You have everything invested in your contracting business and you need to make sure that investment is fully protected. This is especially important for small contractors because one disaster could spell the end of your livelihood. It only takes an accidental injury or a sudden severe storm to cause you major problems, and even though you may not be able to avoid some disasters, you can at least plan for them with the right kind of insurance coverage. It can mean the difference between prosperity and poverty and here is an example.
Jared is a successful roofing contractor and has customers all over Southeastern Wisconsin. In fact, his business has been growing so much he had to hire more workers, and he had roofing jobs lined up for several weeks at a time. However, one day while replacing the roof on a home, a worker accidentally slipped and fell off the roof, landing on the homeowner below. This created a double whammy because the employee required medical treatment and the homeowner suffered severe neck and back injuries.
Jared knew there were some difficult times ahead but he was not overly concerned. You see, Jared had the foresight to use a trusted local independent insurance agent with many years of experience. The agent was able to get Jared a comprehensive policy that covered all his needs. When the claims added up, they were all taken care of by the insurance company, and Jared was able to stay in business. Eventually, the employee returned to work and the homeowner made a complete recovery. However, without the right business insurance for contractors, Jared and his entire crew could have been out on the street.
Defining Contractor Insurance
A contractor policy is specially designed to cover the needs of today’s contractors. While contractors most likely have a shop that they report to every day, the work that they do is not at their location and is short term usually spelled out in a written contract or agreement with their customer.
Who Needs This Kind of Insurance?
Any kind of contractor should have special coverage, and this includes:
- Electrician services
- HVAC companies
- Handyman services
- Painting services
- Roofing contractors
- Excavation services
- Septic and sewer companies
- Construction companies
- Any company that utilizes subcontractor work
Is There a Standard Contractors Insurance Policy I Can Buy?
Your business is unique and so are your insurance needs. However, basic coverage should include:
- General liability insurance – this will cover personal injury claims, and damages resulting from your business operations.
- Property insurance – protects your office or building and its contents from damages and theft.
- Commercial vehicle insurance – this is like personal auto insurance, except it protects your vehicles, and fleet of vehicles.
- Equipment insurance – covers damages to your heavy equipment
Contractor Insurance Options
You might need a number of coverage options, such as:
- Extra liability insurance – this is important for companies with large equipment or contract requirements that expect higher limits of coverage.
- Surety bonds – there are several kinds of bonds you may need. For example, a bid bond guarantees you will take the job if you are the successful bidder. You also may need payment bonds, to guarantee your suppliers and subcontractors will receive payment.
- Worker Compensation – your employees must be protected by workers compensation insurance. This will take care of their needs if they are injured while working for you. This insurance will pay for medical bills and lost income while the injured employee is unable to perform his or her work duties.
- Builders risk insurance – this may not be included in a standard contractors insurance policy and it is very important for any company in the construction business. Builders risk covers your work while it is still in the construction phase. For example, you and your crew are building a house and are half way finished with the job. One night a huge wind storm severely damages your building and you have to start the project all over again. Your builders risk insurance covers issues like these.
- Hired/Non-Owned Auto – if your employees need to drive their own vehicles while working for you, you will need employer non owned liability coverage to protect them and your business.
Getting the Right Coverage for Your Business
If you want to get the best coverage with the least amount of effort, consider the many benefits of an independent insurance agent from American Advantage – Petersen Group. We are there to make it as easy on you as possible. Our insurance experts routinely do business with many of the best insurance companies in the industry, and we find you the best deals possible. This gives you maximum coverage with minimal premiums.
Why spend all your time insurance shopping when you don’t have to? Your independent agent is there to give you coverage customized for your business and business property. We will find you the right property insurance, commercial auto insurance, and business insurance. There’s no need to check out all of these coverage options separately, when your agent can take care of everything for you.
Don’t take unnecessary chances with your business, contact an insurance professional at American Advantage – Petersen Group in New Berlin, Wisconsin today. Call us at 262-432-0789 for more information or fill out the free insurance quote form and we’ll get back to you.