Did you know that 41% of small business owners think personal insurance is enough protection if they were to have a liability claim? They even believe that it’s enough when it comes to business liability claims. But depending on your business, that might not be the case.
Does your business hire independent contractors? If so, you may need to get contractors insurance.
As a business owner, you’re responsible for the safety of your employees. But what happens if one of your contractors gets injured on the job?
Contractors insurance can help protect your business in these situations. It can cover medical expenses, property damage, and legal fees, as well as help prevent potential lawsuits.
Want to learn more about this type of insurance? Read on to find out!
What Is Contractors Insurance?
Contractors insurance is a type of liability insurance. It helps protect businesses that hire contractors from certain risks.
For example, a contractor might get injured while working on your property. This insurance can help cover their medical expenses.
There are two main types of contractors insurance. Make sure you get the right one for your business!
General Liability Insurance
This type of insurance can help cover property damage and injuries that happen. It can also help pay for legal fees if you’re sued.
Professional Liability Insurance
This type of insurance can help cover mistakes that lead to financial losses. For example, if a contractor makes a mistake that damages your property, this insurance can help to cover the costs of the repairs.
Covers Medical Costs
Protecting a company from lawsuits is not the only benefit of contractors insurance. This type of insurance can also help cover the cost of medical care. For instance, when injuries happen while work takes place on your property.
This can help you avoid paying out of pocket for these expenses. And it can also help prevent potential financial problems for your business.
Can Cover Property Damage
Business liabilities don’t always involve personal injury. Contractors insurance can also help cover property damage.
Sometimes, accidents happen. And if a contractor damages your property, this insurance can help pay for the repairs.
Can Cover Legal Fees
Insuring a business can help protect you from more than financial risks. It can also help protect you from legal troubles.
If a contractor sues you, this insurance can help pay your legal fees. This can help you avoid having to pay these costs out of pocket.
It’s important to note that contractors insurance does not cover everything. For example, it will not cover intentional damage or criminal acts.
What Is a Business Owner Policy?
Small business insurance policies are also known as BOPs. They can help protect businesses from a variety of risks.
BOPs often include general liability insurance. But they can also include other types of coverage. It can consist of property insurance and business interruption insurance too.
Some BOPs will even cover the cost of hiring a new contractor!
BOPs can be an excellent option for businesses that want comprehensive protection. But they’re not suitable for every business.
For example, BOPs often have lower limits of liability than stand-alone policies. So if you need a high limit of coverage, a BOP might not be the best option for you.
Get Contractors Insurance Today
Now you know more about contractors insurance. This type of insurance can help protect your business from various risks.
Insurance for companies that hire contractors is not required by law in most states. But it’s good to get this coverage if your business has any potential liability risks.
That said, some states enforce businesses to have this type of insurance. So make sure you check your state’s laws before making a decision.
Are you looking to get contractors insurance? Contact us for more information!
Top Contractors Insurance Services is a full-service contractor insurance agency handling workers’ compensation, general liability, construction bonds, and auto quotes.