If you are a contractor or are in the process of hiring a general or independent contractor for a project, you should be prepared for any accident or injury that may occur in the workplace. Therefore, it is advisable that all contractors have their own insurance policies that protect them against all the risks that each different job can bring.
Insurance companies cover several areas of damage so you can consider getting one of the following policies:
- Tools and equipment insurance: This applies to tools with a value greater than $ 1,000 and it is important that you verify this with your insurance company to make sure your equipment is covered in case of damage.
- Structural damage or insurance against constructor risks (Structural damage or Builders Risk insurance): this is one of the most common policies for any damage that a contractor may cause while working on a construction project. The policy guarantees that the insurance company will pay to repair or replace damaged items.
- Insurance in case of injury (Insurance in case of injury): this is important since most injuries happen accidentally, either to employees or other people, in which case the insurance company pays legal costs and medical expenses .
- Workers’ Compensation Insurance (Compensation Insurance): useful in cases of injury when the policy covers medical costs and lost wages.
When hiring a contractor
It is always a good idea to verify all documents related to the company and the contractor, especially the insurance policy and its validity. Here are some more tips on what to look for in a policy if you are working as a contractor or if you are going to hire one:
- Check the contractor’s work history and look for any legal disputes or misconduct not resolved in the past. You should feel safe in your own home, so check references too.
- Request an insurance certificate and verify its validity with the agents listed on it.
- Keep in mind that short-term policies are not available and that all are annual.
- If you work with subcontractors, always make sure they have their own policies.
- Liability insurance: this is important for contractors, since they must know the risks of their own business, in which case the general liability only covers what is not excluded from their list.
- The general contractor must have the insurance of the contractor and is responsible for the welfare of employees who must have their own workers compensation policies.