What Insurance Should Contractors Have?


All contractors are required to have some kind of insurance to comply with local, state, and national laws. Insurance also protects contractors and their businesses from liability, while also helping employees who suffer through an accident. However, many contractors will feel overwhelmed while trying to navigate the intimidating, complicated world of insurance. Here, we want to provide you with the right resources for the right insurance plan without making you feel like you’re paying a bundle for insurance you may not need.


General Liability Insurance: Cover The Basics


While there are specialized forms of contractor insurance available—some of which may very well pertain to your business—all contractors need to start out with some kind of general liability coverage in order to protect themselves. General Liability Insurance (sometimes called “GL” for short) will protect you from lawsuits and financial liabilities in the case of accidents or mishaps at your work site. Property damage and personal injury will generally be covered by a general liability insurance policy. Sometimes general liability insurance will be combined with a few other kinds of coverage in the form of a Business Owner’s Policy, but you may find you don’t need all aspects of BOP coverage.


Types of Specialized Insurance


If you perform specialized work—common examples include carpentry, plumbing, cleaning, landscaping, or electric work—you might want to consider an insurance policy that is particular to your field. Because different kinds of risks and accidents are more common or more likely in certain trades and types of work, your liability changes the more specialized you are. Think about your particular set of risks and consider a specialized, extensive policy that keeps these risks in mind.


Workers’ Compensation Insurance


Similarly, you’ll need to be prepared for on-site accidents with workers’ compensation insurance. Accidents happen all the time, whether from malfunctioning equipment or exposure to harmful materials while on the job. Workers’ comp protects your business by helping injured or sick employees during their recovery. It traditionally covers medical bills related to the workplace injury, lost wages, and legal fees. Without workers’ compensation insurance, you’re responsible for these expenses.


Vehicle Insurance for Contractors


Chances are your work requires at least one type of commercial vehicle in order to get your jobs done. If you use a trailer, a pickup truck, a commercial van, or any other kind of vehicle to conduct your business, you’ll want sufficient coverage for damage and injury. You are also required by law to have a sufficient level of insurance, so you’ll want to make sure your work vehicles are properly protected in order to cover your legal obligations.


Where to Learn More about Insurance


Most insurance companies will be able to provide information and advice on the types of commercial insurance that they offer for contractors and make recommendations as to what kind of insurance is right for you and your work. However, the building business is always changing, as are licensing and insurance needs. There are some great references to be found, and working with a contractor license school can help keep business owners in the know when it comes to the various insurance and legal stipulations that are key to maintaining a healthy, growing business. Do yourself and your business a favor by investing in insurance and education so you can rest easy knowing you’re completely covered.
Post submitted by Guest Blogger Albert Krav

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