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Contractor Insurance: It is Essential to Have Enough Coverage

As a contractor and/or owner of a construction company, you often have external factors that are beyond your control. Natural disasters, incompetent subcontractors or workers, unhappy clients or even being the target of random criminal acts can cause damage to your business and your income. Making sure you have sufficient insurance coverage is essential. Below is a simple explanation of some of the insurance coverage options for contractors we offer. 


Contractor Insurance Coverage Options:

 General Liability Insurance

Construction sites have a higher risk of bodily injury and property damage than many other businesses. General liability insurance can protect you from:

  • Third-party property damage
  • Third-party bodily injury
  • Claims of slander and libel 
  • Damages caused by your completed construction

 General liability insurance can cover the cost of third-party medical bills, and property repair or replacement costs. It can also help cover the costs of any potential lawsuits.

 

Workers' Compensation Insurance

Workers' compensation insurance covers medical expenses and lost wages for your employee if they have a job-related injury. Many commercial contracts require a construction business or contractor with least one worker to have this coverage. Construction is a physically demanding industry with inherent risk for injuries and without worker’s comp, you could be hit with the high cost of medical bills and lost wages. Workers' compensation insurance protects you, your company, and your workers by covering those expenses.


Commercial Automobile Insurance

A vehicular accident is expensive, especially if there are injuries. A commercial auto insurance policy can cover medical bills, lawsuit expenses, and residential or commercial property damages.


Builder's Risk Insurance

Course of construction insurance or builder’s risk insurance is a specialized type of property insurance that helps protect buildings under construction. It can help pay for damages from:

· Fire

· Lightning

· Weather

· Theft

· Vandalism

It also helps protect:

  • Materials
  • Supplies
  • Equipment on site, in transit or at other locations


Professional liability insurance 

Mistakes can happen even to an expert contractor. Regardless if you did or did not make a mistake, if your client believes you did, they can sue you. Professional liability insurance, also known as errors and omissions insurance (E&O), helps protect your construction business from lawsuits over the quality of your work or services provided. Professional liability insurance covers the cost lawsuits whether you were at fault or not.

 

Pierson and Fendley Insurance can help you find the right coverage so you can avoid overpaying for policies that aren’t tailored to your needs. As an independent insurance agency, we have access to several companies that allows us to create customized solutions.  Contact one of our helpful team members about your specific insurance needs.