Whether you’re a small business owner or sole contractor, you know that your business is essential. After all, it’s your livelihood and how you put food on the table for your family. Business ownership is a huge responsibility. Thankfully, there is contractor insurance available to help protect everything from your company’s physical assets to the value of your work as an independent contractor. However, finding the right policy and understanding what you need can be difficult.
More than 25% of contractors in this country don’t have the proper insurance coverage to protect them from many unforeseen circumstances. This article will take you through multiple factors and aspects you must know about business insurance for contractors.
Understanding Insurance Requirements For A Building Contractor:
Building contractors are a specialized category of tradesmen that carry out construction projects for clients. They usually work for private individuals and businesses rather than the government or local councils. They may also carry out maintenance work, meaning their insurance needs will differ from those of other tradesmen.
Building contractor insurance is designed to protect building contractors against losses caused by accidents on site and claims for damage to property and injury to third parties. It also covers them for liability issues arising from the use of subcontractors on site.
In addition, building contractors need public liability insurance to protect themselves against claims made by third parties injured or suffered property damage due to work carried out by your business. Public liability insurance covers you against claims made by clients or members of the public who have been injured in some way as a result of work done by your business. It covers everything from personal injury to property damage caused by faulty construction or materials used during a project carried out by your company.
What Is All Covered Under Insurance Policy For Contractors?
- Building: Covers losses due to fire or other covered causes that damage the physical structure of your building(s). The policy typically covers the cost of repairing or rebuilding damaged structures. The policy may also cover your inventory and equipment at replacement cost value inside a building.
- Business Interruption: Covers business income lost because of property damage to your place of business due to a covered cause of loss, such as fire or windstorm.
- Liability Protection: Provides liability coverage for bodily injury or property damage caused by negligence related to your work as a construction contractor, including injuries suffered by your employees while working on site.
- Inland Marine: Helps protect against theft and damage to tools, equipment, and materials used in construction projects. In addition, it covers vehicles used in construction projects for transporting tools or materials from job site locations if they are equipped with special equipment designed specifically for moving heavy objects like cranes, forklifts, etc.
Building contractor insurance is designed to cover the wide variety of issues that can arise during building construction. Not only will your project be covered for any potential damages, but the liability of your work team is also protected. Because no construction project is risk-free, you will likely find it helpful to have this type of insurance in place during (and after) each step of the building process.