Your construction company is covered by contractor insurance in the event of litigation, workplace accidents, equipment damage, and other situations. You could be compelled to get this coverage, either by the law or by the employer that hired you. To protect themselves against these many hazards, contractors often need a number of business insurance plans, which are typically available from the same insurer. Find the finest contractor insurance for you by following these steps.
What is contractor insurance?
A set of insurance policies known as contractor insurance often protects your company from financial damages in the event that you are the subject of a claim. Most contractors require inland marine insurance as well as general liability insurance. Whether you require additional coverage relies on a variety of criteria, including the size of your business, state regulations, and the nature of your employment.
How much does contractor insurance cost?
According to business insurance marketplace Insureon, the average cost of contractor insurance may reach $595 per month. However, that cost is predicated on acquiring several individual plans, and you might not want all that coverage.
The following are the average prices for contractor insurance policies:
- Less than $70 per month for general liability insurance.
- $275 per month for workers’ compensation insurance.
- $150 per month for commercial auto insurance.
- Less than $15 per month for contractors’ tools and equipment insurance, which is a kind of inland marine insurance.
- $85 per month for professional liability insurance.
The price of business insurance might differ significantly based on your company’s size, location, and history of insurance claims. Typically, policies with greater limits or smaller deductibles cost more.
What does general liability insurance for contractors cover?
Typically, general liability insurance for contractors covers risks including:
Bodily harm. You might be responsible for a client’s injuries if they are hurt while on the project site where you are performing construction work. Your general liability insurance may assist in defraying related legal, medical, and settlement expenses if the other party sues you. However, employee injuries are not covered by general liability insurance; instead, you must get workers’ compensation insurance.
Property harm. When remodelling a client’s home, you run the risk of accidently damaging some of their furnishings and being held accountable for it. If the customer decides to file a claim for the property damage, your general liability insurance may pay for the cost of replacing or repairing the furniture as well as any associated legal fees.
Responsibility for completed activities. You could still be responsible for the damage if you fix the plumbing at a client’s house and a pipe you installed bursts a few months later because you were the one who did the job. Contractor general liability insurance might assist in paying your legal fees and any awarded damages.
Add-ons for general liability policies
Some insurance companies offer add-ons for general liability policies. Add-ons give additional protection that is not included in standard coverage. A few examples of add-ons that contractors and construction companies could have access to are as follows:
Equipment protection. In the event that your tools and equipment are broken, damaged, or stolen, an equipment add-on can assist in defraying the expense of replacing or repairing them. Between general liability and commercial property insurance, this coverage fills the gap.
Covering data breaches. Data breach insurance may assist in covering the expenses related to alerting customers, providing credit monitoring, and enhancing security in the event that a hacker gains access to your computer systems and steals consumer information.
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