Commercial Insurance For Contractors—What Kind Of Coverage Do You Need?
Working as a contractor can mean your business model looks quite different than many others. Your services occur in different locations, your equipment can vary, and even your types of commercial insurance needs can be different. Take a look at some of the types of coverage you may need as a contractor.
General Liability Coverage for Contractors
General liability insurance for contractors is designed to cover the costs if you accidentally cause damage to another party while performing work-related tasks. For example, if you are removing a tree for a customer and a limb falls and breaks a window, general liability coverage will likely cover the costs of repairs. Most clients will ask for proof of this type of coverage before allowing you to work on their property.
If you have a physical storefront or location where you keep your tools and components associated with your business, it is important to have commercial property insurance. In the event of theft, fire, or other occurrences at your business property, you won't be facing significant losses. For example, if your tools are stolen from your business property, your property insurance may pay to replace them.
Operations Insurance for Contractors
Operations insurance is a separate type of commercial insurance that covers you if something goes wrong after you have completed a project. For example, if you build a deck for a customer and the deck falls apart after completion, this would fall under the umbrella of operations insurance coverage. Simply letting a client know that you have this coverage can be a good selling point because you can clearly guarantee your work will either stay in good condition for a period of time or be replaced.
Equipment Insurance Coverage
The equipment that you use in your contracting business also needs insurance protection. As a contractor, your equipment can spend a lot of time on the go and on property that does not necessarily belong to you but to your customers. If your box tools or a piece of equipment is stolen, the equipment insurance policy may pay for the replacement.
Commercial Automobile Insurance
The vehicle you drive while on the job may need a separate kind of auto insurance than your traditional policy. Because this vehicle is used in a business scenario, additional coverages can be recommended. For example, if you back into a customer's vehicle while leaving a job site, commercial auto insurance will cover the costs of damages caused to the other individual.
Contact a local commercial insurance service to learn more.