Why You Need Contractor’s Insurance
The construction industry is a dangerous one, and if your business deals in contracting, it’s essential to have insurance to protect your company and employees.
Whether you install HVAC units, repair siding or even construct brand new buildings, there’s always the risk of something going wrong on the jobsite. In the event that someone gets hurt or your project causes damage, contractor’s insurance can protect your business from any lawsuits or claims that could jeopardize your business.
Coverage Options
Depending on what your insurance company provides, there are a lot of options in what you can or should get covered:
1. General Liability
Liability insurance is one of the most important ones to invest in because it covers any damage a contractor causes to a third party and risks that come with ongoing operations. This includes:
- Bodily injury
- Property damage
- Illness
- Copyright infringement
If anyone not associated with your company receives any of these while on site, your company will be protected.
2. Worker’s Compensation
Unlike liability, worker’s comp covers anyone employed by your business. If one of your employees gets injured while on the job, insurance will take care of their medical expenses and sometimes lost wages. This will also protect your company from any personal injury lawsuits.
Worker’s Compensation is required by the state of Virginia for any contracting operations.
3. Equipment Coverage
If your company owns any equipment such as hand tools, heavy machinery or trucks, this coverage will protect them from natural events or theft. Meaning, your insurance company will cover the cost of repairing or replacing your equipment if something beyond your control damages them.
Leased Equipment Coverage
For equipment that you rent for a specific job, this will cover damage, loss or theft in case something happens to the tools while they are in your possession.
4. Property Insurance
If your company operates on its own commercial space, then property insurance will protect the space from any damage. This includes any buildings you own or storage facilities that keep your equipment. (Contractors who work on a third-party’s job site or lease their space do not need this coverage).
5. Commercial Auto
Many construction sites require vehicles for transportation or operational needs. If you own any company pickup trucks or other cars, a commercial auto policy will protect your business from any damage that occurs as a result of these vehicles. This includes if an employee gets into an accident in a company truck, or if the truck causes damage to the job site.
6. Completed Operations Liability
While general liability covers any accidents that occur during ongoing construction, completed operations liability covers any damage that happens after the project is completed. For example, if a homeowner’s pipes burst months after you installed them, you are protected.
7. Umbrella Liability
If you are a large or new construction contractor, you may require more coverage than what general liability offers. Most insurance companies put a limit on general liability plans – depending on your line of work, it could be easy to reach these caps if your jobsite is a risk.
Umbrella liability raises these policy limits to cover more expenses, so your company can continue being insured even after an emergency takes place.
Reliable and Affordable Contractor’s Insurance in Richmond, VA
No matter what your company does (windows, landscaping, electrical installation, etc.), it’s important for you to protect your employees’ health and company’s reputation with a good insurance plan.
Contractor’s Insurance will save your business from the unpredictability of life, so you don’t have to pay for being in a risky industry.
Sanford Insurance is an outstanding insurance company in Richmond, VA that offers contractors a variety of protection plans for their business. You can receive general liability and couple it with additional coverage based on what your operations require.
Give us a call today and learn more about our comprehensive Contractor’s Insurance plans.