Any business leader in the contracting industry responsible for hiring independent or regular staff to hire out for projects must be readily prepared in the instance there’s an injury or accident on the job.
Contractors obtaining insurance policies to protect themselves from risk should deem a mandatory part of the position if not least of all advisable. The many projects performed in the industry can subject workers to varied safety hazards putting everyone in harm’s way.
If these are not the direct result of personal negligence, they can occur from someone else not paying attention. The liability insurance coverage for contractors can be confusing when starting out. Let’s look at some common FAQs to make it somewhat more straightforward.
Contractors’ liability insurance, get a quote with this link, can be somewhat confusing, particularly if you’re new to obtaining the coverage. It’s essential to research the varied options to ensure you cover all the bases for the specific work you’ll be performing, and don’t be afraid to ask questions of others in the industry.
It can be most helpful to reach out to peers to learn what they use and what they would recommend for your particular circumstances. Check out these FAQs to offer a few guidelines as you navigate the complexities.
The suggestion is these do comprise the same bundle. With contractor insurance, carriers refer to a “bundling” of policies with relevance to this industry, which will encompass a “general liability” component, but that’s not all involved in this broad category. Let’s move on to explain in greater detail.
The verbiage “contractor insurance” is a heading, if you will, for a category of policies that mean to protect contractors from not only liability but also bodily injury, property damages, and any potential harm possible on a project.
The purpose for using this verbiage is the unique risks associated with this industry as compared to others without the safety concerns. Standard policies under this umbrella include:
- “Builder’s risk”
- Workers’ com
- General liability
- “Inland marine”
The varied policies will always be designed for specificity to a particular contractor’s line of work and their particular needs. Of course, the priority is ensuring that you have general liability.
This will cover you when a lawsuit occurs due to negligence resulting in bodily injury or property damages to another person.
The policy is the most important of any under the construction insurance heading, without which a contractor will not be awarded many commercial projects. In most states, this is a mandatory coverage in order to function as a contractor with the coverage protecting against “third party damages,” whether it be property or bodily damages.
The coverage will further protect a contractor against claims of slander or libel if a competitor brings suit against you for slanderous claims, whether intentional or unintentional.
The policy will afford legal fees and will do so also if you infringe on copyrights with ads from other businesses, including helping to settle the claims.
There are many umbrella terms, even some specific to a craft, but the coverage is designed for the industry overall. Obtaining general liability as a singular piece of that puzzle will only cover your business for “third party damages.”
It doesn’t consider other potential risks, including, perhaps, theft. You will need the entire package.
For example, with the “builder’s risk” arm, you will be protected from fire, theft, or other possible natural catastrophes on the work front, not to mention the structure while the project is ongoing.
“Inland marine” is coverage to protect the project’s needed tools and equipment, the supplies, and materials, while being transported to a site.
The reason for buying a “bundled” package of policies designed to accommodate your specific needs is to avoid paying for coverage you don’t need.
Usually, insurance carriers will offer reasonable, affordable rates with packaged policies under an umbrella-like contractors liability insurance, in a more budget-friendly deal than buying each individually. It makes sense and serves your circumstances.
Karen Evans is a reporter at Wahu Times, focusing on politics, the justice system, immigration, and everything in between. She is based in NYC, and previously was a reporter at the Daily’s city hall bureau.