6 types of insurance for contractors you should know

There are plenty of benefits that come with being a contractor. For one, your schedule is so much more flexible than if you were an employee. The money is also good most of the time. But being a contractor also means a lot of responsibilities. As a contractor, you have to be accountable for everything that happens in the areas where your team works. Anything that goes wrong on a project site from physical injuries to property damage, and a contractor will most likely be sued for claims by concerned parties. 

These claims often make quite an impact on a contractor’s finances once granted, that is, if they have no contractor’s insurance of any kind. In fact, countless contractors have been left with no choice but to close down their business after paying for such claims from their pocket.

That’s why many contractors take the smartest path, and that’s taking out at least one type of insurance for contractors to protect their business. With the right insurance policy giving them coverage, contractors have one less thing to worry about when it comes to running their business.

Here are some of the types of business insurance that are available to contractors today:

Commercial General Liability Insurance
When someone gets hurt or some property gets damaged on a work site, the contractor will always be held liable for them. Third parties can file a claim, and they will most likely pay. If they have a commercial general liability insurance policy, they will be covered up to a certain amount as stated in the policy. Any legal expenses incurred while the claims are being heard in court will also be covered by commercial general liability insurance.

Builders Risk Insurance
Builders risk insurance covers materials, tools, and equipment used in a construction project. Typically provided along with general liability insurance, builders risk insurance protects builders and contractors in case said materials, tools, and equipment are lost, stolen, or damaged the construction work is ongoing. Sub-contractors and equipment owners who are involved in the project can benefit greatly from this type of contractor’s insurance.

Automobile Liability Insurance
Trucks and other types of vehicles play a crucial role in any construction project, as they are responsible for transporting material, equipment, and laborers to a work site. Should any of these vehicles get involved in an incident at the project site that results in physical injury, property damage, or death, the contractor who owns those vehicles will likely find themselves at the receiving end of claims from concerned parties. Automobile liability insurance provides them coverage for such claims, including legal expenses.

Contractors’ pollution insurance
Any construction site always has the potential to violate certain environmental laws due to its capacity to pollute a given area, and there is no shortage of third parties who are willing to file suit against any contractor caught breaching such laws. Many contractors choose to purchase contractors pollution insurance policies to protect their business from such claims.

Roofers Insurance
Roofing is widely considered as one of the riskiest contracting jobs out there. People could get hurt if a worker or a tool such as a hammer falls off the roof. The risk of property damage is also high, as a roofer, with one wrong step, could end up damaging parts of the roof that were otherwise in good condition.

A roofing contractor can protect himself or herself with roofers’ insurance, which is a type of general liability insurance. This type of insurance can take care of any physical injury or property damage claims made against a roofing contractor, as well as the legal costs that come with such claims.

Workers Compensation
Many types of insurance for contractors are mostly for the benefit of contractors themselves and the people who file claims. Workers’ compensation, however, covers a contractor’s employees as well. So, if they get injured, contract diseases, or lose their lives in the middle of a project, the worker will be compensated accordingly.

A typical workers compensation insurance policy covers medical treatment, rehabilitation costs, disability income, and compensation for the loved ones left behind by workers who died on the job. With workers compensation, contractors can also avoid being sued by employees who sustained injuries or by the families of deceased workers.

To protect themselves and their business, contractors must seriously consider getting any or all of the types of insurance enumerated above. Understandably, some contractors might think twice about getting contractors insurance because of the costs involved. But spending for insurance coverage is a much better option than having to pay for claims, some of which might be big enough to drain their finances and shut their business down for good.

Insurance for contractors gives them more than just the ability to pay for claims – it also gives them peace of mind.

More info available at http://affordablecontractorsinsurance.com.

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Rachel Porter is the content specialist at Custom Contractors Insurance. Since 2011, Custom Contractors Insurance has helped contractors of all kinds find affordable insurance across the country. Their goal is to provide a policy that will protect you, your business, and your clients at an affordable price. 

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