Insuring your business is often the last thing on your mind but the first thing you should do when you go into business. Yes, you want to make money, treat your staff well, and establish yourself in the community. However, you can’t do any of those things if you don’t have insurance that backs you up and protects the business against a range of losses and liabilities.
Look over these insurance policies to learn the eight types of insurance that every contractor should carry—irrespective of the sort of work you do every day. Commercial sector losses have been rising around $10 to $15 million per year, and you must protect yourself with appropriate insurance coverage, limits, and policies.
1. General Liability Insurance
Construction companies need general liability insurance to cover all injuries and property damage caused by their work. Remember, however, that some contractors are taking on massive jobs where the stakes are incredibly high, meaning that the limits of a traditional policy may not be enough to protect your business.
As a result, you may want to consider excess or umbrella coverage. With these forms of insurance, you can either expand your coverage or extend your limits.
2. Professional Liability Insurance
As a licensed contractor, you’re putting that certification on the line when you take any job. At times, upset customers or local may make claims against your license due to claims of shoddy workmanship, etc.
Professional liability insurance specifically targets these types of claims, offering legal support and helping you pay for judgements, fines, or settlements that may arise after a claim.
3. Pollution Liability Coverage
Pollution liability insurance for contractors is an important bit of coverage that will protect you against claims that you’ve caused pollution or disturbed the community. Moreover you should carry this sort of insurance when you work directly with systems like sewer lines that could spill or leak pollutants.
4. Inland Marine Coverage
Inland marine insurance covers items that are waiting for installation or that may be sitting in storage. It can even cover toolboxes stolen from work trucks, damage caused during unloading, etc. This insurance coverage allows you to replace or repair those items, and it extends coverage that is generally not available under a traditional business policy.
If you like, you can purchase blanket builder’s risk insurance on a per project basis.
5. Workers’ Compensation
Workers’ comp is not only required of you, but it’s the right thing to even if your business isn’t necessarily required to carry this sort of coverage. In short, workers’ comp is the only thing that can replace to income of injured workers and pay for their medical expenses.
You can transfer your liability to the insurance carrier, and they handle all claims made by employees after work-related injuries.
6. Commercial Auto
Every vehicle your business owns or uses should be covered under a commercial auto policy. If you or your employees use personal vehicles for work, you should upgrade your coverage because the primary purpose of that vehicle is work-related. You can either contribute to upgrades for your staff or recommend our services when they’re hired.
7. Surety Bonds for Contractors
If you’re required to purchase surety bonds for particular projects, you can partner with us to obtain those bonds In the amount that suits the situation. Surety and and license bonds are especially important when obtaining contracts in particular locales or when doing work for the municipality.
8. Cyber Insurance
Cyber insurance protects your business from data losses and breaches. Because you’re managing sensitive information, you must carry insurance that helps you recover when that information is lost. Moreover, you need coverage that will pay to investigate the breach, notify affected parties, and pay any fines, penalties, judgments, or settlements levied against your business.
Contact The Liberty Company for More Information on Contractor’s Insurance
Reach out to The Dale Group for additional information on contractor’s insurance and how to properly protect your business. While these eight types of contractor’s coverage cover a wide range liabilities, you must tailor your insurance portfolio to meet the unique needs of your business, and we’re happy to help.