Contractors insurance is one of the most versatile and robust insurance programs you can buy into. However, you’re doing a lot more than buying just one policy that will handle everything. You purchase several smaller policies that all work together to protect your business.
Take a look at the three coverages every contractor should carry, recognizing, of course, that these policies are far more complex than they seem.
What is Commercial General Liability?
Commercial general liability insurance protects your business from claims of:
- Injury
- Illness
- Property damage
Basically, a general liability policy is used to pay claims when someone believes or has proof that your business caused their injury, made them ill, or somehow damaged their property. While this coverage is standard, you may also need an umbrella or excess coverage that will expand the limits of the policy. This is especially important if the average liability claim in your area exceeds the limits of your current policy.
Plus, you may want to investigate environmental liability insurance. With these policies, you are protected if the community, an individual, a corporation, or a government agency believes that you have caused environmental damage during the course of your work. Even if you flip houses, you need to consider all the coverage you’ll need as you work on the house. Even a sewage spill, leak, or gas line problem could warrant a claim against your environmental policy.
What is Commercial Property Insurance?
Commercial property insurance protects the structure where you work. Whether you rent or own the space, you must insure:
- The structure
- All outlying buildings on the property
- All the tools and inventory you keep there
Contractors should also take this coverage one step further, buying into a commercial liability policy that protects the business against things like:
- Slips, trips, and falls on the property
- Illnesses contracted on the property, etc.
You can’t recover anything in the building if you don’t insure it first.
What is an Installation Floater?
An installation floater is one of the best friends of any construction or contracting business. With the installation floater, you can insure everything that is:
- Waiting to be installed
- Installed in the midst of an active project
- Installed but awaiting further materials
- Installed but under the care of another contractor
While you may also purchase inland marine insurance to protect your tools on work trucks and items in transit, an installation floater protects you as the project moves forward. Think of a large office building—your firm has installed all the finished wood panels, ceiling beams, and other adornments.
It’ll be some time before the job is done, and you need that installation floater to protect you in the event of an incident prior to opening the building for tenants.
Reach out to Strategic Insurance for More Information on Insurance for Contractors
Contractors insurance should be viewed as a flexible financial product that moves with the times. Reach out to our team at Strategic Insurance when you need new contractors insurance or wish to review your current policy. We’re happy to help you make adjustments, find the best carrier, and keep costs down as much as possible.
