As a contractor, each job you win brings in extra money but it also brings extra risk. An accident could cause injuries or damage to property leading to a financial loss that can potentially overwhelm your business with financial liabilities.
And the same contractor insurance you used to protect you for a one-man project may not protect you during a multi-year commercial deal.
Why Contractors Need Contractor Insurance
As a contractor, customers expect you to:
- Put their construction plans into action
- Meet deadlines
- Make sure that large and small projects are completed
All these different tasks can expose your business to unique risks. Moreover, your business will also be exposed to common workplace risks. These potential risks may include damage to your property or important documents.
What Is Contractor Liability Insurance?
When you purchase contractor liability insurance, this can help protect your business when something unexpected occurs. This can also serve as protection for your assets and employees. You’ll have peace of mind when your business faces a lawsuit or covered loss when you have this kind of insurance. It’s important to understand the best kinds of insurance coverage for contractors like you. The right coverage will do everything to protect your business and your employees.
Protection for every budget or job
Protection for every budget or job
Because every business is different, commercial insurance solutions for contractors can range from a basic policy to a thorough mix of coverages that vary from job to job.
Also, the type of contracting business you own, size, number of employees, and type of work all have an impact on the types of protection you may need.
We understand the fact that you need to stay focused on the work, not the risks you face every day. So we work with the best carriers of commercial insurance solutions that can help you meet the needs of your business, and put your mind at ease.
Who Needs Construction Insurance?
Any person or business working in construction trades: building construction, heavy construction, or home improvement. We offer coverage for every trade, including:
- Contractors Insurance
- Carpenter Insurance
- Plumber Insurance
- Handyman Insurance
- Electrician Insurance
- Masonry Insurance
- Security Company Insurance
- Home Builder Insurance
- Developer Insurance
- Renovation Insurance
- Welding Insurance
- Artisan Insurance
- And more…
Insurance keeps working, even after the job is done
Even when the job is finished, there is plenty more work to be done. You may have connected the final fixtures, flipped the switch, and handed over the keys, but the potential liability from your work goes on.
Our insurance keeps protecting you from any accidents or faults that may allegedly result from work you’ve overseen or performed. In the trades, you need a solid contractor insurance policy that keeps working to protect you long after you have moved to the next job site.
What does Contractors Insurance cover?
The list of coverage areas that need to be addressed in your contractor insurance include:
- Property in transit covering equipment, and losses to goods stored (on or off your premises), or being transported to or from your premises.
- Workers Compensation can replace lost wages, pay medical treatment, as well as protecting your business assets should an employee suffer injury
- Trucks and other commercial vehicles to pay for any claims resulting from an employee’s accident while driving a company vehicle, or their own vehicle while on company time.
- Errors and omissions covering any claims for negligence or other mistakes resulting in a loss to the customer during business activities
- And many more …
If your contractors’ insurance misses any one aspect of this protection, your job and your company could be at serious risk.
Business Owner’s Policy for Contractors
Most contracting businesses own a Business Owner’s Policy or BOP. This helps safeguard them in the same way a homeowner’s policy helps protect your home and personal belongings.
A Business Owner’s Policy can help save you money while protecting what you have worked hard to build. There are three coverages. These are:
- General Liability Insurance- this will help protect your contracting business against lawsuits leading to injuries or property damage. One example is when a customer is injured at your workplace. General liability insurance can help cover the expenses for bodily injury claims. Furthermore, this insurance coverage will also help cover claims of slander and libel. However, business liability insurance will not cover liabilities resulting from the professional services you offer. You would need professional liability insurance for claims of errors or omissions in the services you provide.
- Commercial Property Insurance- this will help safeguard the place where you do your business and the things you use to hold business. This can include your tools and equipment. It also doesn’t matter if they’re owned or just leased.
- Business Income Insurance- this will help cover for the loss of income when you can’t supervise your business due to covered property damage.
Some Optional Contractor Insurance Coverages to your Business Owner’s Insurance Policy
Business Income Extension for Off-Premises Operations
Business income insurance extension for off-premises operations may help you replace your lost income if you need to stop your operations. For example, business owners like you may suspend their operation if your property or equipment gets damaged while on the job. One instance is when an essential tool gets damaged or destroyed at a job site.
Your tools and equipment you use as a contractor are, of course, essential to your business. Your business may be interrupted if it gets lost, damaged, destroyed, or even stolen.
For example, your company is using a bulldozer at a job site. While using this bulldozer, one of your employees accidentally collides with a tree. Inland marine coverage can help cover the expenses to repair this damage.
