Insurance Overview for Contractors
As a contractor, your business needs insurance. However, insurance needs go beyond just General Liability so this overview will go over the general types of insurance coverages that your business might need and what they will cover.
General Liability coverage is for your liability arising out of your operations as a contractor, covering damages caused by your work to a 3rd party. Contractors want to make sure that they have a policy designed for Contractors that provides coverage not only for ongoing work but for completed work as well, known as Products and Completed Operations Insurance.
If you have employees, you are required to provide insurance for them. Workers Compensation provides coverage for work-related injuries. If you hire sub-contractors, always have them provide you with a Certificate of Insurance showing that they have both Liability and Workers Compensation, to ensure that you are not picking up their sub-contracted costs as payroll on your Workers Compensation audit.
If you own vehicles used in the course of your business, you need to have a commercial auto policy. Liability limits of at least $1,000,000 are usually recommended as well as comp and collision. If you have employees who use their vehicles, adding Hired and Non-Owned auto coverage is also recommended.
Inland Marine / Contractor’s Equipment and Property
From small tools to heavier equipment, your Inland Marine policy will give you coverage for your equipment while on job sites. Theft coverage is especially important. Most of the equipment is scheduled on these policies, but miscellaneous tools will also have a set limit, to ensure the smaller equipment that does not have serial numbers is also covered.
If you own a building or have a storage yard, you will also want to have a property policy in place. If you are a tenant in a leased building, property insurance can provide coverage for office equipment, fixtures, and furniture.
Commercial Umbrella / Excess Liability
If you are working on larger jobs, you may be required to carry limits higher than the typical $1,000,000 per occurrence for General Liability. An Umbrella or Excess Liability will give you excess liability coverage.
Employment Practices Liability
Any employer with more than one employee should have this coverage in place. This protects the business owner from employment-related claims and lawsuits by employees or potential employees.
From Artisan Contractors to General Contractors, Fixated Financial can provide your business with the coverage that you need to protect your business. With multiple carriers, we will be able to find the best coverages for your business at the most affordable price.