Contractors insurance is a collection of business insurance plans designed to safeguard your contracting company against losses caused by accidents and liabilities.
It makes no difference if you have no employees or a vast operation. You will benefit from a policy if your clients demand liability insurance, you are a subcontractor, you plan to hire staff (or already do), you have valuable equipment or materials, or you have business cars.
Contractors insurance is a flexible cover for a wide range of contract businesses, from construction workers to painters and decorators.
Contractors Insurance Coverages
As a contractor, there are several different coverages that can be bundled to properly protect you from risk:
Commercial auto insurance — Covers your organization cars whether or not you or your personnel are riding them.
Commercial general liability insurance — Protects your enterprise from being sued for injuring some other celebration or harm to a person else’s property.
Property insurance — Covers harm or the whole lack of your private home and assets.
Workers compensation — Legal responsibility coverage that can pay for scientific charges and misplaced wages if one in every one of your personnel is injured or will become unwell at the same time as working.
Builders risk insurance — Covers the cost of hard work and substances of partially finished paintings.
Contractors errors and omissions insurance — Legal responsibility coverage that covers the value of repairing or changing paintings achieved through your enterprise is accidentally defective.
Professional liability insurance — Legal responsibility safety for negligence, malpractice, or misrepresentation.
Umbrella insurance — Presents more legal responsibility coverage in case of large lawsuit claims.
This Policy Would Be Useful For:
- Carpentry contractors
- Concrete contractors
- Drywall contractors
- Electrical contractors
- Excavating contractors
- Landscape contractors
- Mechanical contractors
- Masonry contractors
- Plumbing contractors
- Siding contractors
- Tile contractors
Do I need contractors insurance?
Being a contractor entails financial risk, as well as specific responsibilities and legal liabilities. Clients may file a claim against you if you make a mistake that costs them money. While it is uncommon, claims against contractors can occur, and they can be quite costly. More significantly, before accepting your contract, the vast majority of clients legally need that you are covered.
You need contractors insurance if your business meets even one of these criteria:
- Has employees
- Clients require liability insurance
- Has vehicles
- Serves as a subcontractor to a general contractor
- Has assets that need protecting
Still unsure? You’re welcome to contact us to see if it’s a necessity.
However, if you have employees it is required by law that you, at the very least, have workers compensation. Commercial auto insurance is also required if you have company vehicles or use personal vehicles for company use.
But it’s a given that accidents happen other than employees’ injuries. Without coverage, your business’ future could be at stake. And small business owners could have their personal assets at stake, too.
An agent can help you decide how much coverage you will need but it will depend on minimum requirements your clients or landlords require, your business’ revenue, how many employees you have, your line of work, and any assets you have.
Contact us for a consultation regarding your insurance needs.