Cost of Contractors Insurance
Commercial insurance not only protects your business but is required by employers before they can offer a contract to start working.
The price of standard general liability insurance for contractors depends on the area of specialty. It also varies depending on the location, the number of workers, claims history, number of vehicles, and coverage needs.
Contractor Liability Insurance
This insurance protects your business and employees against risks and hazards that come with the job. It gives you peace of mind that should anything go wrong, and your business is covered. For example, if you face a lawsuit or covered damage, your business can be able to bounce back without causing any financial damage to your business.
Are Contractors required to have Insurance?
Generally, it is not a requirement by law for contractors to have insurance. However, should something go wrong, you are personally liable.
It is essential to have insurance as some employers request proof of insurance before contracting a job.
Business Owner’s Policy for Contractors
Most contractors opt for a business owner’s policy, also known as a BOP.
It combines the three basic policies into one plan. It is a simple plan that saves money. The insurances coverages include
General Liability Insurance – if a customer gets injured while at your business, the policy covers the medical expenses associated with bodily injuries. The policy also covers property damage.
Commercial Property Insurance– The policy covers your business property and the contents inside. In this case, the equipment and tools used for your trade.
Business Income Insurance – covers loss of income in the event the business ceases.
Additional Insurance for Contractors
Commercial Auto Insurance
The vehicles used to transport materials or run errands should have this policy. It covers damages caused to your vehicle and third parties.
Workers Compensation
The policy is mandatory in most states, and it covers your employees if they are involved in work-related injuries or illnesses. It covers medical care, lost wages, and compensation in the event the worker dies.
The bottom line is that having contractor’s insurance can determine how soon you bounce back after a setback.