Are you covered if you faced one of these scenarios?
• A fire catches at your job site destroying $20,000 of supplies and $50,000 of equipment.
• A client sues you because they feel the advice you gave them led to an ineffective store design and less revenue.
• An employee visits a supplier for a job and crashes into a mini-van with a mother and two children.
• A client asks to see your Certificate of Insurance with $1,000,000 limits but you don’t have one and therefore lose the bid.
• An employee falls from a ladder at the job site and injures their back.
You’ve worked too hard and invested too much of your own money to let your business close its doors because of lawsuits and insurance claims. Each of the above scenarios could happen to your business and it’s imperative you protect yourself from scenarios like these. The following six insurance policies can help protect you and your business from financial loss and keep your business thriving.
As one of the most broad insurance policies a contractor can have General Liability Insurance is absolutely essential coverage for all general and subcontractors. GL policies can cover claims resulting from bodily injury to third parties, property damage of others and personal or advertising injury.
Consider this scenario: while using a scissor lift one of your employees leaves a tool unsecured and it crashes into the hood of another contractors truck. Your general liability would address the claims arising from this accident. Click here to learn more about General Liability Insurance for contractors.
Professional Liability (Errors & Omissions)
This insurance coverage protects architects, consultants and design build contractors from claims brought by clients for customer dissatisfaction arising on design flaws or failure to properly execute plans. Contractors who provide consulting service and give clients advice on the design or building process should secure professional liability coverage.
This policy can also cover you from negligent acts performed by you or one of your employees. If your framers did not double check the plans when framing an exterior wall and placed it three inches away from the correct location their negligence could bring rise to claims made by the client. Your client now has to spend more money to fix the problem and delay construction because of your negligence. In a scenario like this, professional liability insurance would address the resulting claims made.
Your tools and equipment are insured through an Inland Marine insurance policy. Inland Marine was designed to cover property in transit that moves from place to place. Because your tools and equipment are moved from job site to job site they fall under this type of coverage.
If your tools or equipment are damage during the course of construction you may be severely limited in your ability to do your job. Now not only must you replace your expensive equipment but you also may lose income from being unable to perform your duties without those tools. Therefore Inland Marine serves as a protection to keep your tools and equipment in working order.
Workers’ Compensation extends coverage to your employees who are injured on the job. Their medical expenses and payroll are covered by Workers’ Compensation. Due to the high risk nature of the construction industry employees who are injured on the job are likely to be hospitalized and face serious injuries. Workers’s Compensation Insurance serves to give you and your employees to peace of mind to work safely and effectively on the job site.
While this coverage is not specific to contractors it’s essential for contractors who require the use of vehicles to transport supplies and equipment as part of their scope of work. Tractors, cranes and excavators may need to be insured on your commercial auto policy. This policy is designed to address damages to others made by your vehicle or damages to the auto itself.
Properly insuring your business will keep operations running smoothly and is essential for getting bigger clients. The larger your project the more your clients will require certificate of insurance. Your employees are more likely to stay at your company knowing their covered for accidents and mistakes.
Are you a contractor looking to properly insure your business? Contact us at United Western Insurance Brokers to discuss coverage tailored to your business. Learn more here.