When you work as a general or artisan contractor, protecting your business with the right insurance is critical. Accidents, property damage, and unexpected setbacks can happen at any job site. Having the right coverage helps you manage these risks and keep your business moving forward. Below are key insurance coverages that contractors should strongly consider:
General Liability Insurance
General liability insurance is a must-have. It covers claims from third parties for bodily injury, property damage, or personal injury caused by your work. If someone gets hurt or something gets damaged because of your operations, this policy steps in. It can pay for medical bills, legal fees, and court-ordered judgments. Contractors face many potential hazards on job sites, making this coverage essential.
Commercial Property Insurance
Protect your equipment, tools, and materials with commercial property insurance. This policy covers physical assets used in your business. It helps you recover if fire, theft, vandalism, or a natural disaster damages your property. Whether you store items in a warehouse, office, or vehicle, this coverage keeps you from paying out of pocket to repair or replace them.
Builder’s Risk Insurance
Builder’s risk insurance covers structures under construction. It also protects building materials and equipment while on-site. If a storm damages a half-built project or thieves steal your tools, this policy can help you recover financially. It’s especially important for contractors who handle new construction or major renovation work.
Professional Liability Insurance
Also known as errors and omissions insurance (E&O), this coverage protects contractors who provide design, advice, or consulting services. If a client claims your work caused them a financial loss due to a mistake or oversight, this policy can help. It covers legal fees, settlements, and judgments tied to professional errors.
Workers’ Compensation Insurance
If your business has employees, you need workers’ compensation insurance. This coverage pays for medical expenses, rehabilitation, and lost wages if a worker gets injured or becomes ill on the job. Most states require it by law. It also protects your business from lawsuits related to workplace injuries.
Commercial Auto Insurance
Use vehicles for work? You need commercial auto insurance. This policy covers company-owned trucks, vans, or cars used in your business. It protects against damages or injuries caused by accidents involving those vehicles. If employees use personal vehicles for business tasks, make sure your policy includes hired and non-owned auto coverage.
Umbrella Insurance
An umbrella policy adds an extra layer of protection. It kicks in when the cost of a claim exceeds the limits of your other liability policies. This type of insurance is vital for businesses facing higher risks or working on large projects. It helps protect your assets and reputation if a major claim arises.