When you’re in the contracting business, understand that it carries some underlying risks that may not be apparent at first. Working on a project presents many possibilities for your workers and other people to get injured. Property may suffer damage. Whether it is property damage or physical injury, the contractor is going to be liable. You do not have to pay a claim out of your pocket, as long as you have the right insurance coverage. Lets find out the types of insurance a contractor needs.
Why risk losing money or closing your business? With the right insurance coverage, you, your business, and your employees will be secure.
Types of contractor insurance
It is essential to know the insurance you need as a contractor. Contractor insurance will protect you should mishaps occur at work. Even if you have strict safety regulations, there are things that are beyond control. These eventualities are what you want to prepare for, which is why you need insurance. If you are looking for contractor insurance right now, you might be interested in the offer to purchase your insurance coverage in minutes, which can provide you with the right insurance solutions for your contracting business without too much hassle.
As a business owner, employer, and contractor, here is a list of the essential insurance you need.
- Commercial general liability insurance. This is the type of insurance most contractors should get. The commercial general liability insurance provides coverage against third-party claims for property damage or physical injury that occurred while working on a project. It will pay the compensation amount, and can also pay for the legal expenses you will incur if there is litigation.
- Builders risk insurance. This is another essential insurance that builders and contractors need. It covers losses incurred for damaged or stolen equipment and materials. It will likewise benefit equipment owners and subcontractors involved in a construction project. Insurance companies usually provide this together with general liability insurance for contractors.
- Workers’ compensation. All businesses that hire workers need to have workers’ insurance. It covers your employees against accidents while on the job. Workers’ compensation pays for medical treatments, rehabilitation costs, disability income, and compensation to families in case of work-related deaths. It is your protection from suits that injured employees or the families of a deceased employee may file against you.
- Contractors pollution insurance. Contractors must follow the environmental laws in place. There will always be some type of pollution at a construction site, and third parties might sue you for violating the law. Protect your business from such claims so as not to hamper the progress of your project.
- Automobile liability insurance. You have vehicles for transporting workers, equipment, and materials to a construction site. You need automobile liability insurance to protect you against bodily injury, property damage, or loss of life at the project site. The owner of the vehicle is liable to indemnify third parties who file a claim. Automobile liability insurance will protect you from third-party claims for loss, damage, or injury. It also covers all the legal expenses you will incur should there be litigation.
- Roofers insurance. The insurance is specific to roofing contractors against workplace accidents that could lead to property damage or physical injury.
There are other contractor insurance available, but these are the essential ones to consider if you want to protect your business and yourself.