Few professions have so great an exposure to negligence claims as do contractors. You are responsible for any occurrence that puts a person or his property in jeopardy. You are in violation of the civil law if damage can be shown to result from your negligence of the negligence of your employees. The law requires that you act with due care and consideration. Your basic liability policy insures you against claims resulting from your business operation. It covers maintenance and use of your business premises as well as any elevators listed on your policy. Automatic coverage is provided for any extension of your business, such as newly acquired land. Your basic policy will cover only those contracts for which no additional premium is required. Easement agreements not involving construction work or adjacent to a railroad, and sidetrack agreements, will be two additions to the basic contractual liability coverage. The new policy will more clearly define completed operations by distinguishing between it and products liability. Liability premiums are determined by multiplying the applicable rate by the total payroll involved. Each job classification is subject to a different rate. Premiums in excess of a given dollar amount entitle you to a premium discount. Experience modifications in the from of debits or credits are applied to your basic premium. The modifications are determined by the amount of money it has cost your company to settle previous claims.