What Insurance Do I Need as a Contractor?

Most contractors require inland marine insurance as well as general liability insurance. The size of your firm will determine if you require additional forms of coverage. Electrical, plumbing, or construction contractors all have a very high danger of getting hurt. Employers must simultaneously monitor several moving elements since the project requires numerous workers and pieces of machinery to finish it on time.

As a result, when safety precautions are not followed, whether by the employer or the employee, it can lead to accidents, property damage, and lawsuits. Having the appropriate insurance for contractors helps reduce dangers like legal action and medical bills.

In order to assist you decide which sort of contractor insurance is ideal for you, let’s take a closer look at some of the many options.

1. General Liability Insurance

Independent contractors must get general liability insurance because it safeguards you from unforeseen expenditures like accidents and medical bills. Additionally, it protects you as a contractor from harm you could have done to a client’s property or as a result of subpar building supplies. 

A smart idea is to combine general liability insurance with professional liability insurance since it’s crucial to remember that general liability insurance does not cover damages brought on by professional carelessness.

2. Professional Liability Insurance 

No matter how skilled they are at what they do, people are nonetheless fallible. Costs associated with incorrect designs or construction that may delay the completion of a project are covered by professional liability insurance. 

Claims of carelessness from an internal source or from a third party are covered, which significantly lessens the strain in those stressful situations, even if the coverage only covers the damages that result in financial losses and excludes the expense of redoing the project.

3. Commercial Auto Insurance

Even if your company doesn’t require a fleet of cars, it’s still crucial to insure the ones you already have. It’s not a good idea to use your car to perform errands for the firm. It is ideal to have a vehicle registered in the business name that you can cover through a commercial auto policy. 

In either case, a separate auto insurance coverage must be purchased for every vehicle used for contractual work. All sorts of vehicles, including trucks, compact cars, trailers, and dump trucks, are covered by truck and cargo insurance. It is advised to get business auto insurance if the vehicle is utilized on public roads in the county where it was registered.

4. Inland Marine Insurance  

Transporting items from one location to another is a part of your job if you work in the construction sector. It is thus advised to get inland marine insurance. It is essential coverage for contractors.

In short, inland marine insurance provides protection for goods, materials, and equipment while they are being moved across land (often by truck) or while being temporarily kept at a project site or warehouse. If you have Inland Marine coverage, you won’t have to worry about losing anything in the case of an accident, theft, vandalism, or total loss.

It’s crucial to avoid taking on your contractor’s responsibility concerns. When you choose a contractor who is properly insured, you are not only shielded from litigation resulting from the contractor’s activities but also from financial hardship should the contractor damage your property or harm you or others.

If you are interested in more articles like this, here’s one about warning signs that your building needs structural maintenance.

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