Contractors provide a variety of services, from construction to plumbing and electrical maintenance. You will need insurance coverage to protect not only your business, but also your customers. Consider some of the policies you might need to add to your portfolio.
What Is Insurance For Contractors?
Like most business owners, contractors need a variety of insurance policies. Each will apply to different property and liability risks present in their line of work. When hazardous events occur, a claim on the appropriate coverage will help you fix costly problems without a massive financial loss.
Consider some of the coverage that might be best for you:
Business owners policies (also called BOPs) offer several critical pieces of insurance in one place. These include:
- Property Insurance that pays for damage to your commercial belongings and buildings. Coverage can pay following such events as fires, theft or certain weather damage.
- General Liability Insurance pays for harm that you negligently cause to someone else. It might pay for the injuries or property damage to third parties (like clients) for which you are responsible.
- Business Interruption Insurance helps you recoup expenses if you must shut down after a problem in the business.
BOPs are a great starting place for most small businesses. They let you get comprehensive protection in one place, and you can usually augment yours with more specific protection.
Make sure your liability insurance contains products & completed operations liability coverage. Products coverage pays when an item you make harms someone else. Completed operations coverage will continue to insure you against liabilities after you complete a job. Therefore, if the problem occurs later, protection still exists.
When driving for business, personal auto insurance will not cover your vehicle. A commercial auto insurance is more appropriate. It will contain coverage tailored to the investment the business has in the vehicle. Therefore, after accidents or other vehicle losses, coverage can pay for the recovery.
Inland Marine Insurance
When you transport equipment and materials to a job site, you need those items to have protection. Inland marine insurance is the coverage that applies to these items. You can insure equipment at a job site, along with materials that you plan to install during the job.
If employees get hurt on the job, or sustain a long-term injury, then they might have a right to workers compensation. Coverage can pay for their medical bills, rehab costs and income lost as a result of not being able to work. Most businesses must carry this coverage.
A myriad of other policies that might help you insure your contracting business. Don't hesitate to talk to one of our agents about the best way to set up your coverage.
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