Contractors help build our country and play a vital role in the growth and development of our economy
Because of this, their economic impacts need to be insured, both for the interests of the contractor and for those that employ them. Let’s review some of the insurance that may help provide this protection.
Commercial General Liability
(CGL or GL)
The work you do is typically for others. If you have liability that arises from that work that results in damages to a third party – you may be sued. Having the right CGL coverage is critical to help protect your operations in these scenarios.
Workers’ Compensation
If you have employees, most states have some requirements in place for you to have work comp coverage to help protect them. There are many factors here as to when, how much, or for whom you have to carry this insurance, but keep in mind that the goal here is to protect those you are responsible for if they are injured on the job. Having good safety and risk management practices in place can help improve your chances of never having to use this insurance.
Builders Risk
This coverage is in place to help protect property while it is under construction. If you have damage from fire, theft, vandalism – typically including such damages to worksite tools and materials – this insurance may help respond to the loss. In addition, it may also help with residual impacts to income, interest, and taxes.
Equipment/Inland Marine
You likely have tools and equipment that you bring on site for projects. Some of this equipment, like generators, pumps, etc. may be more susceptible to impacts from weather, theft, and other perils. This coverage can help protect in these cases of loss, typically without concern for where it is located at the time.
Specialty Coverages
Depending on the work you perform, the size of your projects, and the scope of your business, there may be other coverage you need to consider. Some examples might include:
- Commercial Auto – coverage for business vehicles and their operation by employees
- Pollution and Environmental – coverage for damages and cleanup that results from the use of hazardous materials in the course of work
- Professional Liability – Sometimes call Errors & Omissions or just E&O, this coverage may help cover you if you, your employees, and possibly even your subcontractors have a performance error or mistake
- Completed Operations – If an issue with your work causes damage or harm after the job is completed, you may still be liable. This coverage may help address that liability
- Bonds – Some jobs may require certain bonds to be in place while you are contracted for the work, basically “guaranteeing” your performance of the job’s contract
Some insurance companies have developed specialty packages for specific types of risks based on contractors’ roles. For example, if you are a roofer, HVAC contractor, painter, electrician, plumber, or other tradesman – talk with your agents about these potential options.
Our agents can discuss your role as a contractor, the work you perform, and how it impacts the coverages you need. Give us a call and let’s get started!
