Working as a contractor entails a certain amount of freedom as it allows you to move between sites and jobs. However, you never quite know what kind of a situation you might find yourself in and cannot anticipate all the risks. Furthermore, contractors are often in uniquely dangerous situations. To adequately protect your livelihood and ensure an accident does not eat up all your savings, you need insurance. 

Contractors’ insurance benefits people in many professions. However, due to the sheer amount of different insurance policies out there, it can be hard to know where to begin. Keep reading to learn how your business could benefit from contractors’ insurance and how to find the best deal on the market.

Who Needs Contractors’ Insurance?

Contractors, subcontractors, and independent tradespeople can all benefit from getting contractors' insurance. The insurance protects their businesses and is often required by employers. Here is a list of some of the professionals who should consider purchasing it:

• Carpenters
• Construction workers
• Electricians
• Handymen
• HVAC contractors
• Landscapers
• Painters
• Plumbers
  

Many of the above trades can choose a policy geared to their specific needs. The basic coverage of most of these insurance policies is broadly the same, but there are some different options depending on the trade-specific risks the specialists encounter. For instance, a roofing contractor might be more likely to be sued for property damage than a landscaper. Always ask your insurance provider whether they have a specific policy for your business.

What Does Contractors’ Insurance Cover?

Since it is necessary for a diverse range of businesses, insurance companies offer many different variations of it. However, as mentioned, the most basic coverage tends to be the same:

• General liability, also referred to as commercial liability insurance, covers any third-party bodily injuries and property damage, including the injured’s medical bills, cost of repairs, legal fees and settlement costs. It might even cover funeral expenses following a fatal incident. Often, libel and slander are also covered, so if you are sued for making a false statement about a client or another company, you will be protected. 
• Inland marine coverage covers mobile machines and equipment while in transit. 

Other Insurance Contractors Should Consider

In addition to standard contractors’ insurance, there are several other insurance policies available on the market. These can be bought to cover more events and claims:

• Commercial auto covers any vehicles used by a contractor to get to work or transport equipment. The policy should also cover any equipment attached to the vehicle, but not the equipment carried inside the vehicle.
• Products-completed operations covers property damage and bodily injury caused by the malfunction of your finished work due to faulty workmanship. For instance, if you construct a garden wall but in two weeks it falls over because of improper foundation and damages the client’s garden, you will be covered.
• Workers’ compensation insurance is useful when you have employees working alongside you. Workers' compensation covers medical fees and legal costs for any injuries or illnesses suffered on the spot or acquired over time due to the job.
• Contractors’ tools and equipment insurance covers the repair and replacement of your tools and equipment if they are stolen, lost, or damaged.
• Professional liability insurance covers you if you make a mistake that results in faulty work or damage to a third party. 
• Builders’ risk insurance is specific to builders. It will cover any damage a structure receives while still under construction, such as fire and vandalism.
• Umbrella liability is used to expand the limits of other coverages.

There are also coverage enhancements and endorsements that can further tailor your insurance policy to your industry. These include:

• Expanded property damage
• Limited pollution coverage
• Contractors’ errors and omissions
• Waive of subrogation
• Pre-project aggregate limit

For more detailed information, discuss your options with an insurance agent or broker.

How to Save Money on Contractors’ Insurance

Picking out insurance can feel overwhelming and that can lead to people putting it off until it is too late. However, in the event of an accident or incident, you will be glad you have it. To choose a policy and save some money on it, consider these tips:

• Bundle policies – By bundling policies with one insurance company, you can earn a bundle discount, significantly reducing your overall insurance costs.
• Shop around – Do not settle for the first quote you receive. Each insurance company calculates risk and costs in a different manner. It is beneficial to request quotes from multiple insurance agencies to find the best deal on the market.
• Do not make frivolous claims – Your history of claims is a crucial part of your insurance evaluation. In the eyes of the insurance company, the more claims you have made in the past, the more likely you are to make claims in the future. Therefore, consider whether a claim is worth the resulting increase in your premiums.
• Increase your deductibles – By increasing your deductibles, you will decrease your premiums. However, in the event of a lawsuit or claim, you will need to cover everything out-of-pocket.
• Lower your risk – Demonstrating dedication to safety, both in high-quality equipment and sound procedures, will lower your risk when out performing your work. When insurance companies see that, they can offer lower premiums.

It is helpful to talk to an insurance agent if you are not yet sure what you need or want. Contact our experts over email or phone or fill the free quote form on our website to find the best contractors’ insurance for you.