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A well-established contracting business is both valuable and profitable. However, accidents happen, and these events are extremely bad for unprotected contractors. Contractors insurance is critical for contractors to operate at their best without any worry.
This article will discuss contractor liability insurance and how it will help these types of businesses.
What is Contractors Insurance?
Contracting businesses face unique risks.
While you generally won’t survive in the contracting business if you are rash, accidents happen, especially in workplaces that deal with heavy machinery and building equipment. Without contractor’s insurance, the expenses that will come as compensation, repair, or settlement will come from your own pocket.
Contractors will also frequently travel to their workplaces, and accidents happen very frequently on the road. Even a minor incident with other vehicles can be financially damaging, especially for small businesses.
Contractors liability insurance ensures that you won’t have to bear the full burden of any accidents that might be attributed to your contracting business.
If you own a contracting firm of any kind, contractors’ insurance is critical for you.
Do I Need Contractors Insurance?
You need contractors insurance if you own or operate a contracting business. Contracting businesses enter into a formal agreement with a client to create something based on the company’s services.
This range includes:
- Building contractors
- General contractors
- HVAC contractors
We’ll discuss some of these in further detail in other articles, so if you’re looking for something more specific, be sure to check those out.
Contractor Liability Insurance Coverage
Contractors face many unique risks in performing their tasks, such as property damage or third-party injuries. Contractor liability insurance can protect your contracting company from the costs of accidents such as these, but it doesn’t protect you from everything.
Thus, you need to know what contractor liability covers so that you can perform your tasks at your best.
General Liability Insurance
Contractors insurance includes general liability insurance.
Contractors usually do their work on-site and work in hazardous places with heavy tools. Everyone is encouraged to be careful, but the clients might hold you liable for damages and injuries when accidents happen.
General liability insurance will answer the financial requirements of such events. This policy under your contractor’s liability include:
- Bodily injury. This type of insurance will cover cases where you are held liable for a client’s injury. The coverage includes medical treatments and the like.
- Property damage. If a client holds you accountable for property damage caused by an accident in your work area, general liability will help you pay for the cost of repairs and replacement of the damaged property.
- Settlements. In the event of a covered incident, your client might want to settle the matter out of court. You can draw from this coverage for settlement fees of your incident.
- Legal costs. Should the complainant bring the case to court, this type of liability insurance will also make sure that you won’t have to pay anything for mounting your legal defense. Judgments such as in-court settlement and punitive fees are also included in the coverage.
Commercial Property Insurance
Contractors’ insurance will also contain commercial property insurance to some degree. This type of policy covers everything that you use for your business practice, such as:
- Office supplies, etc.
The previous items are covered regardless of whether they are owned or leased.
Business Income Insurance
When an incident or complaint causes you to miss business days, contractors’ insurance will also help cover the cost of lost income. This can include:
- Rent or mortgages
- Loan payments
You can also request your provider to include additional coverages under your contractor’s insurance. These add-on policies can consist of:
- Commercial vehicle insurance
- Inland marine coverage
- Cyber liability coverage, etc.
How Much Does Contractor Liability Insurance Cost
The price of your contractor’s insurance premiums will vary depending on several aspects of your coverage. Factors such as the following will affect calculations of your premium:
- Business location
- Business size
- Additional coverages
- Claims history
Getting Contractors Insurance with Magnum Insurance
Whatever the task, clients expect contractors to create the best outputs in the shortest time possible, with the least amount of resources used.
You need to perform at your best in the shortest time possible with the full knowledge that should something unfortunate happen, your business is insured with independent contractor liability insurance.
Get a quote today by calling us here at Magnum Insurance!
Magnum Insurance makes Contractors Insurance easy
Insurance should be easy, and with Magnum Insurance, it is. Get your online insurance done at your convenience now!
Flexible payment options including cash. Call, visit a store, or make a payment online by logging into your account.
Manage your policy. File and track a claim. Do it all with a few taps on your smartphone.
No one likes to file or manage a claim. That’s why we make the process easy with online forms and dedicated agents.
Get a free Contractors Insurance quote today
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