As a contractor, you and your employees face a number of risks every day. From the possibility of injury to the chance of equipment sustaining damage on the job, you need more than just basic liability contractors insurance. To appropriately protect your business and financial investment, it is important to work with a contractors insurance agency that can offer you policies that provide the protection you need.
Do not just assume that you have enough coverage when it comes to liability insurance. Talk to a contractors insurance company about all of the important policies that can help your business stay profitable even if a loss happens.
General Business Liability Coverage
A general liability policy is a type of contractors insurance that covers you and your business against injuries that could happen to other people at your business location or on a jobsite. If someone is injured and sue your business for negligence, this type of policy that is sold by every contractors insurance company pays medical costs, damage to property, and other losses.
Workers Compensation Coverage
Workers compensation insurance covers injuries sustained by employees or subcontractors while they are working. This coverage also pays for lost wages due to an injury, lost earning potential, and a number of other benefits.
Although workers compensation is not required coverage, it is a policy that contractors insurance agencies recommend for any business with employees in order to prevent lawsuits filed by employees injured on the job.
Commercial Auto Coverage
If your business has work vehicles, they must be covered under a specific commercial auto policy. They may not be insured through your personal policy. Any vehicles used for business purposes, such as driving to and from worksites and hauling equipment and machinery, must be covered under a commercial auto contractors insurance policy. These policies provide different and greater coverage than do personal policies.
Equipment and Tools/Property Coverage
The equipment and tools owned by your business are an important necessity to keep the business going. In the event your equipment is damaged or is stolen from the work site, this policy written by contractors insurance agencies pays for repairs or replacement so you can keep working.
Bonding is not coverage for your business; it is actually an insurance policy sold to you by a contractors insurance company that protects your customers. Bonding is a financial promise to your customers that once you have accepted their job, you will actually do the work and complete it. If you do not, your customer may file a claim against the bond and get their money back.
You are then required to repay the bond. Bonding is a guarantee of good faith as well as a confidence measure for your customers. You may even be required to be bonded in order to bid on certain projects.
Other Specific Coverage
In addition to the policies mentioned above, your business may also need other more specific coverage that relates to the industry, work location, and even your expertise as a professional. It is important to protect your business against these more specific losses or lawsuits in the event of errors, improper interpretation of local laws, and other industry concerns with the right additional liability policies.
Doing business today can be a complicated matter if you do not have the right contractors insurance to protect yourself every step of the way. Regardless of what type of service your business provides, be sure you purchase the policies you need from an experienced contractors insurance agency. Keep your business well protected by discussing your work with a contractors insurance company that can help!