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Insurance Checklist for Contractors – Coverage You Need

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
  • Landscaping
  • Scaffolding
  • Contamination clean-up
  1. 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 the law requires, 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.  Contractor General Liability Insurance is its other name.

  1. 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 dies 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.

  1. 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.

  1. 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. Furthermore, 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.

  1. 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 have a vehicle collision while driving. It also protects your parked business vehicles from theft or damage. 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 866-251-1950. We are eager to help.

Avatar for John Brown
Written by: John Brown
John has more than 25 years of experience in the insurance industry. He grew from a star insurance producer to owning one of the largest agencies in the country; he's a reference regarding contractor's insurance, commercial insurance, and builders' risk insurance.