Skip to main content

contractor insurance policiesArtisans, specialty, and general contractors have experienced some dramatic changes in their industry over the past ten years. The litigious society has brought about these changes through new legislation, construction defect claims, and unreasonable contractual obligations. That is why it is imperative that contractors purchase contractor insurance policies specifically designed for their industry.

This helps ensure that contractors are adequately covered. Undoubtedly, when working in the construction trade, errors are bound to happen, which can lead to injuries and damages.

Construction sites are danger prone. While proper training and updated safety protocols are a must, having the proper contractor insurance is just as important. Lack of proper contractor insurance policies can have some devastating consequences to any company, regardless of its size or specialty. Below are five insurance coverage that every contractor should have:

1. General Liability Protection

Contracting and Construction jobs are very diverse and risky works where something can go wrong at the most unwarranted time. In the event that a client receives an injury while on your business premises, their medical expenses could be your responsibility. Also, if you install equipment that causes harm to the client, your business can be held responsible. To avoid such risks, you should purchase a general liability coverage, a business insurance policy that guarantees the following:

  • Damage to a third party’s property caused by you or your employee
  • Protections against claims of slander or libel
  • Third party bodily injury
  • And more …

2. Builder’s Risk Coverage

Obviously, if you are a contractor, you will be working at the client’s site, which exposes you to unique risks. For starters, your tools can get lost, damaged or even stolen at the construction site. Also, accidents happen, resulting in serious injury to you or your crew or damage to the worksite. Unfortunately, a typical property insurance policy will not cover these losses if they happened outside the primary location of your business. However, with a builder’s risk insurance you will get the following benefits, no matter where you work:

  • Your investments will be protected, and you will have financial security
  • Your business equipment will be protected

3. Surety Bonds

If you are an independent contractor or builder, it is imperative that you familiarize yourself with surety bonds and most importantly the permits and license bonds. These are required by certain states and townships to make sure that you complete your services as per building codes and other regulations. The bonds are a guarantee of surety to the government from your business.

4. Commercial Property Insurance

With the current growth of contracting and construction industry, construction professionals and contractors should consider having property insurance, which will help you cover the risks associated with your work. The property insurance laws will cover the physical damage and loss of property. This policy also covers the business property while in transit to the construction site.

5. Commercial Auto Insurance

A commercial auto insurance policy will cover you whenever you and your employees whenever commuting to and from the workplace. It will help you avoid the high vehicle repair costs, lawsuits due to accidents, and medical expenses in case of bodily harm. As such, this is one of the most important contractor insurance policies.

The construction industry is a competitive world, and one unexpected cost can turn a profitable job into a sure loser. Make sure you have the proper construction insurance protections in place, speak with a Brashears Insurance associate today.