ECN Forum Forums General Topics of the Trade Business Related Discussion Another insurance question

I haven't yet read all of the fine print in my policy but I'm wondering about something. I heard that many policies (contractors) only cover damages, etc, that occur while the job is being performed. Does this mean that if I have a DBA and god-forbid something happens to a home 2 months after I was there and I'm blamed for it, that I could be sued and my insurance would not cover it. I haven't seen any exclusions written like that in the policy but I guess I'll be reading the fine print soon. Any thoughts on this subject?

Ask your agent, but I'd assume that the liability part of the policy would cover any suit regardless of when the installation was completed.

Dave

Most policies have a "sunset clause" which sets a time like 4 years that the sun sets on the coverage in the policy. After that you are on your own. Insurance is limited coverage-- you also need to put $ in a 401K or an IRA or anuity to protect it from a lawsuit. Other contractors I know have big assets in their wife's name. It is easy to lose all your assets if you do not take action now. Incorporation might also work, but a suit can sue the corporation and you too!

Wow, I'm glad I asked this question. Haven't had a chance to call broker yet. My policy costs me $500 a year for 300,000 and 600,000 aggregate. Is this common for contractors or business owners to put their own money in 401k's or the like? I've heard about this. I have some money and certainly don't want to risk losing it.

I know what you're saying. There is really a lot to know and unless you have a relative or someones who's done it succesfully, it takes a long time to find out everything you need to know. That being said, hopefully when you find out everything you do need to know, it won't be too late. Thanks for the advice.