Contractors are responsible for a wide range of tasks that put them at risk for property damage, injury and other liability issues. This is why contractors insurance is so important. Our experienced agents can help you customize a contractors business insurance package that fits your specific needs and budget. The costs of your contractors-insurance will depend on several factors, such as the types and amounts of coverage you select, your business operations and your prior claims history. We will be happy to provide a detailed breakdown of the cost of your contractors insurance so that you can make an informed decision.
What Is Contractor Insurance?
Insurance for contractors is often required by clients and customers as a condition of working with them. While some smaller jobs only require a commercial general liability policy, larger projects may have more stringent requirements that include workers’ compensation, professional liability, and environmental and pollution coverage.
A standard contractors insurance policy typically includes several key coverages:
General Liability Insurance: This is essential for all businesses, but especially for those who work on job sites where property damage is a possibility. It pays for damages awarded against your company as a result of negligent property damage, advertising injury and bodily injury, including indemnity and defense costs. It also covers damages awarded as a result of your company being convicted of a criminal act, such as fraud or embezzlement.
Worker’s Compensation Insurance: This is a legal requirement for any business that has employees. It pays for the medical bills and a portion of lost wages for employees who are injured on the job.
Commercial Auto Insurance: This is a must for any contractor who uses vehicles to get to and from job sites. It provides coverage for vehicles owned by your company as well as those you rent or borrow. It also covers you if your employees are driving their own personal vehicles for business purposes.
Additional Insured Coverage: Many contractors are asked by clients and customers to be named as an additional insured on their policies. This is a great way to build trust, but it can also increase your premiums. It’s a good idea to limit the number of uninsured subcontractors you use as insurance companies tend to view them as high-risk operations.
Other coverages you may wish to consider include business interruption insurance, which pays for losses incurred if your company is forced to close due to a covered event like a fire or theft; and commercial umbrella insurance, which increases the limits of your other policies. We can provide a complete breakdown of all the available coverages and help you choose those that best meet your needs and your budget. Contact us today for a quote on your contractors insurance. We can even create a certificate of insurance to share electronically with your clients or customers as soon as you purchase your policy. This saves you time and allows you to start working with them sooner.
