6 Must-Have Handyman Insurance Policies

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6 Must-Have Handyman Insurance Policies

As a handyman business, it’s essential to have the right insurance in place for peace of mind and financial security.

Make sure you consider all aspects by looking into these six coverage options important for any home-services provider! General liability is just the starting point; workers’ compensation can help protect your employees from workplace injuries or illnesses, while commercial auto coverage takes care of vehicles used on company time – plus three more policies that cover those hard-to-be-prepared situations.

Get your protection locked down now so you’re ready should something unexpected come up later!

handyman insured for concrete work

handyman working in concrete with insurance policy protection

1. General liability insurance – The must-have handyman insurance coverage

General Liability coverage is the most essential business owner’s policy for handymen and construction businesses. This type of insurance can cover a variety of claims, including bodily injury, property damage, and advertising injury.

If a handyman’s work causes any kind of harm to another person or their property, General Liability Handyman Insurance can provide the financial protection needed to protect against such claims. Not only does it protect handyman contractors from legal costs associated with settling a claim, but also from possible financial ruin if that claim was to exceed the handyman’s assets.

Minimum Coverage Requirements

Handymen should have at least a minimum of $500,000 in basic general liability coverage. This will give them the protection they need if someone were to sue them for damages or injuries related to their work.

Additional Coverage Options

Personal and advertising injury protection can also be added to a handyman insurance policy, depending on the specific needs of each business. Personal injury protection provides additional financial protection against claims that may arise if a handyman’s work causes someone emotional distress while advertising injury protection helps cover libel, slander, or copyrighted material infringement claims related to promotional materials distributed by the handyman’s company.

Avoid Expensive Mistakes

Working without any kind of handyman insurance can be an expensive mistake. Not only could it result in costly settlements and/or penalties, but it also exposes handymen to potential lawsuits with no protection if they are found liable for an accident or injury caused by their work. Furthermore, some construction sites require contractors to carry certain levels of handyman liability Insurance before allowing them on the premises. Failing to meet these requirements can lead to hefty fines and/or loss of contract opportunities down the road.

Overall, having proper handyman liability insurance is essential for any handyman business looking to remain successful over the long term since it not only shields them from potential liabilities but also helps ensure that they can continue providing quality handyman services with confidence into the future.

In conclusion, a handyman liability insurance policy is a must-have for handyman businesses as it not only helps protect against losses related to accidents or injuries but also gives handymen peace of mind knowing that if something were to happen while on the job they would have some form of financial backup plan in place.

Pro Tip: Be Aware Of These Exclusions

  • Professional Services: Most policies exclude coverage for professional services such as supervision, inspection, quality control, and architecture are not covered and if something goes wrong; unfortunately your policy will not be able to help you.
  • Damage to property: Coverage does not provide coverage for claims made against your business due to damage or destruction of property owned by the business.
  • Contractual Liability: If you are sued by someone who you have a contract with, your insurance will not cover those damages. This is an important exclusion to be aware of, as it can leave you liable for any damages that may be awarded in a lawsuit.
  • Limited Coverage for Advertising Injury: Finally, another exclusion to watch out for is that it has limited coverage for advertising injury. This means that if you are sued because of something you said or wrote in your advertising, your insurance will only cover a portion of the damages. This is an important exclusion to be aware of, as it can leave you liable for a significant amount of the damages that may be awarded in a lawsuit.
handyman with general liability insurance fixing kitchen sink

handyman protected by general liability insurance while fixing a kitchen sink

2. Commercial auto insurance – protecting your vehicles from accidents or theft

Having business vehicles for a handyman business means that you need the appropriate commercial auto insurance. This type of insurance is essential to protect your business from any damage or loss caused by accidents, theft, or other unfortunate events. Not only does it keep your business safe and secure, but it ensures that all business purposes are covered under the policy.

Understanding your options

When choosing a commercial auto policy for your handyman business, it’s important to understand all the available options and determine which ones best meet your needs. For example, Comprehensive coverage protects handymen from losses due to events other than an accident such as fire, theft, or vandalism. Uninsured/Underinsured Motorist coverage can help offset costs associated with an accident involving another driver who does not carry enough coverage to pay for damages incurred by the handyman’s vehicle. Additionally, Personal Injury Protection (PIP) pays for medical expenses related to bodily injury caused by an automobile accident regardless of fault.

Having the right coverage in place helps handymen protect themselves financially against unexpected incidents involving their vehicle(s). Understanding all available coverages and selecting those that best meet your handyman business’ needs will ensure you’re properly protected in case of an emergency. Don’t let insufficient protection leave your handyman business vulnerable; make sure you have adequate commercial auto insurance in place today!

