Protect your Business
A large, uninsured damages claim is every contractor’s worst nightmare. Whether it be a serious car accident on the way to a job or a hefty commercial liability claim, a large payout made from a contractor’s pocket can spell financial ruin. However, if adequately insured, a large claim doesn’t need to sound the death knell for your business. With contractor’s insurance, your business can quickly and easily settle such claims and get back to business as usual.
1. General Liability Insurance
General liability insurance is the most common type of insurance that contractors take out. Most general liability policies offer coverage for injuries and property damage sustained by clients during contracting works, but many also offer protection against defamation claims (for example, in advertising) and product liability.
This type of insurance is mandated by law for contractors in many states, but even if you live in a state where it is not required, you might find that you’ll need it anyway. Many clients often require contractors to have liability insurance before allowing them to commence jobs.
2. Commercial Auto Insurance
Like all drivers, contractors driving to, from, and around worksites are at risk of accidents that could result in costly injury or property damage claims. Most of us are familiar with the variety of auto insurance products available on the consumer market, but in all states, contractors must take out special commercial auto insurance.
In California, for example, all vehicles owned by a business must be covered by a commercial auto insurance policy with a minimum liability limit of $5,000 for property damage, $15,000 for bodily injury to one person, and $30,000 for bodily injury to more than one person. Personal cars driven for work purposes don’t have to be covered by commercial auto insurance, but ‘hired and non-owned’ auto insurance is highly recommended, as most personal auto insurance policies don’t cover business use.
3. Workers’ Compensation Insurance
If your contracting business has employees, workers’ compensation is critical to ensure your staff is covered in the event of an accident that occurs on the job. Without workers’ compensation insurance, your business could be up for tens of thousands of dollars in medical bills, disability income, and legal fees.
Workers’ compensation cover is mandated by law in almost all states, even if your business only has one employee. In California, for example, all employers – even those not headquartered in the state – must take out a policy that covers medical expenses, disability benefits, vocational training (in the event an injured employee cannot return to the same workplace), and death benefits.
No two contracting businesses are exactly the same, and your insurance needs are just as unique. To keep your business safe from whatever life might throw your way, it’s essential that you thoroughly understand your risks and how to protect against them. For tailored insurance solutions that fit your specific business needs, call ISU Armac Insurance Services today. Our experienced staff will help you find the best insurance coverage on the market at competitive rates.