Do you have the right contractors insurance?

What you could need on your contractors insurance.

Running a business is hard.  You have to worry about bidding jobs, payroll, and obtaining new clients.  Worrying about your insurance coverage is usually not at the top of the list of priorities.  What do you need from you insurance though?  There are many options available to you for insurance as a contractor.  One of the main coverages that a contractor needs is general liability coverage.  General Liability coverage is there to cover bodily injury and property damage that you are liable for.  One important thing to keep in mind though is that in most cases general liability coverage will not cover faulty craftsmanship.  This coverage is for things like dropping a tool on the floor or causing a slip and fall.  Another coverage closely related to general liability is voluntary property damage coverage.  This coverage provides insurance for unintentional damage to property of others caused by the insured while property is in the care, custody, and control of the insured.  This coverage is typically not in the standard insurance policy and must be added by endorsement.  This coverage is very important for contractors and is something that a contractor should have. 

 

Another issue for contractors, what would you do if you were to lose all your tools?  How much would it cost you to replace them?  An inland marine policy can help put you whole again.  An inland marine policy is a policy that covers your tools and equipment away from the shop.  This policy is written on an actual cash value form so it is important to review it every year.  Another issue to look for is whether your inland marine policy, if you do have one, is a blanket or a schedule.  A blanket form typically carriers a per piece limit, that limit is typically 1000 or 2000 dollars per tool.  This could leave you upside down in the event of a claim.  Also of note is that blankets typically exclude mobile equipment like mini excavators. 

 

Finally have you ever had to sit on a job site because you were waiting on a certificate or the correct language on a certificate?  When dealing with commercial insurance it’s important to make sure your company has the endorsements you need on your policy or has the ability to add them.  Working with an agent who writes commercial insurance regularly can help insure that you have all the additional insured and waiver of subrogation forms that you need to bid on jobs and get paid on those jobs.  We would be happy to help review and quote your commercial insurance for you.  Let us be the experts that you can count on.