming Houses

Rubber Stock Dlrs. – salvage

Rug or Carpet Cleaners

Sales Barns – stables

Salvage Goods Stores

Sanitariums – not hospitals

Savings and Loan Associations

Schools – bleachers or grandstands

Schools – commercial, business, or trade

Schools – dormitories – see dormitories

Schools – not commercial – including auxiliary buildings other than dormitories

Schools – stadiums

Second Hand Goods Stores

Seed, Feed, and Hay Stores

Service Risks – light hazard -

Service Risks – other -

Service Stations – see Automobile Service Stations

Sewage Works

Sewing Machine Sales

Sewing Machine Service

Shoe Repair Shops

Shoe Shine Shops

Shoe Stores – retail

Shoe Stores – wholesale

Shooting Galleries – recreational buildings

Sign Erection and Repair Shops

Sign Painting Shops – not spray

Sign Painting Shops – spray

Signs – outside

Sisters Homes

Skating Rinks – buildings – ice or roller

Sorority Houses

Sporting Goods and Athletic Equipment Stores – retail

Sporting Goods and Athletic Equipment Stores – wholesale

Stables – boarding, livery, and racing

Stables – private

Stables – riding clubs

Stables – sales


Stands – exhibit – outside

Stationary Stores

Steel or Iron Dlrs. – no scrap

Steel or Iron Dlrs. – scrap

Store and Office Fixture and Supply Dlrs.

Store and Office Furniture, Fixture, and Supply Dlrs.

Store Buildings – multiple occupancy

Store Buildings – single occupancy – see occupancy listing


Street Banners


Swimming Pools – buildings

Swimming Pools – outdoor

Tailor Shops

Taverns – no cooking

Taverns – with cooking

Taxidermist Shop

Television or Radio Service Shops

Television or Radio Stations

Television or Radio Studios

Television or Radio Towers and Antennas

Tennis or Handball Courts – buildings

Theaters – motion picture

Theaters – motion picture – drive-in

Theaters – motion picture – drive-in speakers and screens

Theaters – motion picture or television studios

Theaters – no scenery

Theaters – with scenery

Ticket Agencies – offices

Tie, Post, or Pole Yards

Tire Dlrs. – no recapping

Tire Dlrs. – with recapping

Tire Recapping or Retreading Shops

Tobacco Rehandling or Warehousing Buildings

Tobacco Sales Warehouses

Tobacco Stores – retail

Tobacco Stores – wholesale

Tool Dlrs. – retail

Tool Dlrs. – wholesale

Toy Stores

Undertaking Parlors

United Service Organizations

Vacant Buildings

Variety Stores

Vending Machines

Venetian Blind Mfr.

Veterinary Hospitals

Wallpaper or Paint Stores

Warehouses – cold storage

Warehouses – furniture

Warehouses – general merchandise

Warehouses – private – see individual listings

Warehouses – tobacco sales

Warehouses – tobacco storage

Water Softening Equipment Rental

Water Works

Wholesale Stores -

Wine Distributors – barrels

Women Clothing Stores – 14 years or older

Women Specialty Shops

Wool Merchants

X-Ray Laboratories

Contractor Insurance a Beneficial Necessity

Contractor Insurance a Beneficial Necessity

Contractor insurance is an extremely important protection for many professionals who make their living through contracted building and development work. Along with general contractors, other professionals that rely on the protection offered by contractors insurance include: Builders, developers, trade and artisan contractors who specialize in such processes as carpentry, plumbing, masonry, electrical, concrete, roofing, HVAC and more. Many contractors have been saved from business and financial ruin because of the protection afforded to them from some form of insurance.

The best avenue to find the most advantageous contractors insurance products is insurance specialists who are experts in these types of products. The good news for prospects is that most of the top providers of contractor insurance products are accessible online. Online specialists provide an extremely effective and efficient way to learn about the best insurance products. Agencies that specialize in these contractors insurance products also offer the most cost-effective solutions because of their ability to put together customized solutions that offer the coverage clients need, without the excess costs they do not need.

As one of the largest states in terms of building and new construction development, California is a hot bed of building contractors. This means that with all of the contractors working, there is a huge demand for contractor insurance protection at an affordable cost. The good news for these contractors is that there are opportunities to find honest and dependable specialized insurance carriers that offer protection required in California.

The coverage a contractor needs is dependent on the type of work he or she engages in as well as the risks associated and protection desired. The general purpose of contractor insurance is to provide financial backing for a contractor who is liable to a client who hires the contractor to perform a certain job. The most purchased type of contractors insurance is general liability insurance. As with other types of insurance, contractor general liability offers the widest protection and is most useful to a company or individual engaged any many facets of contract work. There are maximum payouts on the insurance, generally $1 million to $2 million for each type of protection. Contractors protected by a good plan are usually secured against reasonable financial loss due to problems linked to the contractors work. The most complete protection can be found from adding some more specific types of coverage to the general liability protection. The good news for contractors in California is that there are contractors insurance specialists such as us who offer great California contractor general liability insurance plans.

