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Types of Insurance For Contractors

Posted by Northface Construction  - Owner & Founder

To say that being a contractor is a lucrative profession would be an understatement of sorts. Many people do prosper once they shifted to contracting. Some have even hit the big time and are now undoubtedly wealthy thanks to all the contracts that have come their way.

However, being a contractor doesn’t mean instant fortune. It takes a lot of hard work for a person to have any measure of success in the world of contracting. There are also tons of responsibilities that you have to shoulder, including insurance, which could spell the difference between continuing your operations and shutting everything down.

As a contractor, you can expect to be the subject of lawsuits whenever physical injury or property damage takes place within your work area. In many cases, such claims have caused companies to dissolve because they had to pay for those claims out of pocket since they didn’t have the right insurance coverage.

Contractors definitely need insurance, and not just for cases of personal injury or property damage. Here are some types of insurance for contractors.

Commercial General Liability Insurance

When any physical injury or property damage occurs within a contractor’s work area, the affected party can file a claim against that contractor, who shouldn’t have to worry if he has commercial general liability insurance coverage.

Commercial general liability insurance will shoulder not only the amount being claimed against you but the legal expenses you have incurred as well.

Workers Compensation

Accidents do happen, and workers on any contracting project are typically at risk of getting injured at work. They could also get sick, and in some cases, perish during a project.

If the contractor is an employer who cares about his or her workers, getting workers compensation insurance for them would be of immense help.

A workers compensation insurance policy covers medical treatment, disability income, rehabilitation costs, and compensation for affected workers, or for the families of those who lose their lives while on duty. Workers compensation is also a way for a contractor to protect himself and the business from claims that may be filed by injured workers or the families of deceased employees.

Automobile liability insurance

Contractors use a wide range of vehicles to transport equipment, workers, and materials to a work site. If these vehicles get involved in accidents that cause bodily injury, property damage, or death, the owner of those vehicles may find himself at the receiving end of claims from third parties. With automobile liability insurance, a contractor can pay for any third party claims, as well as all legal costs.

Builders risk insurance

Often provided along with contractor’s general liability insurance, builders risk insurance protects builders and contractors from the loss of equipment due to neglect, theft, or damage. If you’re a sub-contractor for a construction project or you’re renting out equipment for it, then you can benefit immensely from this type of contractors insurance.

Contractors pollution insurance

Third parties can sue contractors if they violate environmental laws. To protect themselves from the fallout of such lawsuits, contractors need to have contractors pollution insurance, particularly when their business involves processes that could be construed as contributing to pollution.

Roofers insurance

Roofing often finds itself at the top of most “most dangerous jobs” lists, for obvious reasons. Working at such heights on a regular basis can do that. One wrong step and a worker could fall off and hurt anyone on the ground. One slippery tool and it could hit someone else on its way down. If any roofing accident hurts people or damages property, the contractor is liable to pay for them. A roofers insurance policy will guarantee that they won’t be paying for any claims out of pocket.

In a world where you can be sued for just about anything, it’s a smart move to protect yourself and your contracting business from such cases. While it’s true that you will have to pay for insurance premiums, spending money on them is a whole lot better than exhausting your resources to pay for the much more substantial cost of claims against you that a court may award. Contractors insurance is protection, and you need it if you want your business to continue operating without too many worries.


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