Contractors, whether small, medium or large in size, face a lot of challenges when it comes to getting adequate insurance. Fortunately, with help from an insurance broker you can find the right type of coverage that protects your business against financial loss. Some of the most popular construction contractor insurance options are workers’ compensation, health and safety insurance, professional liability insurance, and commercial auto insurance.
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General Liability Policy (CGL)
General liability insurance is a popular type of coverage for contractors. It provides protection from third-party claims for physical injuries and property damage that occur during the course of contracting projects.
In the event of a claim, this insurance helps cover your legal fees and compensation payments. It also gives you peace of mind that should a client file a claim against you, your business won’t be financially impacted.
BOP Program for Small Contractors
Small contractors should prioritize securing a Business Owners Policy (BOP) to cover their basic coverage. A BOP usually includes general liability, workers’ compensation and property insurance for business equipment and tools. It will protect both you and your client base.
When shopping for a business owners policy (BOP), costs can vary significantly between insurers. But if you take time to compare quotes, chances are good that you’ll find an affordable policy that meets all of your business needs.
Contractor General Liability Policies Are Essential
Construction contractors need to protect their business from unexpected events that could put it at risk. The first type of contractor insurance you should secure is General Liability, which protects you in case clients or other parties make claims against your firm.
You have two options when purchasing this policy: either from your own insurer or the project owner’s. Typically, the owner’s policy will be cheaper and give you more control over your coverage.
Independent Contractors and Subcontractors
Construction operations often employ both independent contractors and their own employees, creating a variety of challenges for insurance coverage. On top of the difficulties in hiring and managing these contractors, many insurers charge an additional rate for coverage for uninsured or underinsured individuals who don’t have their own policies.
To guarantee your contractors are covered, ask your insurance agent about additional insured endorsements. These forms can be filed with your carrier to meet specific job specifications or requirements.
A reliable contractor insurance broker can explain how these endorsements function and guarantee you’re protected under your contract.
Professional Liability Insurance
If you provide design or consulting services, it’s wise to add professional liability insurance to your general liability policy. Doing so will safeguard you in case a client files a claim against you for negligence, omissions or mistakes made during your work.
A qualified insurance agent can offer advice on how to handle any issues that may arise during these projects. They’ll ensure you get the most from your policy by helping you sort through coverage options at a price point you can afford. Professional liability insurance can even provide coverage for claims related to your HVAC insurance plan.