Worker’s compensation is a common contractor insurance purchased by many contracting companies for their employees. Workers comp insurance is a compulsory type of coverage. This protection helps the employer cover the financial burden of an employee who is injured on a job. The workers compensation insurance generally offers income, medical and rehabilitation benefits for injured employees involved in work related accidents. Some plans also include a death benefit payable to survivors.

Inland marine insurance is another specialized type of contractor insurance. This contractors insurance protects goods that are in transit over land. Many contractors move materials and goods routinely and this allows them to expect the high costs of those items. Tools, equipment and installation floaters are all considered inland marine insurance and are considered essential types of insurance for contractor.

Disability insurance is another common type of contractors insurance used by contractors and many companies, for that matter. This provides for the income needs of people displaced from work for a period of time due to injury. It is commonly referred to “Accident and Health Protection”. Health and life insurance are other types of coverage purchased by contractors.

Another common type of protection for contractor is surety bonds. A surety bond is a financial instrument not an insurance policy. A Surety Bond is a financial instrument utilized to guarantee performance. A building developer hires a general contractor and the contractor is unable to perform on his obligation to complete a building on time or as agreed, developer may look to sue contractor for not performing as promised. A performance bond provides protection for this type of exposures. License and permit bonds are required by the cities, municipalities or state. It guarantees compliance with the local, state, or federal codes. Another reason for requiring a license bond is to provide protection to the consumers. Along with contractor workers comp insurance, California contractors are required to have contractor license bonds.

It is quite obvious that companies and individuals that are involved in building development need to protect themselves from huge financial liability. Even small operations need adequate protection as a company need not be large to be a target of a builder looking for retribution. Many companies hire top contracting talent by promoting the excellent liability and contractor protection they maintain. Contracting work is often challenging and sometimes dangerous. It is important for workers to know they will be taken care if injured in the line of duty.

Contractors that either want more complete protection are want protection more customized to their limited needs might opt for other types of contractors insurance.

Contractors Liability Insurance

Contractors Liability Insurance

A combination of skills, licenses and adequate business insurance gives your company an edge among your competitors and makes you more credible and reliable to prospective clients.

Additionally, as a contractor, your company is exposed to potential damages and lawsuits that may send you out of business if you lack a stable financial safety net. Contractor liability insurance provides protection against adverse economic effects of unforeseen circumstances that could slow your business down.  Some of the risks covered include damages to physical assets, work-related and third-party injury claims like medical expenses as well as funeral cost.

Types of Contractors Liability Insurance

Many contractor liability insurance products are sold standalone, depending on the insurer. You may get any of the following from most insurers in the business insurance market:

Contractors General Liability Insurance

General liability coverage covers your company against third-party claims as a result of bodily injury or damage to someone’s property caused by your company. The policy doesn’t protect your own property.

Contractors Workers’ Compensation

Every state has a law that requires a business owner to partly or wholly provide the medical bills of employee’s work-related accidents and illnesses. This is the essence of workers compensation. The product also covers your employees’ lost wages, rehabilitation cost, and death benefit to the families of workers who die on the job. Most workers compensation insurance policies also offer employers liability insurance.

Contractors Commercial Auto Insurance

Commercial auto insurance covers any damage done to or caused by vehicles used for business. The policy has four types of products, which are:

-          Auto liability: This covers bodily injury or property damage caused by your vehicle

-          Uninsured motorist coverage: This covers damage to your vehicle caused by an uninsured vehicle, i.e. if the person who hits your vehicle isn’t insured

-           Medical damage coverage: This product covers medical bills if you or any passenger in the vehicle is injured. It doesn’t matter if the fault was from you or someone else.

-          Physical damage coverage: This provides coverage if your vehicle is damaged by something other than an accident.

Contractors Professional Liability Insurance

It is also known as professional indemnity insurance. If any of your clients suffers financial loss as a result of your company’s negligence or errors, you will be covered by this product. Professional liability is very important for businesses operating as service providers. Commercial General Liability policies excludes coverage for contractors professional liability coverage.

Contractor’s Equipment Insurance

The policy covers the operational tools and machinery owned or rented by your business, so long it is in your possession. The covered equipment will be protected against perils, such as vandalism, theft, flood and fire. The coverage isn’t tied to a specific location, as it also covers mobile machinery, such as forklifts, trailers and inland marine. Contractor’s equipment insurance is inevitable for construction contractors.

What to Consider When Buying Contractors Liability Insurance

Every business has its own uniqueness, and as such will require a customized coverage. Your contractor insurance should be in line with the common events in your line of work. Additionally, priority for a product should be considered based on the level of risk. For instance, there will be a major difference in workers’ compensation policy needs between your office employees and field employees, because the odds for work-related injuries for the latter are higher. Above all, speaking to an experienced insurance broker will help you make the right decision. We at Safepro Insurance Services are ready to assist you.