What Insurance Should a Contractor Carry?

Being a contractor and business owner entails many challenges, especially when you are just starting up. One item you should always consider is getting the appropriate insurance coverage for your business.

While you might be concerned about incurring higher insurance premiums, think of insurance as a business investment. No matter how carefully you run your operations, it does not eliminate the possibility of accidents and lawsuits. You can suffer a significant loss and might even be forced to close if you have to pay for claims out of your own pocket only because you did not consider getting adequate insurance coverage.

You must make the best choice right off the bat. You can discuss your insurance needs with reputable and reliable insurance firms and protect your operations with CO Contractor Insurance.

Alternatively, read on to get an overview of what type of coverage you need, especially if you are involved in the building and construction industry.

Commercial general liability insurance

Commercial general liability insurance, one of the most common types of insurance for a contractor, offers coverage against third parties’ claims for physical injury or property damage in the course of contracting work. It also covers the legal expenses incurred during litigation, not just the compensation amount.

Workers compensation

This insurance coverage protects your workers if they suffer accidents while performing work-related functions or while on the job. workers compensation coverage includes the cost of medical treatment, disability income, rehabilitation costs, and compensation to families for work-related deaths. Workers compensation is critical for protecting business owners from claims or court cases filed by injured employees or families of deceased workers.

Commercial auto insurance

Contractors usually transport materials, equipment, and workers to a job site using different types of vehicles or heavy trucks. In the event of property damage, bodily injury, or even death at the job site caused by any of those vehicles, the owner becomes liable to compensate third parties who win a liability claim. Aside from third-party liability claims in case of injury, damage, or loss, commercial auto insurance will also cover the legal costs incurred while the lawsuit is ongoing.

Builders risk insurance

Usually provided along with contractor’s general liability insurance, builders risk insurance helps protect builders and contractors from losses arising from stolen or damaged materials and equipment. Such things can happen during a construction project. Subcontractors and equipment owners involved in the project can also benefit from having this type of insurance.

Contractors pollution insurance

Builders are expected to follow strict environmental laws. With the widespread risk of pollution in building operations, contractors continuously face the risk of getting sued by third parties for violating specific environmental regulations. This type of insurance protects builders and contractors from such claims.

Roofers insurance

This type of insurance is like general liability insurance but specifically for roofing contractors whose workers suffer physical injury or property damage while performing their jobs. Since roofers typically work at a certain height, the risk of accidents is higher on top of a structure. Some scenarios can be a worker slipping or getting off-balanced, resulting in a fall or a tool falling from the roof, causing damage to property or injuring another person.

Property in transit insurance

Also known as inland marine insurance, this type of insurance initially provided coverage for transporting goods by water, but it has now expanded to cover valuable goods in transit by land. Suppose you and your workers transport items or data in your vehicles for work-related purposes. In that case, you may need property in transit coverage because this scenario might be excluded from your auto insurance or property insurance coverage.

Commercial umbrella insurance

This coverage type extends your liability coverage to help pay for costs that exceed or are excluded by your general liability insurance or other liability policy limits. Umbrella insurance is not a standalone insurance policy but more of an extra layer of security to augment your existing coverage, if necessary.

These are just some types of insurance coverage you should look into as a contractor. Owning and operating a business comes with inherent risks. Don’t wait for an accident before you decide. It is better to have the necessary coverage and comply with any state regulations requiring specific insurance coverage for contractors.

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.