You should also consider how you’re going to run your business. Contractor’s insurance covers problems typically associated with the risks of construction and renovation projects, including risks to your employees, your work site, and anyone or any equipment involved. From there, what coverage is needed depends on the work that you do.
Getting a job done takes more than human expertise and a keen eye for detail—you need to have the right tools for the job, or it’s probably not going to be finished. While most contractors may not have to commute to numerous locations each day, it’s common for them to drive several times each week depending upon their work schedules. Because every accident, incident, and act of nature is an opportunity for a lawsuit or monetary loss that could bring down everything you have worked so hard to build. Whether you’re a general contractor, subcontractor, or construction business owner, your investment is at risk.
Luckily, you can easily defend your construction business with the right insurance coverage. Use this checklist to find the contractor insurance policies that you simply can’t afford to ignore. In today’s litigious society, any small accident or incident could result in a lawsuit. General liability protects you from third-party lawsuits in the event someone has experienced injury, bodily damage, or property damage as a result of your business. The equipment you invest in doesn’t stay in one spot
As you move your tools and mobile equipment from one project site to the next, the risk for damage or loss increases. When you or one of your employees is in an auto accident while driving for work, you need more than a personal auto policy to cover it. Because insurance companies normally will not pay you more than your car’s book value, it is helpful if you have a rough idea of this amount. Remember, tools and equipment are not covered in a commercial auto policy, so be sure to protect your valuable tools with an inland marine policy. Depending on the situation, you might have to cover your contractors, or they might have to purchase their own contractor insurance. To start with, examine your legal obligations to the client. For this article, we’ll assume that’s the situation and you need to make sure each contractor is covered by a suitable policy. Check your contracts to see which kinds of business liability insurance you and your contractors are required to have. When you’re the managing contractor on a project, you’ll have to make sure that subcontractors have adequate business insurance. If your contractor doesn’t have their own insurance (or can’t afford it), adding them as an additional insured often makes a lot of sense. Avoiding accidents is not promised to you or anyone else.