Posted by Jim on June 23, 2011
Contractors insurance is relatively easy to buy and can save you a lot of heartache if you ever cause injury or damage to someone in the course of your work. Every contractor should carry at least the bare minimum insurance coverage, and in many states it is required to obtain and maintain a contractor’s license. Whether you are a painter, carpenter, roofer or a general contractor, there are some important insurance policies to consider buying. Here are three contractors insurance policies that every contractor should have.
Commercial General Liability insurance covers you for physical damage or bodily injury you or your employees cause while in the course of your contracting work. If a painting contractor accidentally ruins a homeowner’s white carpet by tracking red paint on it, General Liability insurance will cover the cost to clean or replace the carpet. If wood from a contractor’s scaffolding falls and injures a pedestrian below, General Liability will cover that person’s medical bills.
Contractors’ tools go missing all the time. They are frequently stolen from trucks and job sties. Listing your tools on an Inland Marine policy will give you coverage for theft and damage. Miscellaneous tools can usually be covered together as a whole and given a per item limit like $2,000. Larger, more valuable items can be scheduled individually for their actual value.
Performing work as a contractor lends itself to employees being injured more frequently on the job than in white collar professions. There are a lot of ways to get hurt using tools like saws and nail guns, climbing on ladders, walking on roofs, and working with electrical wiring. If you have workers compensation, your employee’s sole remedy for their injuries is to file a claim under your workers compensation policy. If you use subcontractors to help you, it is important to make sure they have their own workers comp policy, and that they provide you with a certificate of insurance proving they have coverage. This will limit your exposure and reduce the number of claims filed on your policy.
Working as a contractor has its risks. Whether its covering injury or property damage you cause to someone else, the tools that help you do your job, or injuries your employees sustain while working, buying contractors insurance will protect your business at the time of a loss.
To learn more about contractors insurance, call us today at 888-971-6304.