Top 5 Policies EVERY Contractor Needs
You work hard every day to bring quality work to your customers, pay your worker’s and bring home a profit for your family. Unfortunately, with construction, one event that is not properly covered can undo all of your hard work.
Below are 5 of the most common contractor policies. Take a look and make sure you don’t have exposures that are not covered.
1. BUILDERS RISK INSURANCE
You might hear builders risk insurance (sometimes called course of construction insurance) is designed to provide insurance coverage on your project while you’re working on it.
In addition to buildings and structures, builders risk insurance policies can also cover building materials, landscaping, fencing, scaffolding, outdoor fixtures and more. Remodeling projects, as well as new residential and commercial construction and model homes, are usually covered too.
Builders risk protects your investment in a project — your materials, supplies, and completed work — from risks like vandalism, fire, and more.
2. WORKERS’ COMPENSATION INSURANCE
If you’ve grown your contractor business from a one-man operation to one with multiple employees, you’re going to need workers’ comp.
Workers’ comp is designed to cover medical expenses, lost wages, and other costs if an employee is injured while performing work for you. In some states, workers’ compensation insurance is required by law, even if you only have a single, part-time employee.
3. CONTRACTOR GENERAL LIABILITY INSURANCE
Contractor general liability insurance is a must-have insurance policy for any business owner. And that includes construction business owners.
General liability protects you from lawsuits resulting from third-party bodily injuries, property damage, and even advertising damages.
4. INLAND MARINE INSURANCE
Your tools and equipment are always on the move. Commercial property insurance is designed to protect equipment when it’s at the covered location — which means every time your tools and equipment leave your business to go to a job site, they’re at risk.
Inland marine insurance is designed to protect your property when it’s on the move, so be sure your investment in contractor tools and equipment (large and small) is protected by inland marine coverage.
5. COMMERCIAL VEHICLE INSURANCE
Just as you need to have insurance on your personal vehicles, you also have to ensure that your work vehicles are insured properly as well. It’s intended to protect you from lawsuits, medical claims, and repair costs that might result from an accident when your vehicle is used for work purposes.
If you’re relying on your personal auto policy to cover your work vehicles, you’re leaving yourself at risk. That’s why we’re here; to specialize so you don’t have to.
