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Are Your Contractors Covered? : 5 Tips


As a contractor, you are responsible for making sure that your projects are completed on time, within budget, and to the satisfaction of your clients. But even the most careful and experienced contractor can face unforeseen risks and hazards that can lead to costly mistakes and legal issues.

That’s why it’s so important for contractors to carry the proper insurance coverage to protect themselves and their business. Remember, too, this level of coverage should apply to any subcontractors you bring onto the job. Is everyone covered, protecting themselves and your business at the same time?

With this in mind, take a look at the five most important coverages for renovation contractors:

1. General Liability Insurance

General liability insurance covers you and your business when financial losses occur after a liability claim. If you are found to be legally liable for property damage or bodily injury that occurs on your job site, you can file a claim against your liability policy.

Liability insurance will also pay your legal fees if you are sued by a client or a third party, including attorney’s fees, settlements, judgments, liens, or fines.

2. Workers’ Compensation Insurance

If one of your employees is injured or becomes ill on the job, workers’ compensation insurance will pay for their medical expenses and lost wages. It also provides coverage for death benefits if an employee dies as a result of a job-related injury or illness.

Remember, workers’ comp is required by law in many cases. But, even if you’re not required to carry workers’ compensation coverage under the law, you should do the right thing and purchase this insurance to protect your employees and their financial futures.

3. Commercial Auto Insurance

If your business owns vehicles, commercial auto insurance will protect you in the event of an accident. However, you also need commercial auto insurance if you drive your personal vehicle to work.

The same is true of your employees.

A commercial auto policy will pay for damage to your vehicle as well as any damage you cause to another person’s property or vehicle. Remember, filing a claim against your personal auto insurance could result in a denial or even a loss of coverage.

4. Builder’s Risk Insurance

Builder’s risk insurance covers any damage to the property or materials during a renovation project. This insurance is especially important if the contractor is responsible for the materials on the job site, especially when the job can take days or even weeks to complete.

As long as a standing investment is at risk, you need a builder’s risk policy.

5. Professional Liability Insurance

Also known as errors and omissions insurance, this coverage will protect you if a client claims that you made a mistake or failed to meet the standards of the profession. Your policy will cover your legal defense, settlements, judgment, fines, or penalties that are levied against the business.

Contractors Need Customized Insurance Coverage

Each project and contractor have different needs. As a result, it’s important to work with our agents because we understand the unique risks your business will face. We will look over your coverage options, offer the best package for the situation, and even make recommendations you can pass on to your partners or subcontractors.

Reach Out to Liberty Arizona for Help With Contractor’s Insurance

Carrying the proper insurance for your contracting business is just one step in the process. You need to protect yourself, your company, and ask your subcontracting partners to carry quality coverage. For more information on contractor’s insurance, reach out to our team at Liberty Arizona. We can help you assess your exposures, update your coverage, and market policies to all the best carriers in the industry.

Looking for Contractors Insurance?

See how Liberty can provide you and your business with great coverage and great rates.

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