Contractors get the job done—but take on a lot of risk while doing it. The Bureau of Labor Statistics reports that about 4% of all workers in the industry suffer injuries or illnesses—and the resulting costs add up. This is compounded by the many other problems that can occur at a given work site. Due to the many risk factors contractors routinely face in their work, good insurance policies become essential to any successful contractor's operation.
You should also consider how you're going to run your business. For example, running it as a Limited Liability Company (LLC) can help insulate you from cost overruns and avoid putting your personal assets at risk if a claim larger than your policy is filed. Our agents can help you determine the likelihood of hazardous situations to your business and how best to prepare for them.
What a Contractors Insurance Package Covers
Contractor's insurance covers problems typically associated with the risks of construction and renovation projects, including risks to your employees, your work site, and anyone or any equipment involved. Most of these policies are a combination of other policies, often including:
- A Business Owner's Policy
- General Liability Insurance
- Worker's Compensation
- Commercial Vehicle Insurance
From there, what coverage is needed depends on the work that you do. Contractors in different industries often have different insurance needs (and occasionally different requirements, depending on local legislation). Independent Insurance Center - Fire Mark can help you determine which forms of insurance are required for your company and ensure that you're never left exposed.
Contractors Equipment Insurance
Getting a job done takes more than human expertise and a keen eye for detail—you need to have the right tools for the job, or it's probably not going to be finished. However, if something goes wrong and your equipment is damaged or destroyed, you stand to lose a lot of money. This is particularly true if your company operates any larger pieces of equipment (bulldozers, etc.), which are sometimes omitted from normal coverage.
Independent Insurance Center - Fire Mark's goal is to mitigate your risks as much as possible, and the more we know about your equipment, the better the policy we can offer. On request, we can let you know about how certain pieces of equipment are classified, the associated level of risk, and what kind of reimbursements you can expect if something goes wrong.
Contractor Vehicle Insurance
If you're one of the growing number of contractors who use vehicles during a job—not just to get to and from a worksite—then you may need an additional commercial vehicle policy that covers the vehicle(s) you use.
If you don't use your vehicle for commercial purposes, you may be able to lower your monthly premiums by having this coverage removed from your policy. The choice is ultimately yours, but if you're having trouble deciding, our agents can help you figure out whether or not your use of a given vehicle qualifies as a commercial purpose.
Free Reports Below:
How to Avoid the Seven Deadly Sins When Buying General Liability Insurance
And how you as a Contractor can finally get the peace of mind you work so hard for!
This report was put together at the request of my clients. Ten years ago, this report would not have been necessary, but times have changed. Ten years ago you could bid a job complete the job and move on to the next job. Lawsuits happened just to the next guy. Insurance policies were simple and life was wonderful… General liability insurance has changed drastically in the last ten years and now there are traps… not intentional traps, but changes in the industry that you have to keep abreast of, which brings us to the 7 Deadly Sins Report...
The Nuts and Bolts of Certificate Management
Welcome to the Independent Insurance Center (IIC) certificate team! We have been in the insurance industry for over 45 years and most of that time serving the needs of Contractors. This Free Report is our way of sharing that knowledge and experience with you.
This Free Report is intended to be a guide to Certificates of Insurance, whether you are giving a certificate to a government agency, general contractor, homeowner or you are receiving a certificate from a general contractor or sub-contractor.
In this Free Report you will find a Certificate of Insurance completely filled out. Please use this certificate as a basis of reference as we go through this report.
We made every effort to keep things simple and tried not to use too many insurance words, but insurance wording cannot be completely ignored.
1. "About the Specialty Trade Contractors Subsector." U.S. Bureau of Labor Statistics. Accessed April 20, 2016. http://www.bls.gov/iag/tgs/iag238.htm.
2. "Sole Proprietorships vs. LLCs." Nolo.com. Accessed April 28, 2016. http://www.nolo.com/legal-encyclopedia/sole-proprietorships-vs-llcs.html.
3. Utschig, LeRoy. "Contractor's Equipment." Rough Notes. Accessed April 20, 2016. http://www.roughnotes.com/rnmagazine/1997/sept97/09p98.htm.