One scenario that you could imagine is when your contracting business is remodeling a bathroom and your client opted for an expensive tub. Then, one of your employees drops the tub while carrying it to the second floor. This then results in a large crack at the center of the tub. This installation coverage can help cover the expenses associated with the claim against you when this happens.
Data Breach Coverage
General contractors and contracting businesses usually store sensitive and private information about their employees and clients. This information includes:
- Social Security numbers
- Debit or credit card numbers
- Other personally identifiable information
Your business may face lawsuits if this sensitive information gets lost or stolen. It can also lead your business to a damaged reputation. Data Breach Coverage can help pay the expenses of the following:
- Notifying affected individuals
- Managing public relations
- Good faith advertising
Employment Practices Liability Insurance
Contracting businesses are at risk of employment practices liability claims. Current and former employees may sue against your contracting business. They may do so for issues such as the following:
- Wrongful termination
One example is when you end up facing expensive legal fees when a former employee stated that your business wrongfully terminated him. The former employee claimed he got terminated although a medical accommodation may have been made for the personal injury he got from working at your business. Employee practices liability insurance can help cover legal expenses associated in case such an instance occurred.
What about the cost?
The fact is, you can’t afford not to have coverage. Understandably, price is always a concern for contractors. But with a custom contractors insurance policy from us, you are in control of what types and amounts of coverage you want to pay for, and when. So it can be surprisingly affordable.
Talking to a local resource you can trust is the first priority.
Why We’re Different
You may think you want the cheapest insurance you can find, but realize you may not be getting everything you bargained for…
While most insurance products are similar in price and function, insurance providers are very different when it comes to structuring a policy that actually covers you.
There’s no such thing as a one-size-fits-all insurance policy when it comes to your business.
We’re your neighbors. We protect businesses and people we know and care about, and that means we always look for ways to protect you better, including carefully choosing the insurance companies we represent to be both affordable and responsive.
Contact us and let the professionals at our company help you forge the strongest shield possible to help you protect the things you are working hard to build.
The graphic below is interactive.
Explore and learn more about some unique risks as well as the related insurance solutions.
Commercial Auto Insurance
Possible Liability: Accidents causing vehicles owned or leased by the company can include a fleet of trucks, cement mixers, etc, to become unusable.
Solution: Business Auto policy for leased or owned vehicles that can also include comprehensive and collision coverage.
Workers Comp and Employment Practices Liability
Possible Liability: Each occurrence of any employee having work-related injuries or illnesses. Some employees might also sue for probable violation of employment practices.
Solution: Workers Compensation coverage is required by most, if not all, US states. While EPL is not mandatory it would be a good idea to have both. Ask your insurance agent for any suggestions or clarifications for this coverage.
Hold Harmless and Additional Insured
Possible Liability: If working with other contractors or vendors, you can be responsible for any damage or injuries they cause during construction.
Solution: A contract with all parties involved that has Hold Harmless and Additional Insured clauses can benefit you in case lawsuits may arise.
Commercial Umbrella/ Excess Insurance
Possible Liability: If your company is found liable for damage or bodily harm, there is a risk for lawsuits and settlements.
Solution: Consider adding a commercial umbrella policy that can provide extended limits from $2,000,000 and $10,000,000 over general liability workers comp, commercial auto and directors and officers liability insurance.
Commercial General Liability
Possible Liability: Claims due to accidents for property damage, bodily harm, personal injury, and any damages done by a 3rd-party contractor you hired for work done on your behalf.
Solution: This protection should be included for a wide array of coverage for products, premises, operations, property, and any 3rd-party liabilities.
Possible Liability: Financial loss or business interruption due to contractor equipment damage from constant use or theft.
Solution: Add contractors’ equipment coverage for coverage due to losses that can include a variety of incidents that can cause equipment to be out of service.
Builder Risk Insurance and Installation Floater
Possible Liability: Buildings under construction (still an incomplete structure) aren’t covered under a normal building or home insurance policy, and any loss, theft, or damage during construction or installation is the responsibility of the contractor.
Solution: Builders Risk and Installation are policies that can be taken separately or purchased together depending on what the project is. It would be best to speak with your agent to determine which works best for you.
Commercial Property Insurance
Possible Liability: Coverage for your business premises in case of fire, theft, or any other type of disaster.
Solution: This coverage for owned or leased business offices can be taken as separate property insurance or combined to protect company equipment, furniture, and other items necessary for your business to function.
DISCLAIMER: Consult actual policy for exact terms and conditions or talk to your insurance agent for clarifications.
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