Buying contractor insurance doesn’t have to be complicated, expensive, or take a lot of time. Once you know why you need coverage, and what policies will best protect your business, getting insured is a snap. Here’s what you need to know to get the insurance your construction business needs to succeed.
If you are a general contractor, contractor, subcontractor, or owner of a construction business, you need insurance. Some insurance policies are even required by law to operate a business. Whether required or not, the right insurance coverage can help protect your construction business from the risks that could hit your bottom line and even demolish your business entirely.
What contractor insurance is right for you?
There are different coverage options available to protect your business, and various factors will help you determine what is right for you. Here is a quick rundown on what coverage is available to you, and how each policy protects what you’ve built.
Contractor General Liability
General liability insurance offers protection from third-party lawsuits in the event of injuries or damages. This could include injury or damage to someone’s person, property, or even reputation. If a third-party decided to bring a lawsuit against you or your construction company, general liability is there to cover legal expenses such as the cost of your defense as well as settlements and awards. Small business owners who are sole proprietors or in partnerships have the most to lose in the event of a lawsuit, so carrying general liability insurance is a must for these business entities.
If you are using your personal vehicle as your work truck, don’t expect your personal auto policy to provide the insurance coverage you need. Once you start driving yourself to and from project sites, allowing your employees to drive your vehicle, or transporting tools and equipment for work, your automobile is more than just a personal vehicle. Commercial auto coverage protects one of your largest assets; your work vehicle.
Who helps you get the job done? If you have employees, you may need workers’ compensation insurance. Workers’ comp provides wage replacement and medical benefits in case your employees are injured while at work. Coverage protects you from expensive lawsuits, and protects your employees from costly medical bills. Not only is workers’ comp a win-win for employer and employee alike, in states such as California it is also required by law.
Tools and Equipment
Contractors and construction professionals take their tools with them from project site to project site. While transporting your tools and equipment to work, they are at risk from a number of threats from theft to damage or loss. Tools and equipment coverage (also known as inland marine) protects your generators, welders, compressors, high-value handheld power tools, and other equipment. You need your tools to get the job done, and this coverage means you won’t pay out of pocket to replace them in a worst-case scenario.
Contractors can protect their assets on a project site with builders risk insurance, which is also known as course of construction coverage. This specialized type of property insurance protects your project site during the course of construction, including the materials, fixtures, and supplies that you have onsite. If a portion of your project was ruined by fire, high winds, theft, or vandalism, builders risk will help you to repair the damage, replace materials and supplies that were lost, and get you back on track.
How to Apply for Contractor Insurance
Getting coverage is quick and easy. Once you know what kind of insurance you are required to have by law, and which additional coverage will best protect your assets, you can quickly get a quote from Hunter Insurance Specialists. When you are ready to get a quote on contractor insurance, all you will need to provide is:
- Phone number
- Contractor license number
We will shop our top rated insurance markets to provide you with the most competitive rates on the best coverage you need to protect your business.
When you are a small business owner or independent contractor, protecting your business assets is crucial. One unforeseen incident, accident, or lawsuit could be all it takes to destroy everything you have built. The right insurance coverage will give you the peace of mind that your business is built on a foundation of protection.