Contractors insurance is a bundle of business insurance policies aimed at protecting your contracting business from loss resulting from accidents and liability.
It doesn’t matter if you don’t have any employees or if you have a large operation. If your clients require liability insurance, you are a subcontractor, if you plan to hire employees (or have them already), you have valuable equipment or materials, or you have business vehicles, you will benefit from a policy.
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 company vehicles whether you or your employees are driving them.
Commercial general liability insurance — protects your business from being sued for injuring another party or damage to someone else’s property.
Property insurance — covers damage or complete loss of your property and assets.
Workers compensation — liability insurance that pays for medical expenses and lost wages if one of your employees is injured or becomes sick while working.
Builders risk insurance — covers value of labor and materials of a partially completed work.
Contractors errors and omissions insurance — liability insurance that covers the cost of repairing or replacing work done by your business that is unintentionally defective.
Professional liability insurance — liability protection for negligence, malpractice, or misrepresentation.
Umbrella insurance — provides extra liability insurance in case of larger 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?
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.
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