Because contractor work covers a wide range of projects, uses heavy machinery and expensive equipment, and can be dangerous at times, contractors need to secure contractor insurance before taking on any projects. However, one-size-fits-all policies can be clunky and expensive while most contractors need targeted, tailored policies that provide just the right amount of coverage.
For instance, general contractors, HVAC businesses, and electricians all need slightly different coverage options, despite all falling under that “contractor” umbrella. With different coverage options, contractors of all types can protect their assets, their businesses, their employees, and even their clients.
What Types Of Coverage Are Available?
When it comes to coverage options, Nesbit Insurance makes it easy to mix and match the policy features that fit into your business model. Here are a few popular coverage options to consider:
General Liability Insurance
Usually, general liability insurance is part of every contractor’s insurance package—no matter their specialty. This covers any instances of damage to a worksite or even injuries that may have happened during your project. Let’s say a customer is walking in the door and a piece of scaffolding falls and hits them on the shoulder. General liability coverage will take on the costs associated with any medical care or legal suits that follow.
Contractor’s Equipment Insurance
Any contractor knows just how devastating it can be to lose a piece of equipment. If something big and expensive stops working, it can upend contracts, delay timelines, and completely disrupt your business. With contractor’s equipment insurance, you can get a repair or replacement to prevent business downtime.
Workers’ Compensation Insurance
If one of your employees gets injured while at work, you’ll need robust workers’ compensation coverage. Because your general liability insurance doesn’t cover worker-related injuries, this is a separate add-on. Most clients—especially government clients—will require you to have this type of coverage before hiring your team.
While the above coverage types are common and important, there are many other components of contractor insurance such as inland marine coverage, commercial property insurance, builder’s risk coverage, business auto coverage, and equipment breakdown coverage.
Additional Security: Contractor Surety Bonds
Although surety bonds aren’t typically thought of as a form of “insurance,” they certainly act as one. At face value, surety bonds are meant to ensure that the work obligations are fulfilled while financial risks—on both sides—are reduced.
For contractors, surety bonds lock them into completing their side of the project while protecting those around the project like clients and subcontractors. For instance, payment bonds guarantee that suppliers and subcontractors will be paid for their contributions even if the contractor fails to complete the project.
Protect Your Business, Protect Your Livelihood
As a business owner, it is up to you to ensure that everyone and everything surrounding your projects are safe and covered if the worst-case scenario happens. Climbing ladders, working with specialized tools, and doing work in high-traffic areas can result in disaster even for the most careful of contractors. It’s part of life in the industry.
The best thing you can do to get ahead of these risks is secure proper insurance coverage. At Nesbit Insurance, we work with contractors all over the country, providing protection for the worst days of business. Our policies can be as intricate or as simple as your business needs, and you can count on them.
To figure out the types of coverage you should consider and get an idea of the costs associated with different policies, fill out our Contractor Insurance Quote Request. The process is simple, and the peace of mind is priceless.
