Types of Insurance Contractors Can’t Do Without


Construction contractors have a choice of projects to go for in order to minimize their exposure to risk. However, this doesn’t mean that the threats inherent to their business have been eliminated altogether. The construction business is fraught with risks, many of which are difficult to control or are beyond the control of a contractor. With perils ranging from injury to workers to spikes in cost of materials, some form of contractor insurance or another has to be taken. Essentially, there are five types of insurance coverage that contractors can’t do without.

General Liability

If building contracts is your line of business, you have different liabilities from other entrepreneurs, like a shop or store owner. While there are risks inherent in all business ventures, contractors face a different set of threats. They can also face more liabilities particularly in high-risk construction work. Notably, working at heights of just over two meters in construction is already considered high risk. In order to be completely protected from liabilities, some industry-specific liability insurance plans have to be taken, such as builders’ risk and roofing contractor insurance.

Property Insurance

Damage to items is something that contractors can only minimize in the course of a building project. At risk in particular are the property or field equipment used in a project. Even some form of insurance has to be considered for those valuable support properties in the home office which can sustain damage from unexpected circumstances. With these items properly insured, you as a contractor don’t have to shell out money to pay for the repair or replacement of damaged properties.

Professional Liability

Each line of work or profession has its own specific risk. Likewise, there are risks that contractors can’t help but expose their customers and clients to. A coverage on professional liability will extend insurance protection on these risks. Policy coverage on omissions and errors and malpractice insurance are two examples of this type of insurance.

Car Insurance

A commercial auto insurance policy is another must if you’re a contractor. You have to have adequate coverage while driving to the jobsite to supervise work activities. Then, there’s the trip to business meetings or to attend to the requirements of your clients. With this type of insurance, you can be reimbursed for damage that your vehicle may sustain from an accident.

Workers Compensation

Seeking a contractor insurance quote must include an item on workers compensation. As in nearly all cases, contractors need employees to help them out in major building projects. Workers compensation insurance would be necessary even if you have only one employee on your payroll.

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