Contractors Liability Insurance
A combination of skills, licenses and adequate business insurance gives your company an edge among your competitors and makes you more credible and reliable to prospective clients.
Additionally, as a contractor, your company is exposed to potential damages and lawsuits that may send you out of business if you lack a stable financial safety net. Contractor liability insurance provides protection against adverse economic effects of unforeseen circumstances that could slow your business down. Some of the risks covered include damages to physical assets, work-related and third-party injury claims like medical expenses as well as funeral cost.
Types of Contractors Liability Insurance
Many contractor liability insurance products are sold standalone, depending on the insurer. You may get any of the following from most insurers in the business insurance market:
Contractors General Liability Insurance
General liability coverage covers your company against third-party claims as a result of bodily injury or damage to someone’s property caused by your company. The policy doesn’t protect your own property.
Contractors Workers’ Compensation
Every state has a law that requires a business owner to partly or wholly provide the medical bills of employee’s work-related accidents and illnesses. This is the essence of workers compensation. The product also covers your employees’ lost wages, rehabilitation cost, and death benefit to the families of workers who die on the job. Most workers compensation insurance policies also offer employers liability insurance.
Contractors Commercial Auto Insurance
Commercial auto insurance covers any damage done to or caused by vehicles used for business. The policy has four types of products, which are:
- Auto liability: This covers bodily injury or property damage caused by your vehicle
- Uninsured motorist coverage: This covers damage to your vehicle caused by an uninsured vehicle, i.e. if the person who hits your vehicle isn’t insured
- Medical damage coverage: This product covers medical bills if you or any passenger in the vehicle is injured. It doesn’t matter if the fault was from you or someone else.
- Physical damage coverage: This provides coverage if your vehicle is damaged by something other than an accident.
Contractors Professional Liability Insurance
It is also known as professional indemnity insurance. If any of your clients suffers financial loss as a result of your company’s negligence or errors, you will be covered by this product. Professional liability is very important for businesses operating as service providers. Commercial General Liability policies excludes coverage for contractors professional liability coverage.
Contractor’s Equipment Insurance
The policy covers the operational tools and machinery owned or rented by your business, so long it is in your possession. The covered equipment will be protected against perils, such as vandalism, theft, flood and fire. The coverage isn’t tied to a specific location, as it also covers mobile machinery, such as forklifts, trailers and inland marine. Contractor’s equipment insurance is inevitable for construction contractors.
What to Consider When Buying Contractors Liability Insurance
Every business has its own uniqueness, and as such will require a customized coverage. Your contractor insurance should be in line with the common events in your line of work. Additionally, priority for a product should be considered based on the level of risk. For instance, there will be a major difference in workers’ compensation policy needs between your office employees and field employees, because the odds for work-related injuries for the latter are higher. Above all, speaking to an experienced insurance broker will help you make the right decision. We at Safepro Insurance Services are ready to assist you.