What Insurance Coverages do Contractors Need?

When you are helping contractors obtain coverage for their businesses, you may need to help them navigate several different types of risk exposure. Any specialty contractor’s work is likely to involve a significant potential for liability and loss, and the way that they insure their operations must be commensurate with their risk. Here are a few different policies that contractors may need to evaluate.

General Liability

A construction general liability policy is probably the most essential component of a commercial insurance package for a contractor. If an accident on a jobsite causes property damage or bodily harm to a third party, this type of policy can address claims. Certain coverage levels may be a requisite for a contractor to bid on certain projects. Clients may request to be named as an additional insured or an interested party on a general liability policy.

Artisan Coverage

Specialty contractors need to get coverage that is tailored to their risk. Artisan contractors insurance applies to situations in which a contractor’s specialized service could cause a client or another party to sustain considerable damages. Examples of artisan contractors include carpenters, plumbers, and HVAC technicians.

Umbrella Coverage

An additional policy may be necessary to meet the full measure of risk with a large project or large-scale operations in general. If a claim exceeds the limits of a general liability or artisan contractor’s insurance policy coverage, an umbrella policy can pay for the remainder.

Workers’ Compensation

A company that has employees is probably going to need to carry workers’ compensation coverage as a matter of state law. Not having employees or having very few employees may exempt a company from this requirement. However, some states require companies in specific industries with a high risk of occupational accidents to carry workers’ compensation regardless of how many people they employ.

Equipment Coverage

A contracting company’s ability to operate may depend on its ability to use special tools or equipment. Some tools and equipment may be expensive and difficult to replace. A policy that covers equipment can be invaluable if something that a contractor needs to complete a project is suddenly non-operational.

Commercial Auto Insurance

Contractors often need to work at a different job site almost every day or sometimes even several job sites in one day. Even if a vehicle is not a company asset, using it for work is probably going to necessitate obtaining an auto policy that covers commercial use.

A contracting company’s needs will depend on the type of work that it does, its revenue, and its assets. It is important to work closely with a company’s principals to thoroughly analyze their needs and offer good guidance.

About Mavon Insurance

At Mavon Insurance, we pride ourselves on our unique approach to insurance. We focus on integrity, communication, professionalism, respect and gratitude to help our clients succeed and place business in specialized markets. For more information about our products, or to become an agent, contact us today at (855) 248-1480.