The Two Policies You Need As A Contractor

As you begin your business as a contractor or construction company, you are required by law to carry (at least) these two pieces of insurance—for your workers, and your clients, and your protection! The first non-negotiable piece of insurance you should have as a contractor is contractor’s liability insurance. Contractors liability insurance protects you if something goes wrong, or a piece of property is damaged during construction. Some of the typical claims that are covered by liability insurance include:
  • Damage Claims –The insurance covers the cost of repair for damages while doing work on client property.
  • Injury Claims – The contractor’s liability insurance covers any court judgments and medical or funeral expenses should anyone get injured while on duty. This is different from workers’ compensation insurance.
  • Job Completion Claims – In case the client feels the project doesn’t meet expected standards, the insurance will shoulder, in part or full, the cost of making needed adjustments. The second insurance policy that is required in most states for a contractor is workers' compensation coverage.
This coverage protects you and your workers from paying out of pocket for compensation, or medical bills should an accident happen on-site. Having this type of coverage in place protects you as an employer because it relinquishes your crew's right to sue you for negligence if they’re injured on the job. There are many additional types of commercial insurance coverage to explore as a contractor that protect you if something, unfortunately, goes wrong. To learn more about commercial umbrella insurance, fleet auto insurance, and more business policies, call Smith Brothers at (860) 652-3235 to speak with an agent, or find out more at Sources:


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