Contractors Insurance

As a contractor, your business operations include many risks and exposures. Even daily tasks that may seem routine can expose your company and employees to significant perils. Furthermore, contracts generally include crucial deadlines and stringent requirements that, if unfulfilled, could lead to lawsuits and substantial financial consequences. With that in mind, your business must minimize its potential out-of-pocket losses by maintaining a comprehensive insurance portfolio.

How Does Contractors Insurance Work?

It should first be understood that contractors insurance may not refer to a single type of policy but rather a collection of coverages that addresses common risks and exposures. When put together, this package of policies can create a diverse safety net to protect your business from financial losses that may arise from potential incidents. a person in a hat

While all businesses have unique circumstances and every project may differ in its details, in general, an adequate contractors insurance portfolio should at least include the following:

General liability insurance—This coverage can help pay for resulting third-party losses if your business is at fault for the following types of incidents:

Bodily injury
Property damage
Personal and advertising injury (e.g., slander, libel, false advertising, wrongful imprisonment)

Commercial property insurance—By including this coverage in your insurance portfolio, you may be able to access financial assistance for losses sustained by physical property used to operate your business, such as the following:

Structures
Equipment
Tools
Furniture
Signage

Landscaping

Builder’s risk insurance—This coverage can help pay for damages sustained by projects under construction, including structures and materials.
Professional liability insurance—This coverage can help pay for losses and expenses if a client accuses your business of providing services that were negligent, misrepresented, incomplete, incorrect or otherwise breached terms of a contract.
Workers’ compensation insurance—If your employees are injured on the job or develop a work-related illness, this coverage can provide financial assistance for the following:

Medical treatment

Lost or reduced wages
Disability benefits
Death benefits
Employer legal costs

Commercial auto insurance—This coverage protects your business financially from incidents involving your business-owned motor vehicles. This may include damage sustained by your vehicles and third-party losses for which you are liable.

Commercial umbrella insurance—This type of insurance can act as a secondary form of coverage and can provide additional financial assistance if the limits of other policies are exhausted.

You should also consider augmenting your business’s insurance portfolio with additional policies to account for any coverage gaps. Depending on your circumstances and operations, the following can also be advisable investments:

Employment practices liability insurance
Directors and officers insurance
Inland marine insurance

Cyber liability insurance

As a contractor, your business may also be required to purchase surety bonds through an insurance provider. These financial arrangements are binding agreements between you, your clients and the insurance company to guarantee that if you fail to fulfill your contractual obligations, your clients will be reimbursed for their losses.

How Much Does Contractors Insurance Cost?

There are many factors that insurance companies must consider before providing your business with an accurate quote for sufficient coverage. In most cases, this process will include consideration of the following factors:

Contracting services offered (e.g. residential, commercial)

Company property and equipment
Business income
Number of employees
Claims history
Policy details (e.g., coverage limits, deductibles)

Get the Right Coverage

Without an adequate contractors insurance portfolio, your business could be at risk of devastating out-of-pocket costs for even a single accident or error. The agents at General Insurance Services of Asheville Inc. have over 50 years of experience helping contractors and businesses assess and address their coverage needs. Contact us today to get started.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.

Contractors Insurance

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