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If you’ve ever hired a contractor, you’ve probably checked to see if they were bonded or insured to protect yourself. Contractors are people, too, and can make mistakes—sometimes costly ones. For example, a roofer may drop a shingle that lands on your car, causing thousands of dollars in damage. If the roofer doesn’t have adequate insurance, the customer is the one who has to pay for it.
Contractor’s insurance closes the gap when things don’t go the way they should. Most of the time, you won’t even know you have it, and that’s a good thing. But when something goes wrong, your insurance coverage will protect you. Of course, you have to purchase contractor’s insurance before you need it, ideally before you start work for your first customer.
Contractor’s insurance offers protection from various things. The biggest portion is liability. If you unintentionally damage someone’s property or cause physical harm, your liability insurance will serve as a shield against their claim. It can take the pressure off financially, because the customer gets reimbursed without you having to empty your savings or sell your home.
In your business, you’re used to moving from job to job. When one job is finished, you move on to the next. But even after you’ve received payment for your services and started work on the next project, your liability continues, often for years. A customer can demand compensation for accidents or faults caused by work you have performed for them. Having insurance protection in place means you don’t have to worry about potential claims or lawsuits.
If you work as a contractor in a trade of any kind, you probably need insurance. A roofer may have an obvious need for liability insurance, but even carpenters need it. The requirement of having liability insurance has nothing to do with your quality of work. After all, people can make legal claims, even if they’re not justified. Without insurance, you’re stuck paying legal bills alone.
Here is a list of trade examples who need contractor insurance:
This is not an exclusive list of professions who may require insurance. A traveling hair stylist could use liability insurance, too. Please don’t hesitate to contact us if you have any questions about obtaining insurance coverage for your business.
You probably have a lot of questions about obtaining the right insurance policy for your business. We have put together the most common questions and answers below. However, we know that there’s no one-size-fits-all solution for your insurance needs. Contact us today to let us put together the best insurance coverage for you.
How Much Does a Contractor's Insurance Cost?You may be worried about the cost of insurance, even though it’s vital for your business. Without knowing your business, we can’t give you an exact quote. However, we promise that with our custom policy, you only pay for the coverage you actually need and not a dime more.
Are You Legally Required to Carry Contractor’s General Liability Insurance?Maybe. It really depends on what trade you’re in. Liability insurance isn’t legally required for contractors in most states. However, if you work in a profession that requires licensing, proof of insurance coverage may be required to get the state license for your job. We recommend talking to your local chamber of commerce to verify this for your situation.
What’s Covered with Contractor’s Insurance?Your contractor’s insurance includes a liability portion. It can cover your truck or other commercial vehicles. You can even add insurance coverage for any property in transit, including a trailer, tools, and inventory. If you have employees, you’ll need workers’ compensation insurance. And certain professions, such as accountants, need errors and omissions’ insurance. Talk to us today about your business, and we’ll make sure we cover all your insurance needs under one contractor policy.
Our goal is to create a policy that’s right for you. We work with lots of different insurance companies, allowing us to get you the right coverage at the lowest cost. We can put together a customized policy to protect your contractor business. Call us today for more information.