Insurance Checklist for Contractors
An insurance checklist for contractors can help you narrow down your specific insurance needs as a contractor. The best insurance coverage for contractors is essential for a number of reasons. It will help you get more jobs, protect your business from financial loss, and give you peace of mind.
In this article, we will help you find the best insurance coverage by advising you on 6 contractors’ policies which can protect your business. This insurance checklist for contractors will get you started by reviewing several types of insurance that might apply to your contractor’s business. These include:
1. Builder’s Risk Insurance
Builder’s Risk Insurance covers buildings or structures during the course of construction, remodelling, or renovation. Your Builder’s Risk also covers:
- Building materials
- Equipment used to service the property
- Construction materials and equipment stored off-site or in transit
- Debris removal
- Labor costs
- Contamination clean-up
2.Commercial General Liability (CGL) Insurance
Commercial General Liability is an insurance policy that protects you from claims related to bodily injury or property damage stemming from your operations. It pays for third-party medical expenses or property repair, as well as your legal fees, should someone sue you. Commercial General Liability is one of the policies on our insurance checklist for contractors, which is often required by law, depending on which state you live. Even if Commercial General Liability is not a legal requirement in your state, clients often insist on contractors having this cover before they will hire you. The coverage is also known as “Contractor General Liability Insurance.”
3.Workers Compensation Insurance
Workers Compensation Insurance ensures employees injured while on the job get medical care and compensation for lost wages. And if a worker gets killed while working, the coverage provides death benefits to his/her dependents. Most states require employers to carry Workers Compensation Insurance. So, if any of your subcontractors don’t have this cover, their employees become yours.
4.Contractors Professional Liability (CPL) Insurance
Contractors Professional Liability Insurance protects you by providing coverage for construction errors, negligence, undelivered work, and misrepresentation. CPL also provides coverage for mistakes made by third parties associated with your projects, such as architects and engineers.
Commercial Property Insurance
Commercial Property Insurance protects any commercial property your business owns or is responsible for, from damage or loss by fire, theft, and natural disaster. Types of property you should consider insuring under this coverage include the building that houses your office, all office equipment, valuable company documents, inventory, fence, landscaping, and business signs.
Commercial Auto Insurance
Commercial Auto Insurance is the last coverage we will review in this insurance checklist for contractors. The policy covers damage to your business vehicle and bodily injuries when you or an employee are involved in a collision while driving. It also protects your business vehicles from theft or damage that occurs while it is parked. Additionally, it covers third-party property damage or injuries.
Your Insurance Checklist for Contractors
The construction industry is one of the most dangerous to work in, and therefore adequate coverage is essential. We hope this insurance checklist for contractors helps narrow down your options for the best insurance coverage. For more details on Builder’s Risk Insurance, General Liability Insurance, Commercial Property Insurance, other coverages discussed here and more, contact Contractors Liability at 888-676-0923. We are eager to help.