6 Insurance Coverages Contractors Should Have
Contractors are responsible for the construction, renovation, and maintenance of structures. The nature of their work exposes them to various risks that can cause financial losses and legal claims. Therefore, contractors need to have the right insurance coverage to protect their businesses, employees, and projects from potential hazards. In this blog post, we’ll discuss six essential insurance policies that every contractor should consider.
General Liability Insurance
General Liability Insurance is one of the most critical types of coverage that contractors should have. It covers bodily injury, property damage, and personal and advertising injury claims that arise from their operations. If a client or a third party files a lawsuit against a contractor for accidents or damages that occurred on a job site, GL Insurance can pay for the legal defense costs, settlements, and judgments.
Workers’ Compensation Insurance
Workers’ Compensation Insurance is another essential policy that contractors must have. It provides benefits to employees who sustain work-related injuries or illnesses, including medical expenses, lost wages, and disability benefits. Contractors who do not have Workers’ Comp Insurance can face hefty fines, lawsuits, and penalties.
Commercial Auto Insurance
Most contractors rely on vehicles to transport equipment, materials, and workers to job sites. Commercial Auto Insurance provides coverage for accidents, theft, and property damage caused by a contractor’s vehicles. It can also cover medical expenses and liability claims arising from auto accidents. Contractors who use their personal vehicles for business purposes should consider purchasing a non-owned auto insurance policy.
Property Insurance
Contractors often own or rent expensive equipment, tools, and supplies that are essential for their work. Property Insurance can protect these assets from theft, fire, vandalism, and other hazards. It can also cover the costs of repairing or replacing damaged or stolen property.
Builder’s Risk Insurance
Builder’s Risk Insurance, also known as Course of Construction Insurance, provides coverage for damages and losses that occur during construction projects. It covers property damage, including the contractor’s tools, equipment, and materials, as well as any physical construction done on the site. It can also cover losses that result from fire, theft, and other hazards.
Professional Liability Insurance
Professional Liability Insurance, also known as Errors and Omissions Insurance, covers contractors against claims of negligence, errors, or omissions related to their professional services. It can provide coverage for legal defense costs, settlements, and judgments. Contractors who provide design, engineering, or consulting services should consider purchasing this insurance to protect themselves from potential lawsuits.
If you are a contractor, protecting your business from potential hazards should be a top priority. Having the right insurance coverage can give you peace of mind and protect you from financial losses and legal claims. Consider working with an experienced insurance agent who can help you evaluate your risks and recommend the coverage options that fit your needs and budget. Invest in insurance today and safeguard your hard-earned business.
We are here to review your contractors insurance policy and answer any questions you may have. Contact your local Greenville insurance agent, Premier Insurance Consultants today.
Disclaimer: This article is not expert advice. Limitations and conditions may apply. Please check with your local Independent Insurance Agent for details.
