Understanding Essential Insurance Coverages For Contractors
Posted on: 27 February 2023
As a contractor, protecting your business with insurance coverage is essential. There are several types of insurance coverage that contractors should look for in their policies to protect themselves and their businesses from potential financial losses. Here are some of the most important insurance coverages that contractors should consider.
General Liability Insurance
General liability insurance is one of the most essential types of insurance coverage for contractors. It protects against claims of bodily injury, property damage, and personal injury. This type of insurance provides coverage for legal expenses and settlement costs in the event of a covered claim.
The coverage is particularly important for contractors, as accidents can happen on job sites, and a lawsuit could be financially devastating for a small business.
Workers' Compensation Insurance
Workers' compensation insurance provides coverage for medical expenses and lost wages for employees who are injured on the job. This type of insurance is required in most states and is essential for contractors who employ workers.
Without this coverage, you as the contractor would be responsible for paying out of pocket for any workplace injuries. A tool-related injury or fall could have expensive costs associated with it.
Commercial Auto Insurance
Commercial auto insurance provides coverage for vehicles used for business purposes, including those owned by the business or those owned by employees.
This coverage is particularly important for contractors who frequently travel between job sites and transport equipment or materials. Without this coverage, the contractor would be responsible for any damages or injuries that occur while driving a business vehicle.
Professional Liability Insurance
Professional liability insurance, also known as errors and omissions insurance, provides coverage for claims of negligence or errors in professional services. This coverage is important for contractors who provide design or consulting services, as mistakes can be costly and result in legal claims.
Contractor's Equipment Insurance
Contractor's equipment insurance provides coverage for tools, machinery, and equipment used in a contractor's business. Contractors who own expensive equipment need equipment insurance. It's useful for cranes, bulldozers, skid steers, and the like.
Inland Marine Insurance
Inland marine insurance provides coverage for property that is in transit, such as equipment or materials being transported to job sites. This coverage helps contractors who frequently transport expensive equipment and materials to job sites.
Pollution Liability Insurance
Pollution liability coverage provides protection against claims related to environmental damage caused by a contractor's work. This coverage protects contractors who work in industries such as oil and gas, where the risk of environmental damage is higher.
To learn more about contractor insurance options, contact an insurance provider in your area.Share