Every business is unique and faces different risks and liabilities. Even when two contractors share the same profession and are similarly sized, insurance needs can vary widely. For almost all contractors, a general liability policy makes sense. It provides protection from events that often present the biggest risks for contractors. However, most contractors can benefit from additional insurance that protects them from common liabilities not covered under a general liability policy.
General Liability Insurance
General Liability is almost always the first type of insurance for a business. Since this policy is usually the foundation for all other protections you might need, there is a lot to consider! Because of that we have a separate article covering the details of General Liability Insurance.
Property In Transit Insurance (Inland Marine Insurance)
Property in Transit or Inland Marine insurance covers property while it is in transit. Initially covering goods over water, inland marine insurance has expanded to cover goods in transit on land as well. For contractors with fleet vehicles or using heavy equipment, this can be particularly valuable.
Business Auto Insurance
While most of us are familiar with personal auto insurance, business auto insurance provides coverage that is not usually included with personal policies. In its most basic form, business auto insurance covers injuries of other people that you or your employees may have caused as well as damaged caused to the people’s property.
Worker’s Compensation Insurance
Worker’s Compensation insurance is designed to protect both the employee and employer in the event of a work place accident. Every state has different guidelines and requirements when it comes to worker’s compensation insurance and how much is required. Common worker’s compensation claims include slips and falls, injuries caused by repetitive actions, accidents while operating machinery and strains put on the body while lifting heavy objects.
Errors and Omissions Insurance
Errors and Omissions Insurance or E&O Insurance for short is a type of specialized liability insurance that helps protect you and your business when a customer sues for claims of negligence, errors, or omissions committed while conducting business with your company that resulted in a financial loss. Things like if a plumbing repair fails causing an overnight flood or if concrete never sets properly due to defective materials purchased. Errors and Omissions Insurance can help cover the costs caused by these kind of incidents.
Umbrella Liability Insurance
Umbrella insurance for contractors is used to increase coverage of other policies such as your company’s general liability or business auto policies. Most contractors who purchase umbrella insurance do so to fulfill contract requirements that require higher than standard policy limits.
Contractors Equipment Insurance
While the tools don’t make the contractor, they are often required to complete the work in a timely manner and most contractors have a small fortune invested in tools and equipment. A contractors equipment insurance policy protects expensive tools and machinery against damage while on the job. Common tools included those used in construction, landscaping, and engineering, such as compressors, saws, meters, and other portable equipment.
Installation Insurance
For contractors who regularly install expensive items, contractors installation insurance is used to cover financial reprocussions when an item to be installed is damaged. As an example, imagine your contracting business is remodeling a kitchen and the customer has chosen an expensive piece of granite for the counter top. If one of your employees accidentally drops the granite while carrying it on the job site causing a large crack, contractors installation insurance can helps cover the costs associated.
Cyber (Data Breach)
An increasing need for contractors is Cyber or Data Breach coverage. Many contractors store sensitive information about their employees and customers including Social Security numbers, payment details and other personally identifiable information. In the event of a data breach, contractor cyber insurance can help with costs arising from notifying affected individuals, managing public relations and good faith advertising.
