When it comes to running your contracting business, there are a lot of details to manage, from the job schedule to expenses for labor and supplies. However, there is also the question of having the right contractors insurance. The question is whether you need this insurance and what types of coverage are considered part of contractors insurance. Since insurance provides a protection against events that could have significant financial implications for your company.

Let’s break down who needs contractors insurance and the types of coverage that are available.

Who Needs Contractors Insurance?

No matter whether you are a large commercial contractor or a smaller residential operation, your contracting business needs to have contractors insurance in place. This insurance provides protection for your company in a variety of ways, including workers compensation and liability insurance should there be damage done to their property. Additionally, if you are working on new builds, then in order to add on more work, you need to be able to guarantee you can complete it on schedule.

Many contractors are required to have insurance in place just in case they delay or are unable to complete the job, often known as construction bonds. There are a variety of situations that make it necessary for a contractor to have insurance and there are various types of coverage depending on your business and its specific needs.

What Types of Coverage Are Available?

For contractors insurance, there are a variety of policies available to fit your company’s needs and budget. Additionally, you might be required to have certain minimum thresholds of contractors insurance for your company to operate in a specific state. Local governments might also have specific requirements you need to meet to take on building or remodeling projects.

That being said, it is important to find out what your state requires and then make sure to meet those minimum requirements. Working with a qualified contractors insurance agent, you can review your business and determine if you need more coverage than what is required by the state.

Most contractors insurance can be provided under an umbrella policy, which will give you liability coverage and workers comp, along with coverage for your equipment and company vehicles. However, it is important to check with your insurance agent to determine what type of coverage is provided as part of their contractors insurance. Your state’s requirements might also impact what is included as part of your umbrella policy.

Contractors Professional Liability Insurance

There is also contractors professional liability insurance that protects contractors in case of construction errors that may occur during the construction process. Designing a building or planning out a remodel can involve multiple people, including the architects, building contractors, and other specialists.

You can also put this type of professional liability insurance into place to protect your customers from mistakes made by the subcontractors or third parties that you might hire to work on the project. If you are a larger construction company that offers multiple in-house services, then your company is at greater risk of potential liability. Having contractors professional liability insurance provides protection for these types of companies.

However, it is important to note that this type of insurance is typically only available to contractors who are providing design-build or construction management services. General commercial liability insurance is the standard and the professional liability insurance is meant to cover any potential gaps in that general liability policy.

It is important to make sure that you put the insurance policies in place to protect your construction business. Therefore, it is important to check with an insurance agent who specializes in contractors insurance and understands the requirements of your state. Contact us today to go over your business insurance needs today.

Top Contractors Insurance Services is a full-service contractor insurance agency handling workers compensation, general liability, construction bonds, and auto quotes.