As a new small construction business owner, you might not know that insurance is essential. Not only do you need the right contractor business insurance policy, but you also need the right coverage amount. The financial impact of negligence or error on your part can destroy a contractor business. This happens if the injured third-party decides to take legal action. So the question remains; what contractor business insurance should you get?
The answer to this question lies in the kind of contractor business you operate. You don’t want to spend money that should go into growing your business on insurance policies that you do not need.
Before we go into answering this question outright, let’s take a look at the different kinds of contractor business insurance and how they apply to your business.
Types of Contractor Coverage
As a contractor business, you’ll need more than one insurance policy. But which policies depend on the kind of business you operate, the size, and the limit of risk your business can take. In addition, state laws mandate some insurance policies, and some can be add-ons that make your contractor business fail-safe.
1. Contractors Liability
This type of contractor business insurance offers coverage on damages like bodily injury or property damage to a third party due to negligence on the contractor’s part. It also provides coverage for personal and advertisement damage.
Having a well-detailed general liability insurance package will exclude you from any legal defense fees, settlement fees, and all the fees incurred as a result of damages to a third party.
2. Auto Insurance
This policy offers the essential coverage plans of a typical auto policy, but in this case, structured for business vehicles.
Policies like comprehensive coverage, collision coverage, medical payments coverage, personal injury protection, uninsured/insured motorist coverage, and liability coverage plans are all covered under this policy for contractor businesses.
3. Workers Compensation
This policy, popularly referred to as worker’s comp, is meant to pay off all the benefits incurred as a result of bodily injury to your employees or hired artisans that get injured during a project.
Having a good Workers Comp excludes you from payments like medical expenses, lost wages, costs for specific disabilities caused by on-the-job accidents, and a death benefit.
What Contractor Business Insurance can do for you
At the very least, all contractors must have General Liability and Workers Comp. But why?
- According to most state and municipal laws, contractors are required to have Liability Insurance and Workers Comp before you can set foot on the construction site.
- Some banks will want you to show that you have insurance before they will grant you a loan.
- Project owners want to feel secure that their projects are in safe hands. As such, they could require you have general liability. This will pass their financial risk onto you. You, in turn will pass it on to your insurer.
Where to get Contractor Business Insurance?
Contact Contractors Liability on 866-225-1950 to get quality contractors business insurance at the best rates.