Contractors run into a lot of unique situations that can put their business at risk. They handle a lot of heavy equipment at a client’s property, they have customers coming in and out of their building, and someone could get hurt on the job. You never know what’s going to happen.
The best thing you can do to protect yourself in all instances is to invest in insurance for contractors. Opening a general policy will give you a little peace of mind and help you keep your doors open.
The problem is the cost. Buying coverage can be difficult when you’re first starting. Let us be your price calculator.
Check out this guide to learn what kind of prices to expect.
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Types of Insurance
There are many different types of insurance that you’re going to need to invest in if you want to keep your business safe from being sued. Not only that, but in many cases, things like worker’s compensation are a requirement. If you don’t have it, you can get into serious legal trouble.
General Liability Insurance
First up on the agenda is general liability insurance. Having it will cover your legal expenses if someone sues you for bodily injury or property damages. This includes injuries someone sustains due to false advertising on your part.
Even cheap general liability insurance will cost you about 90 dollars a month to have. There is a way to save some money on it, but we’ll get into that a little later.
Worker’s Compensation
As a contractor, you may have some workers on board with you. Accidents can happen on the job. If someone is hurt while putting on a roof or cleaning a house, you’ll be responsible for paying for their medical bills.
You don’t want that coming out of your pocket. Paying for worker’s compensation insurance will cost you almost 300 dollars or so a month, but it’s more than worth it. It’s also necessary.
Most states require you to have this type of insurance for building contractors.
Commercial Auto Insurance
If you or your workers use a company vehicle to get from client to client, you’re going to need commercial auto insurance. It will cover damages in the event someone wrecks the car.
If you damage another person’s vehicle and it’s deemed to be your fault, your insurance will cover those damages as well. It can also protect against extreme weather conditions and acts of vandalism.
What Does General Contractor Insurance Cover?
There is a way to save some money on a few of these essential insurance policies. The answer is general contractor insurance. It will allow you to bundle your liability and commercial property insurance together.
It’s much cheaper than paying for them separately. It will cover physical injury, property damages, medical bills, and general false advertising.
Injury
Depending on what type of job you do, there’s a good chance that you’re going to be bringing large pieces of equipment to your client’s property. Most clients don’t sit back and let you do your thing. They’ll pop in every so often to see how you’re doing.
Let’s say that when they do, they trip over one of your heavy pieces of machinery. They now have full range to sue you for any medical bills that occur due to the fall.
Your general business policy will take care of it, so you don’t have to pay for the hospital bill out of your own pocket.
Property Damages
You’re putting in a new piece of furniture for a client and end up scratching their shiny flooring. The customer isn’t going to be too happy because now they have to hire someone to buff the scuffs out.
They can make you pay for it instead. General insurance policies cover property damages. You won’t have to pay a dime of your own money to make repairs.
False Advertising
You advertise your product to do one thing, but it either doesn’t do what you say it will, or worse. A client ends up getting hurt due to your negligence.
The customer can and most likely will sue you for false advertisement. Your general liability insurance won’t only protect you in cases of injury.
A popular way of advertising is commercials. You don’t mean to make fun of one of your competitors during the commercial.
You didn’t even realize that you did it, but the competitor certainly takes it as a jab. They can sue you for slander.
Buying Tips to Keep In Mind
Now that you have some prices in mind and know what insurance can do for you, it’s time to get down to business. There’s a chance that you won’t need all these policies. You may be able to get by with only the basics.
Take a minute to weigh your risks. This way, you know what you need and what you can do without. Once you have that down, start comparing companies.
Remember that getting a quote doesn’t lock you into an obligation. Call a variety of different companies to get estimates. You should also consider going through an independent agent to get the best deal.
Everything You Need to Know About Insurance for Contractors
If you want to protect yourself and your business, it’s important to look into insurance for contractors. It will handle all your legal fees in the event that you’re sued for one reason or another.
Even if you never use it, it’s better to have it and be prepared than not having it at all. It’s also required in most states.
Having the proper insurance is only step one to getting your company up and running. For more tips, visit the Business section of our blog.