Kandymen should have auto insurance to protect against car collisions

Auto insurance critical for handymen in case of car accidents

Top 5 Commercial Auto Insurance Options

1. Liability Coverage

Liability coverage is the most basic type of coverage available for commercial auto insurance. This type of coverage protects you from financial responsibility if your vehicle causes damage or injury to another person or property.

2. Collision Coverage

Collision coverage helps to pay for repairs to your vehicle if it is damaged in an accident. This type of coverage is typically optional but may be required by your lender if you have a loan on your vehicle.

3. Comprehensive Coverage

Comprehensive coverage helps to pay for repairs to your vehicle if it is damaged by something other than an accident, such as theft, fire, or vandalism. This type of coverage is typically optional but may be required by your lender if you have a loan on your vehicle.

4. Medical Payments Coverage

Medical payments coverage helps to pay for medical expenses incurred by you or your passengers in the event of an accident. This type of coverage is typically optional but may be required by your state.

5. Uninsured/Underinsured Motorist Coverage

Uninsured/underinsured motorist coverage helps to pay for damages caused by an uninsured or underinsured driver. This type of coverage is typically optional but may be required by your state.

Handyman auto insurance protects against car theft and accidents

Auto insurance for handymen protects against car break-ins and accidents

3. Inland marine coverage in handyman insurance policy: protects your tools wherever you go

The tools and equipment used by handymen form an important part of their business. As such, it is essential to have coverage in place to protect them against theft, damage, or other losses. Inland marine insurance is specifically designed for this purpose and provides tools and equipment coverage to help safeguard the livelihood of a handyman.

Whether they are transporting their tools to a job site, operating in remote locations, or simply storing them away in the garage, handymen need a comprehensive insurance policy to protect their investments no matter where they are.

The term “inland marine” refers to physical property that insures damage or theft when transported over land or water. It can also be used to protect handymen’s tools and equipment when stored in offsite locations such as warehouses, garages, and job sites.

This type of coverage is important for handymen because it covers losses caused by unexpected events whether your tools were on-site with you or at an alternate location.

Inland marine insurance typically provides handymen with protection against a variety of risks such as fire, vandalism, theft, and other perils. Depending on the policy you choose, this coverage may also include extra benefits like replacement costs for damaged items and liability protection if someone is injured while using your tools.

Having the right equipment insurance is essential for handymen So don’t leave your equipment unprotected–make sure you have an adequate inland marine policy in place today!

Inland marine insurance protects handymen's tools on the job

Handyman with inland marine insurance for protection of tools on the job

4. Workers’ compensation insurance – protecting your employees from injury or illness

Whether you operate independently or hire employees, workers’ comp is an important business owners policy designed to protect handymen and their employees from injury or illness sustained while performing their duties. It covers medical costs, lost wages, and other costs related to unexpected illnesses or injuries that may occur on the job. The goal of workers’ comp is to provide handymen and their employees with financial security if an unforeseen accident happens while on the job.

Covering costly medical bills

Having workers’ comp in place is essential for handymen because it can help cover medical bills associated with workplace accidents, rehabilitation costs, and even financial losses caused by temporary or permanent disability. In some cases, handymen may also be able to cover lost wages if an employee cannot work due to injury or illness sustained while performing his/her handyman duties. In some states, this type of insurance may even provide death benefits to family members of a handyman employee who dies as a result of a workplace accident.

Potential legal actions against you

Unfortunately, many handymen are unaware of how important it is to have adequate workers’ compensation coverage in place. Without proper coverage options, handymen could be held liable for all medical bills and other expenses related to any work-related injury or illness which could prove costly for their business over time. Furthermore, failing to secure the necessary coverage can put handymen at risk of legal action from injured employees or their families if they attempt to collect damages from an uninsured handyman business.

State Ran Program Options

Fortunately, obtaining workers’ compensation coverage is easy; most states have programs available for small business owners that need assistance getting started with the process. By understanding your state’s policies and requirements you can make sure your employees are covered should something happen during their handyman duties. Protecting your handyman business and its employees through Workers’ Comp will give you peace of mind knowing you have done your best to keep everyone safe!

Top Inland Marine Exclusions

  1. Defective material or workmanship
  2. Losses resulting from the insured’s intentional acts or omissions
  3. Property damage due to war, hostilities, or nuclear risk
  4. Losses from the ownership, operation, maintenance, or use of any aircraft or watercraft
  5. Pollution and contamination
  6. Losses caused by governmental action, orders, regulations, or insurance
  7. Losses arising out of any dishonest acts committed by anyone associated with the insured’s business
  8. Losses caused by wear and tear, deterioration, atmospheric conditions, vermin, mold, insects or animals
  9. Losses due to confiscation, seizure, detention, and destruction by order of a governmental authority.
Workers compensation insurance protects handyman and employees on the job

Workers compensation insurance crucial for handymen and employees on the job

5. Professional liability insurance – covering any errors or omissions and advice given by your business

Professional liability insurance is an important policy that covers any errors or omissions in the advice given by handymen as part of their business operations. It is designed to protect handymen from any financial losses resulting from not providing accurate, professional advice to customers.

