Contractors insurance is critical for anyone working in the industry. The problem with standard insurance policies is that every contracting business is unique. This means you have specific needs that aren’t shared by all in the industry – or any other industry for that matter. Whether you’re a general contractor or a specialist, you’ll find that getting the right policy to protect your business will help you sleep better at night.
What Kind of Coverage do You Need?
While your individual and specific coverage will vary according to the specific types of tasks you perform, New Jersey, Pennsylvania, or Florida legal requirements, and your own personal level of risk aversion, you will find that a few coverage types are essential – aside from your standard business owner’s policy. This includes things like the following:
Commercial Auto Insurance
If you’re like most contractors you live and work by your work vehicles. This is where you keep all your equipment for the various jobsites and is your mobile headquarters when taking care of jobs on the go.
Whether it’s a panel van or a heavy duty truck, if you’re in an accident you might find more than your vehicle out of commission.
The right business auto policy will help you replace broken or damaged equipment in addition to making necessary vehicle repairs, medical payments, and provide an acceptable amount of liability protection.
If you have employees who work out of their own vehicles on behalf of your business, you might want to consider a non-owned vehicle liability policy to provide additional liability protection for your business.
Contractors Equipment Coverage
This insurance helps to serve as a floater policy to protect your equipment in various circumstances – including theft, fire, and even breakage.
Independent Contractors Liability Insurance
While it is probably that you make every effort to be safe and thorough in all your job duties, mistakes and accidents happen all the time. Even when they don’t, you may be falsely accused of recklessness or negligence. The problem is that defending yourself is costly even if you are ultimately vindicated and relieved of responsibility you may still face crippling legal fees and if you’re found culpable may have even bigger expenses on your hand. Liability insurance helps you with your legal fees, settlements, and judgments awarded against your contractor business.
Who Needs Contractors Insurance?
The needs of contractors insurance isn’t limited to larger contracting companies. In fact, the small businesses are often the ones who have the most to lose without effective coverage. Anyone who provides the following services should consider investing in contractors insurance as an investment in their business and financial security:
- Electrical contractors
- HVAC contractors
- Vinyl siding contractors
Of course this list is by no means exhaustive, but serves as an indication of the types of contracting businesses that can benefit from having insurance for contractors.
Of course it almost always comes down to the question of how much is it going to cost? Because there are so many differences from one contracting business to the next, the costs are not one size fits all.
One thing you can do to insure you’re getting the best possible price on your insurance is to work with an independent insurance agency, like the Frank P. Licato Agency LLC in South Plainfield, NJ. We can get multiple quotes from different insurers to find the right coverage at the right price to protect your business best.