insurance for contractors

Insurance Essentials for Contractors

Insurance for contractors is essential whether you’re doing a small or big construction project. What policy could provide you the most comprehensive coverage?

What Must You Do and Get?

You need to evaluate the risks involved in every business contract you take. The size of your company also matters.

Small-sized contractors with ten or fewer employees could do well with essential coverage such as business owners policy. Medium-sized businesses would need more than the essentials, and large companies have to get specialized insurance programs.

You don’t have to think about spending on premiums because litigation is far more expensive. These litigations could affect your business operations and capital.

We know you don’t need added costs, especially for small business owners like you. Thus, we gathered basic information about essential coverage for contractors, regardless of size.

Commercial General Liability Insurance

This CGL insurance covers liability claims from third parties for physical injuries and damage to their property. The construction business has inherent risks, even with stringent safety protocols in place.

People who are just passing by your construction site could get injured. With CGL, you can protect yourself from costly legal expenses and medical treatment for those injured individuals.

Workers Compensation

This policy is important for contractors with employees. Whether it’s two or two hundred employees, you need to insure them.

Working on your construction projects exposes your employees to significant risks. Anytime, they might suffer injuries or get into accidents. These employees have families, and insurance would help them get through tough times during incapacity.

Workers Compensation includes disability benefits, medical treatment, and rehabilitation costs. Part of the insurance is giving a portion of the worker’s salary as part of the benefit.

Aside from these costs, you can protect your business against litigation. Your employee can’t sue you for damages because the policy will cover that for you.

Contractors Pollution Insurance

Contractors and builders have to follow strict environmental laws. During construction, you can control pollution risks, and third-parties could sue you for any violations.

With contractor’s pollution insurance, you can lessen the costs of these lawsuits. If you have been in the business for years, you already have an idea of how these litigations could ruin a business.

Some lawsuits would require you to stop construction until the case is resolved, and you don’t want that. Time is a constraint that contractors need to overcome all the time.

Remember, a delay means an unfinished project. Longer days would cost you money, and eventually, your project.

Automobile Liability Insurance

As contractors, you often transport construction materials and equipment, including workers, to the site with trucks or other means. Most often, these vehicles are business properties.

The driver could hit someone while in transit. Even if your workers own the vehicle used for transporting materials or other workers, you still need to insure the owner.

Automobile liability insurance covers claims against you in cases of injury, partial or complete disability due to an accident. It includes coverage of legal costs and treatment.

You can get insurance for automobiles used in construction projects, whether these are rented or owned.

Builders Risk Insurance

This policy is often a partner to CGL. It covers stolen, lost, or damaged property. It is best for subcontractors or equipment owners who rented their properties to contractors.

Either way, having builder’s risk insurance can lessen the financial burden of replacing or repairing damaged properties.

Roofers Insurance

This is under general liability insurance—roofers insurance cover contractors who are at risk of accidents and physical injury during roofing activities.

It covers not only the business but also third-parties who might get injured due to tools falling from the roof.

Other Insurance Concerns

Sometimes, these essential Denver Contractors Insurance policies might not be enough to cover claims. You can include umbrella coverage, especially if you’re dealing with high-cost projects.

In construction contracts, you can either get the bare minimum or go over the basics. Contracts require some insurance policies.

When it comes to safety and insurance, premiums should be the least of your concerns. Instead, you should ask your insurance provider for coverage that helps reduce costs during litigation.

Don’t wait for accidents to happen and still be uninsured. These could ruin your reputation as a contractor because clients and workers would look at it as being uncaring.

About Mountainside Insurance Management

Mountainside Insurance Management, LLC is a multi-state insurance brokerage and management specialist. We are an independent brokerage and work with over 150 A+ carriers to secure comprehensive coverage for our clients. Our brokerage is committed to providing the highest quality insurance and risk management services at the most competitive premiums with hands-on services tailored to our customers’ needs. For more information about reducing your risk, contact us today at (720) 800-9495.