What Insurance Do I Need as a Contractor? – Bethany Insurance Agency

Working as a contractor, whether in electrical, plumbing, or construction, can be incredibly risky. The job involves many employees and machinery to complete the job on time, requiring employers to keep an eye on many moving parts at the same time. Therefore, when the necessary precautions are not taken, either by the worker or the company, it can be a breeding ground for injuries or property damage and litigation. Having the right type of insurance for contractors can help mitigate potential risks, such as lawsuits and hospital expenses.

now let’s look at some of the different types of contractor insurance to help you identify which one works best for you.

Reading: What type of insurance do contractors need

1. general liability insurance

It is imperative that independent contractors obtain a general liability insurance policy as it protects you against potential costs such as injuries and medical expenses. Plus, it protects you as a contractor from damage you might have caused to a client’s property or as a result of defective construction materials.

It is important to note that general liability insurance does not protect against losses resulting from professional negligence, so it is a good idea to combine general liability insurance with professional liability insurance.

2. professional liability insurance

every human being is prone to making mistakes no matter how good they are at what they do. Professional liability insurance covers costs resulting from faulty design or construction that may affect the completion of a project.

While the policy only covers damage that results in financial loss and not the cost of redoing the project, claims for negligence from an internal source or a third party are insured, which greatly eases the strain of those stressful situations .

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3. commercial auto insurance

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Even if you don’t have a fleet of vehicles that are useful to your business, it’s important to insure the ones you do have. using your vehicle to run company errands is not the best option. It is best to have a car in the company name that you can insure with the commercial auto policy. either way, any car used for your contract jobs must be insured outside of your regular auto insurance policy.

Truck and cargo insurance covers all types of vehicles, including small trucks and vehicles, trailers and dump trucks. If the vehicle is used on the road in the county where it is registered, it is recommended that you have a commercial auto insurance policy.

4. workers compensation insurance

Contracting jobs often involve a great deal of bodily risk, which inevitably leads to accidents occurring on the premises. when one of your workers gets caught in the middle of this, the last thing they want is to be completely financially responsible.

If an accident involves an employee, workers’ compensation insurance policies cover the treatment your employee needs to recover. These policies also cover wages that are lost while the employee is taking medical leave, facilitating his recovery with the knowledge that he will continue to be financially covered.

5. inland marine insurance

If you’re in the construction industry, then you know your job is to transport goods from one place to another. therefore, it is recommended to have inland marine insurance. for contractors, it’s must-have coverage.

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In simple terms, inland marine insurance covers products, materials and equipment when they are transported overland (commonly by truck) or while temporarily stored at a job site or warehouse. With inland marine coverage, you can avoid damage sustained in the event of accidents, theft, vandalism or total loss. our internal maritime policy ensures that when your business is on the move, we will protect certain elements, such as:

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