If you are a contractor, you should consider purchasing contractor business insurance to protect your business from unforeseen risks and expenses. While contractors are always cautious and prepared, it is not possible to predict everything, so it’s important to take precautionary measures. A comprehensive plan will ensure that your business stays protected no matter what.
There are several types of contractor business insurance policies. The most important type is general liability insurance, which covers many different aspects of a business. It covers the cost of medical treatment for injured customers, repairs to damaged property, and legal fees, among other things. It also provides protection for your equipment, which can be valuable to your business. Some policies also include surety bonds, which provide additional protection to contractors while working on a project. These surety bonds also protect clients in the event of a malpractice or negligence claim.
Contractors should also choose an insurance carrier with multiple additional insured endorsements. It is also important to choose a broker who has experience using these forms. Otherwise, the insurance program could have trouble covering independent contractors. To make sure that your business is adequately protected, choose an A+ rated carrier that specializes in providing insurance to small to medium-sized businesses.
When evaluating insurance policies for contractors, remember that the cost of coverage depends on several factors. A contractor’s size, the industry they’re in, and the insurance company they’re using. Compare quotes from different insurers to find the right insurance for your needs. A slightly higher-priced carrier might be worth it if it can meet their needs.
Contractors should also consider purchasing a BOP (business owners’ policy). This policy is very inexpensive and covers many risks associated with running a small business. It includes liability and property coverage, hand tools, and property in transit. Heavy construction contractors, however, might find it difficult to secure this type of coverage because of the size of their business and the higher risk involved.
General liability insurance is another common type of contractor insurance. It covers the costs of any accident that may occur on the job site. It may even cover the cost of damages to property. It also protects contractors’ equipment. It is also required by many government contracts. When a contractor is completing a building, there is a risk of causing property damage, including injuries to visitors, so it’s important to purchase general liability insurance.
Contractors should also purchase commercial auto insurance. It covers damage to property and damages from theft or auto accidents. This is especially important if a contractor has employees who are required to drive to multiple locations. For example, an artisan contractor might need to travel to multiple locations on a daily basis. Commercial auto insurance is a great way to protect your business if something happens to your employees while they’re working.