Contractors Insurance Information
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What is Contractor's Insurance?
Like any business, general and independent contractors need insurance to protect themselves financially. Most contractors need general liability insurance at the least. What type of insurance you need depends on the type of work you do. When it comes to contractor liability, you need to seriously consider your risks. If you go direct to a major insurance carrier like Progressive you could be leaving money on the table. Trusting your insurance to an experienced broker can get you access to smaller niche insurance carriers.
Special features you could also be qualified for:
Coverage for your tools from theft or damage
Better rates for workers compensation
Extended blanket insurance for larger jobs
Special access to bonding experts for larger contracting business bids
Some types of independent contractors we excel at finding coverage for include the following:
Independent construction contractors (especially oil & gas contractors!)
Restoration & remodeling professionals
Repair handyman, or servicing contractors
Plumbers, carpenters, electricians, painters (great teams get great rates!)
House cleaners and commercial carpet cleaners
Contractors are like any business. You need property and general liability insurance to minimize the basic financial risks of running a business. Additionally, contractor insurance includes coverage designed for specific industry risks. Our agency can find a customized policy that includes coverage most suitable for you. If your employees are mobile, you need to think about a commercial auto policy too. Most accidents happen between jobs.
What Types of Contractors Insurance are Available?
There is a wide variety of contractor insurance options and information available. Check out our contractor liability insurance posts on our blog here too!
Here are common insurance policies for independent contractors:
General Liability Insurance (Bodily injury and property damage): This coverage is for every type of contractor. Contractors who work with heavy machinery and need to be prepared for accidents due to extra hazards might want extra coverage. This insurance is the most affordable business policy and will be the broadest coverage to keep your interests safe.
Professional Liability (E&O Insurance): This coverage can protect you from liability risks due to losses a client may experience from mistakes you make. It protects your business’s finances if a client accuses you of errors, whether due to mistake or negligence. Some clients even require to you to have E&O insurance just to cover the chance that you make a mistake.
Commercial Auto: Any vehicles owned by your business must adhere to state auto insurance laws. You can also protect your vehicles from various damages or theft.
Builder’s Risk: This covers property and raw materials while construction is underway. This type of policy is often written per project.
Workers Compensation: Independent contractors may or may not need workers compensation. This coverage compensates employees for medical expenses and lost wages after an on-the-job injury.
Are You a Contractor in the State of Colorado?
If you are one of the many contractors in the state, you may already know that some of the most lucrative contracts out there are the ones working to expand our current infrastructure in the Denver Metro area. If your business has ever taken on any of these state contracts or plans to in the future, then you need to get familiar with CO SB 19-196 and how this new Colorado law will affect your business and the projects that you can bid on beginning in July 2021. Click here to learn more.
Do You Know How Subcontractors Can Increase Your Risks?
If you are hiring subcontractors, you will want them to have general liability insurance. Your general contractor liability depends on them having insurance. Insurance you carry as a business may not protect you from liability for a subcontractor worker.
Suppose your subcontractor doesn’t have insurance and drops a server, A/C unit, or other expensive equipment. You could be held liable if your subcontractor can’t pay. This can expose you to lawsuits if a worker injures someone on the job or damages client property. Business owners need to cover their bases, and after awhile it becomes too much to handle.
Here at Alliance, we handle all types of complex commercial insurance policies and our goal is to help you grow your business, and protect you along the way.
We can tailor your insurance policies to the complexities of your business. Fill out the form below to get started with a free multi-carrier insurance quote.