Just about every business owner needs to have commercial insurance, and contractors are no exception. There are, however, a few things that set contractors apart from other business owners, which is why it's so important to have specialized insurance. Read on to find out what's covered under these kinds of insurance policies.
Property Damage
Contractors often perform their services at clients' homes or offices. They do their best not to damage any part of those properties, but according to realtimecampaign.com, accidents still happen. Contractor insurance policies include liability coverage that will pay for damages should an accident occur that damages the client's property.
Injuries to Clients
There are times when the work performed in the course of completing a client's project can be dangerous, and unfortunately, property owners aren't always as careful as they should be when entering the construction zone. Contractor insurance covers any medical bills for injuries to third parties, including clients, sustained in the course of performing regular work. Without it, contractors may have to pay for injuries out of pocket if they get sued.
Legal Costs
These days, the competition among local contractors can be fierce, with some businesses struggling to keep their doors open. Some unscrupulous contractors can try to undercut competitors by making claims, often false, of copyright violations. That's part of why liability coverage is considered one of the Insurance Essentials: Contractor Insurance is vital during recessions. Even proving that the claim is false can cost a small fortune in legal fees without it.
Commercial Auto Insurance
There are some differences between the insurance policies created for business owners and those targeting average drivers. For one, it covers both vehicles and employees. Contractors who have multiple employees or have allowed subcontractors to use a work vehicle may be held liable in the event of an accident if they don't have commercial insurance. Check out this recommended reading to learn more about coverage options.
Commercial Property Insurance
Many contractors have offices, even if their work is performed primarily in the field. Companies like Thimble offer commercial property insurance in addition to standard contractor insurance policies to make sure these buildings are covered. That way, the contractor's office, and its contents are protected against physical loss and damage in the event that a covered natural disaster occurs.
Workers' Compensation Insurance
The laws that govern workers' compensation insurance requirements vary by state. However, most contractors that have official employees must carry it. Workers' compensation insurance is separate from contractor insurance, but because it's so commonly requested, it's often possible to have the same insurer cover both of these crucial areas.
Every Contractor Should Be Covered
Anyone who works in the field on other people's properties can benefit significantly from purchasing contractor insurance, whether they're working alone, have employees, or are subcontracting out parts of their projects to others in the area. Even in places where it's not mandated, having the insurance coverage described above can prevent serious financial disasters. Given the affordable price of contractor insurance, there is no excuse for anyone to forgo it.
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