Are you providing consulting and/or advisory services to any projects or homeowners?

This type of insurance is especially important for handymen since they provide service and advice related to home improvement projects. In addition, handymen are often consulted on the cost of materials and labor associated with a project and they must be sure to make accurate estimates to avoid any potential legal disputes or costly lawsuits that could arise if a customer feels they have been wrongly advised. In addition to covering potential financial losses incurred due to negligence in the advice given by handymen, this type of insurance also provides handymen with protection against libel, slander, and other types of insurance claims.

Combatting the worries of legal accountability

Professional liability insurance can often cover legal fees and damages awarded to the customer if they are successful in their lawsuit against the handyman. This can provide handymen with valuable protection so that they can operate their businesses without fear of being held liable for any mistakes made on the job.

Examine your options and make an educated decision.

While professional liability coverage can help provide handymen with much-needed protection, they need to understand exactly what their policy covers and how it works before signing up for coverage. To ensure maximum coverage, handymen should research various policies available and compare different levels of coverage offered by each company before deciding which policy best meets their needs. By doing this, handymen will have peace of mind knowing that if anything unexpected happens—they won’t be left holding the bag financially!

Handyman with professional liability insurance protected on the job

Professional liability insurance essential for protecting handymen and their business on the job

6. Handyman Bonds – Protecting Your Business with a Quality Bond

Bonds are essential for protecting businesses against potential losses and liabilities that may be incurred due to the Handyman’s failure to meet the terms of an agreement or contract. These bonds typically guarantee projects will be completed on time, within a specified budget, and by the job specifications.

Contract Coverage:

A construction bond is a type of surety bond that provides coverage for any breach of contract by a contractor or subcontractor. If the contracting party fails to fulfill their obligations as stated in the contract, then the surety provider can step in and cover any financial damages or losses incurred by the client. The bonding insurance company agrees to pay out a certain amount of money if they determine that there has been a breach of contract on behalf of the contractor.

Attracting More Customers:

In addition to protecting against potential losses due to non-performance or malfeasance by contractors or subcontractors, having a surety bond in place can also help attract more business from bigger clients who prioritize working with trustworthy contractors only. A surety bond signals strength and reliability which gives clients additional peace of mind about hiring you for their projects.

Choosing an insurance agent with a focus on construction is critical:

When shopping for contractor bonds it is important to make sure you work with experienced professionals who understand your specific needs and know how to get you set up with the right solution that fits your budget without compromising on quality coverage. It is also important to find providers who offer competitive rates without sacrificing service quality since most contractors don’t need coverage for an entire year but only for certain projects/periods throughout their careers as independent contractors or subcontractors.

Calculating The Costs?

The cost associated with getting bonded varies depending on several factors such as the type and scope of work being performed, size of the project, number, and complexity of contracts, financial stability and creditworthiness of the applicant, prior claims history (if any), and other factors determined by underwriters at bonding companies. Generally speaking, contractors should expect to pay between 1-5% of their total yearly contract volume when obtaining contractor bonds.

Investing in your future:

By taking all necessary steps towards becoming bonded, you are making an investment in your future success as well as that of your clients who rely on your skill set and expertise when selecting you as a service provider.

Attract More Confident Clients:

By investing in quality contractor bonding services you can demonstrate your commitment not just towards completing projects but also towards meeting high standards of ethical conduct and professional integrity which is essential for gaining trust amongst clients and building a reputation over time among fellow professionals in your industry sector.

Popular Bond Types for Handyman

  1. License/Permit/Other Compliance Bonds
  2. Surety bonds
  3. Performance Bonds
  4. Payment Bonds
  5. Maintenance Bonds
Being bonded is essential for handymen to protect themselves and their clients on the job

Handyman bonding insurance protects against unexpected issues on the job

Consider These Tips Before Purchasing Your Next Policy!

Tip 1: Attention Online Shoppers: Be Cautious!

Before making an online purchase of insurance, it is essential to understand the coverage and security your policy provides. To ensure you get comprehensive protection for all that your business requires, be sure to consult a knowledgeable and reliable insurance agent and never purchase anything.

Tip 2: Is The Agent Knowledgeable About Handyman Insurance?

Research insurance companies that specialize in the construction, handyman work, and contractor industries. Consider their years of experience and customer satisfaction ratings.

