How can contractor insurance protect you?
Use the yellow hot spots and explore how contractor insurance can help protect against common risks.
Commercial General Liability Coverage
As a contractor, your business may be susceptible to many risks, such as claims due to bodily injury, property damage, personal injury, and more. And, if you hire other contractors to perform work on your behalf, you can be held responsible for any damage they cause on the job.
Commercial general liability insurance is an absolute necessity for every contractor. This type of protection provides broad coverage for premises, operations, products, and claims to third parties or property when you are deemed responsible and liable. It will also pay to defend any covered lawsuit or action regardless of its merit.
Commercial Property Coverage
When a fire, theft, or another type of disaster strikes, your commercial property and everything within it can suffer a significant loss. This can have a detrimental effect on your business.
Commercial property insurance can help protect the property your business owns and leases, including things like equipment, inventory, furniture, and fixtures. Whether you own your building or lease your workspace, commercial property insurance can be purchased separately or can be combined with other necessary coverage to protect your business’ physical assets.
Contractors' Equipment Coverage
You’re constantly moving your tools from one job site to another, exposing your contractor business to potential loss due to damage or theft. And without your specialized tools and equipment, your job site may come to a screeching halt.
As a contractor, you need contractors' equipment insurance - a policy specially designed to protect your tools and equipment on the move. The policy will cover equipment for a variety of losses, including fire, explosion, vandalism, theft, collision with other equipment or objects and overturning. Unlike standard commercial property insurance policies, contractors' equipment insurance often covers losses caused by floods and earthquakes.
Builders Risk and Installation Insurance
A building under construction is not covered under a standard building insurance policy or a home insurance policy since it is not a complete structure. As a contractor, you may be responsible for unique loss exposures related to buildings under construction such as the theft of building materials and high valued equipment such as generators and compressors.
Builders risk and installation insurance provides coverage for homes or buildings while undergoing construction, until they are completed. The policy covers the contractors’ interest in materials at the job site before they are installed, construction materials in transit designated for the contractors' equipment insurance–a policy specially and the value of the property being constructed until it is completed.
Workers’ Compensation and Employers Liability Coverage
If one of your employees receives an injury or becomes ill due to a work-related occurrence, you are required by law to have the proper coverage in place.
Workers’ compensation and employers liability insurance protects your employees should a job-related injury or sickness occur during the course of employment. Since benefits vary by state law, make sure your insurance agent is aware of all physical locations your business operates in and all physical locations where you hire your employees.
Business Auto Insurance
As a contractor, you have many exposures associated with your business vehicles–owned or leased. With a fleet of cars, trucks, vans, or other types of vehicles used in the course of business, a single accident can potentially put your contractor business in financial jeopardy.
Business auto insurance provides coverage for vehicles owned or leased by a contractor and provides coverage for bodily injury, property damage, and other exposures, and could include comprehensive and collision coverage as well.
Hold Harmless / Additional Insureds
If you are performing as a contractor on a construction project where other contractors and vendors are involved, you could be held liable for any damages or injuries caused by the other contractors or vendors, leaving you with costly legal fees and settlement costs. Your business needs to be protected against the risk of some other company, vendor or subcontractor causing damage to people or property of your mutual customer.
Consider having a contract in place with each entity that includes a hold harmless agreement in your favor. A hold harmless agreement provides that the entity will hold you harmless for any injuries or damage caused by their negligence. In addition, the contract should require that the entity list you as an additional insured on their policy. This may provide you with coverage under their policy for injuries or damage they cause if you are named in a lawsuit.
Commercial Umbrella / Excess Insurance
Losses and lawsuits are quite common in the construction business, and settlements can be substantial. If your business is found to be responsible for damage or injury on the job site, you could be facing a large liability loss that exceeds the basic limits of your standard policy.
You should consider purchasing a commercial umbrella insurance policy which provides higher limits, typically between $2,000,000 and $10,000,000, and often broadened coverages. Coverage is extended over your general liability insurance, workers’ compensation, business auto, and directors and officers liability insurance. It provides a great safety net and helps ensure your contractor business is well protected.
Who Needs Contractor Insurance?
Accidents and other mishaps happen. When they do, contractors, subcontractors, and independent tradesmen should ensure they have appropriate insurance coverage. Having insurance protects hardworking business owners from liabilities that can threaten your business. Our team of licensed agents can provide better value for your contractor insurance policy. We have several workers’ compensation and construction insurance specialists(Certified Builders Insurance Agents) in-house, which is why you can always expect a higher level of service from us. Our team can write policies for contractor businesses in all of North Carolina, South Carolina, and Virginia.
What Can Contractor Insurance Cover?
A good policy includes general liability coverage that protects you against claims of damage or injury caused on the job site or to visitors on your own premises. Such costs can be immense, and general liability insurance is often mandatory if you want to bid for government contracts. It can also protect your materials, machinery, and equipment against damage or loss from fire, theft, flooding, and other risks, whether it happens on-site or off-site. Just as importantly, you need to have insurance coverage against loss of income if you can’t work because your equipment is damaged.
How Much Does Contractor Insurance Cost?
One of the biggest determining factors in calculating your insurance premium will be your industry, which typically dictates the risks involved. For instance, an electrician, a landscaper, and an HVAC professional will all face different risks that are unique to their respective industries. Your contractor insurance quote will have to be customized according to your business’s considerations.
Basic coverage should include general liability, which is typically required before work can begin. In addition, commercial auto coverage can protect you and any of the vehicles your company uses to transport workers or materials.
What Do I Need to Get a Quote for Contractor’s Insurance?
Guesswork should never be involved when it comes to protecting your business. If you need contractor insurance, contact the All Insurance Services team to get a free contractor insurance quote. We’ll take the time to get to know your business so that we can find the best rates for your policy.