Everything You Need To Know About Contractor's Insurance

​Your equipment and workforce are very valuable in your business, so when unexpected damages, employee injuries, and lawsuits happen, you're prepared to respond and resolve such circumstances. 

Contractor's insurance is essential to protect your business from unexpected damages. It also helps cover employee injuries and lawsuits, so you can focus on ensuring everything goes smoothly at work.

What is Contractor's Insurance For?
Contractor's insurance is for people who work with their hands building or fixing things in different locations, and this includes the following job:

• Carpenters
• Plumbers
• Electricians
• Landscapers
• Construction workers
• Repairmen

The line of work for these people is at a high risk of work-related injuries. Contracting businesses may provide contractor's insurance, which should cover specific cases within their work area.

Where You Need The Insurance
You'll be needing the contractor's insurance for the following. Some are mandatory, and some are highly recommended because the coverages are not limited to structure building but should also help maintain the business.

For Your Equipment
Business owner policy (BOP) for contractors provides three types of insurance packaged into one policy, which includes the following.

1. Commercial Property Insurance
   Commercial property insurance should cover your property damages, including your equipment. For the equipment, the insurance should cover particularly both items you owned and the one you leased.
   
   
2. Commercial Income Insurance
   Commercial income insurance may secure you from operation interruptions due to property damages that can affect and lead to decreased income on your business. Commercial income insurance is limited to specified types of damage, so check your insurance policy for those details.
   
   
3. General Liability Insurance
   General liability insurance may cover hospitalization bills due to third parties or people not involved within your business getting caught in an accident within your property or because of your equipment. You may also be covered if your contracting business or employees damaged your client's or third-party properties.

For Your Employees
Almost every state requires businesses to provide worker's compensation insurance. This insurance may cover your employees in work-related injuries that may result in the inability to report to work. Thus, it will compensate for the income loss for the injured employee.

For Your Company Vehicles
Your company vehicles used for construction operations may be covered with a commercial auto policy. This may protect your company vehicles from the accidents they might cause or property damage.

Construction Damages
Professional liability insurance should cover repair costs, property damages, and injuries caused by you, your employees, or a third party. 

Conclusion
The construction site is a high-risk area for accidents, which can cause injuries to employees and third parties. This is why most states have mandatory insurance and specific insurance policies because of the line of work and operations the contracting business is involved in.

At Desmond Insurance, we aim to provide comprehensive insurance policies that make your life easier. We want to help you get the insurance that fits your needs. You can get more information about our products and services by calling our agency at (859) 491-5100. Get your free quote today by CLICKING HERE. Topics and coverage discussed in this article are not guaranteed, consult with your agents to determine what your policy does and does not cover. We are more than happy to help!