As a contractor, you must do more than buying a singular insurance policy. There’s quite a bit of coverage you can purchase, and you must know what you’re looking for, how much coverage your specific business requires, and how much you should spend. Use these tips to learn more about insuring your contracting business so that you can cover all your bases.
Industry leaders recommend that you carry quite a lot of coverage, but this list is only the beginning. Reach out to our team if you need coverage that is further tailored to your needs.
1. Commercial General Liability
As a contractor or subcontractor, you must carry liability insurance that rises to the level of the commercial work you do. Liability insurance protects against injury, illness, damage, and other losses that could occur as you work. These policies are often known as “business liability” plans, depending on who you talk to.
2. Workers’ Compensation
Workers’ compensation is essential to the success of a business, and is required by law. Think of workers’ comp this way—when you purchase the policy, all work-related illnesses or injuries are now the responsibility of the insurance carrier. The carrier replaces an injured employee’s income, pays their medical expenses, and determines how long coverage should go on. Death benefits are also included.
As a business owner, all you need to do Is report injuries in a timely manner and ensure that your staff does the same.
3. Contractor’s Pollution Insurance
Pollution insurance is a unique policy that protects a contractor against claims that they have somehow polluted the environment. These claims could come from the client, municipality, or even a government agency. Even if you feel your business doesn’t produce pollutants on a daily basis, you still need this policy just in case.
4. Commercial Auto Coverage
Commercial auto coverage goes above and beyond what personal auto insurance can do. Remember, commercial auto coverage is required even if you drive your personal vehicle to work. You should also recommend this level of coverage to employees who use their personal vehicles for work. Without it, claims could be denied and the carrier might even cancel your personal auto policy after you file a claim that clearly involves work-related damage.
5. Builders’ Risk
Builders’ risk insurance is an important part of any large job. You have tools, materials, and supplies at the worksite that could be damaged, lost, stolen, or destroyed at any time prior to installation. A builders’ risk policy protects these items and offers you the opportunity to assess their value and insure everything for appropriately so that you can afford replacements when filing a claim.
6. Insurance Specific to Your Work
Generally, you may want to purchase insurance specific to your business: While this list isn’t exhaustive, these tradesmen may require specialty insurance coverage:
- HVAC contractors
- Appliance technicians
Contact Caparo Insurance for Assistance With Contractor’s Insurance
Reach out to our team at Caparo Insurance for more information on insurance for contractors. You can properly safeguard your business, ensure that your team has the backing they need, and protect your largest investment, your life’s work, at any affordable price.