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A Brief Guide to Contractor Insurance

By March 27, 2019 No Comments

If something can go wrong, it will. Murphy’s Law could easily be the insurer’s law. As a contractor, you understand risk. When the unexpected does inevitably happen, you’re the one who is most likely to be held accountable. That means, contractor’s insurance is a must-have.

Obtaining the right policy for your business can protect you against situations that would otherwise be a complete disaster. So, we’ve assembled this brief guide to contractors insurance to help you understand and pick the right type of coverage.

General Liability Insurance for Contractors

Every professional contractor should have general liability coverage. This protects you in the event of an injury or property damage. It also kicks in if a customer decides to sue. Needless to say, if you don’t have it, these kinds of events can ruin your business. A range of trade types will also be covered automatically.

Business Owner’s Policies

If, as a business owner, you need coverage both for yourself and for your employees- then a business owner’s policy might be the right choice. Coverage of this type provides general liability insurance as well as protecting your equipment. Write out your specific coverage needs when signing up so that your provider can help you choose the right policy.

Builder’s Risk Insurance

This is a type of property insurance that covers damage or loss of materials, tools, or property. It does not cover injuries, as it is specific to physical items and structures. It is a short term type of insurance intended for use on a specific job site or project. Some local building codes require contractors to have it, and others don’t. So make sure to check your local regulations.

Insurance for Contractor Vehicles

Your vehicles represent a massive investment in your business. Commercial Auto Insurance for contractor vehicles protects that investment. Not every insurance provider offers insurance specific to contractor vehicles, but there are many that do. So some shopping around to find the right package for you might be in order.

Insurance for Completed Operations

Once the job is done, there are still things that may go wrong. Structures may fail, electrical work may prove faulty, and any number of things may turn out to require extra attention. Any malfunction related to your work may be your responsibility. Completed operations insurance helps protect you if an accident results from a malfunction.

Trade Specific Coverage

There are insurance types that cater to specific specialties such as;

  • Carpentry
  • Cleaning
  • Electrical
  • Plumbing
  • Landscaping
  • Roofing
  • Painting
  • Snow Plow
  • And more …

Having the right trade-specific insurance protects you from trade-specific risks.

Guide to Contractor Insurance: Conclusion

Contractor’s insurance is a must-have. We hope you found our guide to contractor insurance helpful. Make sure to research your local codes to find what types of coverage best suit your business. Be sure to check whether subcontractors are covered. You, those who work with you, and your customers will all enjoy greater peace of mind knowing they are protected. Get in touch with Brashears Insurance to learn more.