Contractor business insurance protects your company’s finances and reputation in the event of an accident. Having the right coverage in place is important to prevent expensive lawsuits.
Some factors can affect the cost of your contractor insurance. These include: years in business, location, and claims history.
General Liability
Contractors are often required to have general liability to work on certain jobs or clients. This policy protects them if a third party feels they have been physically or financially harmed by work on their property. A single lawsuit can easily derail a small business, so having this coverage is essential.
Typically, this coverage is combined with property insurance in a BOP or is available as a stand-alone policy. In addition, some contractors may want to add commercial auto or a business owner’s policy to round out their coverage.
Whether you’re an independent contractor or a larger construction firm, accidents can happen. Having the right insurance company Poulsbo, WA can help you avoid financial ruin and return to working as usual. It also provides peace of mind that your customers feel safe and secure when hiring you to complete their projects. Licensed vendors are less likely to skip out on payments, and quality work from a trusted vendor can increase the resale value of homes and businesses when it comes time to sell.
Loss of Earnings Coverage
This insurance protects contractors whose projects are interrupted by a covered peril. This includes expenses such as rent for equipment and paying employees while work is delayed. It also covers the cost of lost revenue. This type of coverage is also known as business income insurance.
Some larger contractors require their subcontractors to carry this type of coverage. This is especially important if the subcontractor’s work could cause damage to a client’s property or result in a personal injury. Often, the insurance policy’s limits are raised by adding an umbrella. Additionally, hired and non-owned auto liability is added to the general liability insurance to cover accidents caused by vehicles you don’t own or temporarily use.
Business Owner’s Policy (BOP)
While small businesses can buy insurance policies individually, many opt for the convenience and cost savings offered by a business owner’s policy. This “package” policy combines property and liability coverages into one customized package tailored to your business’s needs.
The property portion of a BOP helps protect the commercial property you own, lease, or rent (including buildings, furniture, and inventory) from physical damage caused by fire, windstorms, explosions, burglary, and other covered disasters. It also covers loss of income and other expenses you might incur while your property is repaired or replaced.
While a BOP may be the ideal option for contractors, it’s only right for some companies. It would help if you considered other types of commercial insurance, like worker’s compensation and a commercial auto policy, for the additional protection they provide.
Commercial Auto
Contractors use a variety of vehicles to transport equipment and personnel, and these larger vehicles are at a greater risk for accidents than personal vehicles. Specialized business auto insurance (also known as commercial vehicle insurance) offers coverage for these higher risks, including damage to the vehicle and liability claims when a collision occurs. This policy can also include hired and non-owned auto coverage, which helps protect a company when an employee uses their vehicle for work errands or when a contractor rents or borrows a vehicle to complete their job.
Whether you work in plumbing, logging, construction, or a door-to-door consulting service, having the right insurance is essential to keep your business running smoothly. Typically, these types of businesses require contractor liability and commercial auto insurance. In addition to offering more comprehensive protection than personal auto policies, a commercial vehicle policy may provide perks like roadside assistance and deductible waivers that significantly reduce costly repair bills.
