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.
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 .
3. commercial auto insurance
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.
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:
- transported goods
- computer equipment and data
- contractor tools
- work of art
- buildings under construction
- location
- type and number of vehicles operated
- claims history
- general coverage needs
- number of employees
These insurance policies do not instantly cover damage caused by natural disasters such as earthquakes, floods or hurricanes. These additional protections can be added, but it is important to note that the policy does not come with those protections in place.
6. business owner’s policy (bop)
bops is a comprehensive insurance policy that is primarily aimed at small and medium-sized businesses and is quite customizable. Depending on the policy, it will cover property, business interruption, and commercial general liability insurance.
bops will also cover completed projects and those projects that are still under construction, regardless of whether the property is rented or owned.
how much does contractors insurance cost?
Contacts insurance varies on a case-by-case basis depending on what you want to cover. One of the determinants is the specific trade that needs to be covered. for example, how much a plumber pays will differ from what a carpenter pays.
Other variables that affect the cost of the contractor’s insurance policy are:
bethany insurance will build the right foundation for your protection
For all craft contractors and their unique needs, bethany insurance agents are here to answer all of your questions and help you find the policy your business needs. Contact us today to request a quote or to review the different options available for your business.
