Builders must carry the right contractors general liability insurance to protect themselves and their customers against losses that can occur during a construction project. It is important for contractors to understand that contractors insurance is different than any other type of liability insurance, complete with its own limitations and specifications. When looking for contractors general liability insurance, builders should consider the following critical tips to avoid costly mistakes and to get the right coverage for their business.
General Liability Insurance for Contractors
Every business needs liability insurance. Builders need liability insurance that protects against the specific perils they are most likely to encounter. It is important that builders and contractors purchase contractors general liability insurance to protect the business, customers, employees, and projects under construction from any possible losses. Business owners must also understand the limitations of their policies, and how they affect insurance coverage. This is especially important with regards to coverage limits.
Business owners must purchase enough coverage to reduce the likelihood they could still be responsible for a portion of an expensive claim if their policy coverage is not high enough. If business conditions change, owners are encouraged to discuss current policy limits with their insurance agent and increase coverage if necessary.
Auto Insurance for Business Vehicles
Vehicles used for business in any way are not covered under a personal auto insurance policy. This is a common and sometimes costly mistake, one that contractors must avoid. Any claim made on a business vehicle that is insured under a personal policy will likely be declined. This could leave business owners liable for vehicle damage, property damage, and any person’s injuries. It is important to understand that commercial auto insurance will cover work vehicles but does not typically cover tools and other equipment that might be inside those vehicles. Business equipment should be insured under the contractors insurance policy or purchase a separate rider for tools and equipment.
Workers Compensation Insurance
Workers compensation insurance provides medical and liability coverage for employees if someone is injured while on the job. Although it is not mandatory for a business to carry workers compensation insurance in Texas, it is still a highly recommended addition to any contractors general liability insurance policy. Businesses who chose not to provide workers compensation coverage must file their status of non-coverage with the state. Adding this coverage to a contractors insurance policy protects a business from the possibility that they could be sued by an employee who has suffered an injury. Accidents do happen; workers compensation provides affordable protection for businesses and necessary medical care for employees.
Contractors general liability insurance is essential protection for any type of general contracting business. This coverage protects businesses against liability due to injury and other losses and is an important factor for getting more business. With the right contractors insurance, businesses will be able to show customers that they are adequately protected for liability and able to work for them risk-free. Still, no two businesses require the same contractors insurance; so working with an agent experienced in contractors general liability insurance is recommended!
Need Contractors Insurance In Bryan Texas?
Service Insurance Group Offers Contractors General Liability Insurance!
Contact Either Location Listed Below:
College Station - (979) 431-5015
Texarkana - (903) 202-0865