5 Critical Insurance Considerations for Contractors and Trades

​No business is ever immune to accidents. Contractors encounter accidents anytime. Thus, it is essential that you have the right insurance coverage and that you know well which things your coverage does not include. If you’re a contractor, you need to ask the right questions in order to make sure that you have the coverage that perfectly suits your business. 

Do You Need Commercial Vehicle Insurance?
If you’re using cars, vans, trucks, and heavy equipment for your business, then these will need commercial vehicle coverage. You need commercial vehicle insurance in order to adequately protect bodily injuries or damage to the property of third parties that you accidentally cause. Your commercial insurance for contractors and trades will not be enough to potential damage caused by heavy equipment or vehicles. 

Is Your Business Owners Policy Enough for Your Needs?
If you have a small contractor business, then a great option will be a business owners policy. However, it becomes the wrong choice for many if it's not sufficient. Your business owners policy covers property and liability risks and medical payments to people that encounter accidents in your property as well as property damage or loss and business income loss. However, a business owners policy does not include professional coverage or may not be enough to cover a big potential accident. In that case, you have to purchase bigger coverage.

Would an Umbrella Policy be Worth the Additional Cost?
Contractors often benefit from umbrella policies that increase coverage limits of several policies while giving you a chance to pay an affordable premium. If you think this is a practical choice, then go for an umbrella policy. It will provide you with more coverage than your General Liability Policy or your commercial business policy for contractors and trades.

Do You Have Protection for Your Tools and Equipment?
One of the most frequent types of loss to many tradesmen and contractors is the theft of tools and equipment. If you had very expensive tools stolen, they'd be very difficult to replace. If you don't have coverage for this, then you'd better buy commercial insurance for contractors and trades. Make sure too that the coverage should include a full replacement for equipment that you owned or rented.

Does Your Errors and Omissions Insurance Provide Enough Coverage?
Claims on errors and omissions can seriously damage your business, especially if you're a small contractor. Expect to pay thousands of dollars if a client claims negligence simply because one of your workers made a mistake or misjudgment. In that case, thoroughly review your Errors and Omissions policy or purchase commercial insurance for contractors and trades.

Some Final Words
Commercial insurance for contractors and trades will not only insure your tools and equipment but will also do the same to your business as well as to the damage done by your commercial vehicles. However, you should always check whether your business is getting enough coverage. 

At Desmond Insurance, we do our best in making sure that our clients are well-protected with affordable and comprehensive policies. We make sure to go the extra mile to help you with your needs. To learn more about how we can help you, please contact our agency at (859) 491-5100 or Click Here to request a free quote.