Contractors face unique and potentially hazardous risks on a daily basis.
With insurance policies such as general liability, workers’ compensation, builder’s risk insurance, commercial auto policies, umbrella policies and surety and fidelity bonds – contractors can protect themselves against financial losses that might otherwise threaten their businesses.
Ask your broker how accommodating they are when it comes to meeting the insurance needs of large general contractors and projects. An experienced broker can help reduce risks related to not complying with contract requirements and losing work.
What Is Contractor Insurance?
As a contractor, you provide your clients with expertise and cost-efficiency, yet your work involves risks that could cause financial loss. That is why it is critical for contractors to secure themselves against claims, lawsuits and damages by purchasing contractor insurance policies.
Contractor insurance comes in many forms, covering different risks. Policies available include general liability, professional liability and workers’ compensation policies; depending on your individual needs you may want to add commercial umbrella insurance as an extra layer of coverage.
Contractors with limited assets should invest in general liability insurance to protect their operations from third-party bodily injury or property damage caused by your operations, products or services.
Furthermore, general liability coverage provides compensation if an accusation of failing to fulfill contractual obligations is filed.
Those that employ more substantial operations with complex equipment may need a Products & Completed Operations policy for added protection from claims arising from completed projects, including property damage or injuries due to subpar workmanship.
Furthermore, legal fees could also be covered if customers sue you over copyright infringement or any wrongful conduct related to advertising practices. You can click here to learn more about copyright infringement law and how it pertains to your company.
Finally, workers’ compensation coverage provides financial coverage in the event an employee becomes injured on the job and medical expenses or lost wages are incurred as a result.
General Liability Insurance
General liability coverage should form the cornerstone of any contractor’s business insurance package, protecting against claims of property damage or bodily injury caused by your operations. You can visit this site: www.contractorbond.org/california-contractors-general-liability-insurance/ to learn more. Its cost can depend on many factors, including company size and revenues as well as work performed, location of operations and claim histories.
Your contractor’s business can benefit from more than just general liability coverage: commercial auto (for vehicles owned by the business), builder’s risk (to provide protection when building), professional liability and errors and omissions insurance can all provide valuable support. In addition, tools and equipment coverage or inland marine may provide necessary protection.
Contracting businesses often need proof of general liability before entering a relationship.
Workers’ Compensation Insurance
A solid contractor insurance package should include essential coverage types.
Contractors all risks (CAR) insurance provides protection for damage caused to company vehicles and equipment at work sites. Commercial auto coverage will provide protection for accidents involving company-owned or leased vehicles as well as theft, vandalism and weather damage claims. You can use online tools to help you find relevant crime rates in your area.
Contractor’s tools and equipment coverage offers replacement costs should equipment be lost, stolen or damaged on the job; in addition, it would be wise for them to investigate inland marine coverage that covers trailers and trucks that move frequently between jobsites.
This type of business should always consider commercial umbrella insurance, which provides extra coverage beyond general, workers’ comp, and auto liability policies.
Auto Liability Insurance
Your business likely owns vehicles. Auto liability insurance provides compensation if any damage caused by them to others’ properties, as well as protecting both you and your employees in case of a bodily accident.
Coverage typically includes bodily injury and property damage liability, medical payments, uninsured and underinsured motorist coverage and collision coverage; some policies even provide hired/nonowned coverages which protect vehicles that your business rents or borrows.
A general contractor should consider adding professional liability protection as an extra safeguard against allegations of negligence, miscalculation and missed deadlines.
An independent insurance agent can help you assess and find cost-effective coverages to give you peace of mind as you manage your construction business.
They’ll consider factors such as size, employee counts and the types and numbers of projects on which they work to estimate costs and recommend policy limits; other influences include prior claims history as well as amount of liability protection chosen – higher limits often increase premiums so an umbrella policy might provide added coverage in this respect.
Commercial Auto Insurance
If your business involves regular driving between job sites, or has multiple vehicles to cover, commercial auto insurance should be carefully considered. This specific form of auto coverage provides coverage for business cars and drivers, including liability (for damage done to other people due to an accident) as well as property damage coverage (to repair or replace vehicles after an incident).
Your commercial policy could also include bodily injury coverage – covering medical costs in case of an accident and collision coverage for damages to your business vehicle when hit by another car – as well as hired/non-owned auto insurance, providing protection to employees driving their own cars as part of their work, as well as lease gap coverage – covering any difference between what your loan balance owed is and its current worth after an incident occurs.
Commercial auto policies usually feature higher coverage limits than personal policies, as well as options like business interruption coverage to help your company recover after an accident. If you’re interested in protecting the vehicles that run your business, speak to an insurance professional today about getting a quote for commercial auto coverage and get it in place ASAP!
Insurance is an essential part of any business; in a business like contracting, it is even more important. There are many different types of unforeseen circumstances that can impact a contracting firm. Insurance can help to mitigate those risks. Many states have legal coverage minimums that must be met to ensure legality.