Contractors Insurance

As a contractor, your business must account for many risks and exposures amid its daily operations. Given the many perils of the construction industry, including job sites with heavy machinery, sharp objects, flammable materials and motor vehicles, thorough risk management and loss control measures are essential. Furthermore, your business is likely beholden to stringent deadlines and expectations. As such, even a single accident or error could cause extensive delays or damages and lead to significant financial losses. That’s why contractors insurance is a critical investment.

What Types of Coverage Are Typically Included in Contractors Insurance?

Although some insurance companies may specialize in providing contractors insurance packages that address many of your risks and exposures, you may need to assemble your own insurance portfolio from various individual policies. Regardless of how your firm acquires its contractors insurance, you should generally prioritize the following:

• Errors and omissions insurance—This coverage, also known as professional liability insurance, can help insulate your business from losses if a client files a lawsuit alleging that your services were incomplete, late, negligent or otherwise failed to fulfill your contractual obligations.
• Commercial property insurance—By including this coverage in your insurance portfolio, you may be able to recoup losses involving your company’s physical property, including your business’s premises, furniture, equipment, tools and inventory.
• General liability insurance—If you are at fault for an incident that affected a third party, such as bodily injuries, property damage or personal and advertising injuries, this coverage can help pay for resulting losses.
• Builder’s risk insurance—This coverage provides financial protection for buildings that are currently under construction, including those under renovation.
• Workers’ compensation insurance—If your employees are injured on the job or develop work-related illnesses, this coverage can help pay for their medical expenses and lost income and for resulting legal costs.
• Commercial auto insurance—This coverage can provide financial security if your company owns motor vehicles by helping to pay for repair or replacement costs, or third-party losses for which you are liable.
• Inland marine insurance—This coverage can financially protect materials or equipment if you store or transport them off-site.
• Commercial umbrella insurance—This secondary form of coverage can render additional financial aid if the policy limits of other liability insurance have been reached.

How Does Contractor Liability Insurance Protect Against Claims of Property Damage or Bodily Injury?

The following forms of insurance may play a role in financially protecting your company if you are at fault for another party’s bodily injuries or property damage:

• General liability insurance can help pay for medical bills or property damage if you are responsible for the losses of a third party, such as a passerby, neighbor or guest, and it can help cover the associated legal costs of these claims
• Commercial auto insurance can provide financial protection if your motor vehicles are involved in an accident with another party and your business is at fault.
• Commercial umbrella insurance can offer an additional layer of financial assistance if an incident for which you are liable exceeds your other liability policies’ coverage limits.

Are There Specific Insurance Requirements for Contractors Working on Government Projects or Contracts?

Contractors may be beholden to several legal requirements regarding their insurance portfolios. The Federal Acquisition Regulations typically require you to have errors and omissions insurance if you are working on a government project. Furthermore, employers are generally required to carry workers’ compensation insurance and must also adhere to commercial auto liability coverage requirements. Your business should consult with a qualified insurance professional to ensure you are in compliance with all legal obligations.

We’re Here to Help

For over 20 years, the dedicated professionals at Erick Dodge Insurance Agency have devoted themselves to helping individuals, families and businesses acquire and maintain optimal coverage. Our agents will draw on this extensive knowledge and experience to build a contractors insurance portfolio capable of helping secure your finances and future. Contact us today to get started.