Contractors insurance is a type of insurance policy that provides financial protection for businesses that engage in construction or other contract work. It's composed of many different coverages. Here are some of the most important ones.
General Liability Insurance
General liability insurance is a type of coverage that provides protection for contractors against third-party claims of bodily injury or property damage. This coverage is important for contractors as it can help to cover the cost of medical expenses and legal fees if someone (non-employee) is injured on a job site. It also helps cover the cost of repairs if property damage occurs.
Workers' Compensation Insurance
Workers' compensation insurance is a type of coverage that provides protection for contractors against claims of work-related injuries or illnesses. This protection covers the cost of medical expenses and lost wages if an employee is injured on the job. It also provides protection for contractors against claims of negligence.
In addition to being highly recommended, workers' compensation is required in many states. Rates for contractors are often higher than the rates that businesses outside of the construction industry face, but this is still insurance that contractors shouldn't skip getting.
Commercial Auto Insurance
Commercial auto insurance is a type of coverage that provides protection for contractors against third-party claims of bodily injury or property damage caused by a contractor-owned vehicle.
Contractors who use vehicles in their work need this coverage. Not only can it help with the cost of repairs or replacement if a vehicle is damaged in an accident, but states also require auto insurance.
Equipment insurance is a type of coverage that provides protection for contractors against loss or damage to equipment used in their work. When the cost of replacing damaged or lost equipment can be significant, this insurance should be considered. The coverage often will also pay for repairs if the equipment is damaged.
Builder's Risk Insurance
Builder's risk insurance is a type of coverage that provides protection for contractors against loss or damage to a project while under construction. It can also assist with paying for materials and labor if a project is delayed due to damage.
Umbrella insurance is a type of coverage that provides additional protection for contractors beyond their basic liability insurance. Umbrella coverage may pay the costs of claims that exceed the limits of their basic liability insurance, and a single policy's umbrella coverage might supplement multiple primary liability insurance coverages.
For more information about contractor insurance, contact a local company.