Contractor insurance is a vital requirement for those who run their own businesses in the construction industry. Contractors need to be aware of the different types of insurance policies available to them to protect their businesses from potential losses. That is why we will talk about the various types of insurance policies that contractors need to know to protect their businesses.
General Liability Insurance
General liability insurance is the most common type of insurance policy that contractors need to have. This policy protects the contractor’s business from claims of bodily injury, property damage, and personal injury. In the construction industry, there are many instances where accidents can occur, and this policy can help contractors cover the legal fees and costs associated with such claims.
For example, if a contractor is working on a construction site, and a worker falls and gets injured, the general liability insurance policy can help cover the medical expenses incurred. This policy can also protect the contractor’s business from claims made by third parties, such as property owners or customers, who may suffer losses due to the contractor’s work.
Workers’ Compensation Insurance
Another essential insurance policy that contractors need is workers’ compensation insurance. This policy provides coverage for employees who are injured or become ill while on the job. The coverage can include medical expenses, lost wages, and rehabilitation costs.
In the construction industry, workers face many hazards, such as falls, injuries from tools, and exposure to hazardous materials. Having workers’ compensation insurance can help contractors provide their employees with the necessary coverage for their medical expenses and lost wages.
Commercial Auto Insurance
Many contractors use vehicles to transport equipment, tools, and materials to job sites. Commercial auto insurance is necessary to protect the contractor’s business from accidents involving their vehicles. This insurance policy can cover damages to the contractor’s vehicle, injuries to passengers, and damages to other vehicles involved in the accident.
Contractors who use their personal vehicles for business purposes may not be covered by their personal auto insurance policy. Therefore, it is essential to have commercial auto insurance to protect their business from potential losses.
Professional Liability Insurance
Also known as errors and omissions insurance, this type of policy is essential for construction companies that provide design and consulting services. This insurance policy protects the contractor’s business from claims of negligence, errors, or omissions in their work.
For instance, if a contractor provides design services for a building that ends up having structural issues, the professional liability insurance policy can help cover the legal fees and costs associated with the claim. This policy can also protect the contractor’s business from claims of breach of contract, misrepresentation, or fraud.
Conclusion
Contractors need to be aware of the different types of insurance policies available to them to protect their businesses from potential losses. General liability insurance, workers’ compensation insurance, commercial auto insurance, and professional liability insurance are some of the essential insurance policies that contractors need to have.
Having these insurance policies in place can help contractors focus on their work, knowing that their business is protected from potential losses. You should work with an experienced insurance agent who can help contractors choose the right insurance policies to meet their business needs.
If you’re a commercial contractor, trust the contractor specialists at Pascal Burke Insurance Brokerage Inc. to find the right insurance coverage for your business. Our brokers understand the unique risks and challenges you face and will work with you to find the best contractor’s insurance in Denver. Contact us today for a consultation and see how we can help protect your business.