The contractor’s insurance protects your construction company from several risks, such as lawsuits, workplace accidents, and equipment damage. You may be required to obtain this coverage by law or by the employer who hired you.
To protect against these numerous perils, contractors often need several commercial insurance plans, usually available from the same insurance provider.
The price of contractor insurance
The coverage you need to ensure your business will affect insurance rates. General liability insurance, commercial property insurance, workers’ compensation, and contractors’ package policies are appropriate for independent contractors.
Independent contractor insurance is often less expensive than you might think. Commercial insurance rates vary depending on your line of employment, company size, and location.
The perils your organization faces can also affect rates. Your policy limits are a crucial factor in determining your insurance rate. The maximum amount an insurance company will cover a loss is called the limits of liability.
Your policy limits are entirely up to you; if your line of work is considered low risk, you may feel comfortable selecting a lower liability limit. Your insurance will also cost less if you do so.
By designing a liability policy unique to you and the company, you can ensure that you only spend what is truly necessary.
Insurance Pricing
Most independent contractors, especially those in the construction industry, need liability insurance. Since much of their employment involves risks that a general liability policy can cover, this product is appropriate for independent contractors.
This liability policy is appropriate for contractors because they visit construction sites and deal with customers face-to-face.
When you have a physically demanding job, general liability insurance can protect you from numerous typical problems, such as property damage and bodily injury to others.
Fortunately, insurance pays off. Many small businesses expect to pay between $400 and $600 annually. For context, a slip-and-fall injury to a customer typically costs $20,000. If an accident occurs, just $35 a month could help you along with your business.
Commercial Property Insurance
Whatever the trade, it’s essential to have tools and equipment to get the jobs done. Perhaps you use high-quality power tool sets or efficient thermal imagers.
Whether the preferred tool is a self-leveling cross-line laser or a state-of-the-art wall sander doesn’t matter. Independent contractor tools are not cheap, that’s for sure.
You won’t be able to complete the task you’re working on if your tools are stolen or damaged. You may not be able to complete your job without the proper tools, which could result in you not getting paid.
Coverage offered by contractor’s insurance
General liability is usually covered by basic contractor’s insurance policies, which include:
Bodily injury
The insurance covers an injury sustained by an employee, a customer, or a third party while performing services in your business or on a customer’s property. For example, a customer falls on tools while you are working.
Medical payments
Insurance covers treatment expenses related to injury claims. For example, a client who has been injured while you were working on the property needs surgery.
Property damage
When the client’s home is damaged while you are providing the service, they may retaliate and proceed with a claim for the problem. In this situation, the insurance will be the one to respond to the claim.
Advertising Liability
You may be liable for libel, slander, or defamation if a business or other entity suffers a financial loss due to a misleading advertisement. An example of this would be giving a false description of a rival in an ad.
Your coverage will vary depending on your package and its specified limits. To fill in the gaps, you should do a policy review to understand the coverage and purchase specialized insurance.