Tip 3: Find Savings Through Bundling

If you’re looking to save on insurance costs, inquire about any discounts or bundle offers available. For instance, consider an umbrella policy that combines general liability and professional coverage into one package for extra savings!

Tip 4: Watching Out For The Hidden Exclusion

Make sure to take your time and read every detail of the paperwork before signing any document. Ensure that you thoroughly comprehend all exclusions, deductibles, limits, etc., before making a definitive choice on which insurance company is right for you.

Handyman with complete insurance coverage protected on the job

All-inclusive insurance crucial for handymen to protect themselves and their business on the job

Save money and avoid costly lawsuits by purchasing the right small business insurance for your handyman businesses

When it comes to protecting your handyman business, having the right insurance coverage is essential.

It is important to purchase the right type of small business insurance for your handyman business. Not only does it protect your tools, materials, and reputation, but it can also help you save money in the long run by protecting you from costly lawsuits or accidents that happen on the job.

When you decide to purchase coverage for your handyman business, look for an affordable policy that covers the types of risks you face as a professional. Make sure to research different policies and compare quotes so that you can determine which one offers the most comprehensive coverage at a reasonable price. Additionally, purchasing multiple policies may be worth considering if doing so offers better protection than one single policy would.

With the right insurance policies, you will be well protected from potential liabilities. Having the peace of mind that comes with a comprehensive insurance policy for your handyman business can help you focus on serving your customers and growing your business without worrying about unexpected financial costs or legal trouble. Investing in proper coverage for your handyman business is an important step toward success.

Right business insurance crucial for handymen to protect themselves and their clients on the job

Having the right business insurance ensures protection for handymen and their clients on the job

Unlock the protection your business needs by starting a proper insurance plan today!

At Citizens General Insurance Brokers, we understand the importance of finding the best handyman insurance companies that offer tailored options to meet your specific business needs. We have been in the industry since 2011 and are proud to save our clients money by connecting them with the best handyman insurance providers for their situation.

Our team of knowledgeable professionals that specialize in Cons can help you compare various policies so you can make an informed decision when choosing your insurance provider. With our expertise and assistance in the construction space, you can be confident that you will be getting the right coverage at a price that fits within your budget.

Don’t wait any longer – Get your Handyman Insurance quote today call us at 800-498-0884 for a Free over the phone quote!

 

Construction Insurance

5 Ways to Get Lower Rates on Your Contractor Insurance

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Independent contractors and small business owners know that the best way to improve cash flow is to bring more cash in, and pay less out. Sounds simple enough, but the costs of doing business can’t always be negotiated down.
One way you can reduce your operating costs is by lowering the rates you pay on your contractor insurance.

Here’s how to pay less, without giving up coverage.

#1. Review Your Current Coverage

The first place you can look to lower your insurance rates is on the policies that you already carry. If you have fewer employees, have sold equipment, or have retired vehicles from use, you may be able to find potential savings in your current policies.

Be on the look out for these changes:

  • Employee roster
  • Equipment bought or sold
  • Vehicles no longer in use
  • Type of construction work performed

Any changes in your business could mean a lower rate is available. Examine your existing policies, or talk to your broker to see where you can save money on your existing coverage.

#2. Calculate Before a Claim

Before you file a claim, take a quick moment to calculate and consider…

Can you afford a minor loss?

The number of insurance claims you file can impact the rate you pay. If you are considering filing a claim for a small incident, ask yourself if you can afford the loss.

If the answer is yes, you may save more money in the long run with lower contractor insurance premiums.

If your favorite hammer was stolen from the bed of your truck on the way to work, you can probably replace it without a claim.

If you were involved in an auto accident on your way to the jobsite, and you are facing vehicle damage, lost and damaged equipment and tools, and possible injuries to yourself, an employee, or a third-party…

Make the claim.

One way you can reduce your operating costs is by lowering the rates you pay on your contractor insurance.

Here’s how to pay less, without giving up coverage.

#3. Increase Your Deductibles

If you decide that paying out of pocket for small losses is an affordable option to prevent premiums from increasing, the next logical step is to increase the deductibles on your policies.

Take the biggest deductible amount you can afford.

Usually, a higher deductible means a lower premium rate.

The amount you save in annual premiums may be more than enough to cover your higher deductible when you finally do need to file a claim for a big-ticket loss.

#4. Don’t Let Coverage Lapse

Construction can sometimes be a seasonal profession, and it could be tempting to let certain coverages go in between projects, or during off-seasons.

If you want to save money, don’t do that.

Letting coverage lapse can actually lead to increased rates. It can also put you at risk for not getting coverage in the future.

Many insurance companies offer premium discounts for no-lapse coverage.

Determine the best policies that you need for your contractor business, and keep your policies active. Stopping and starting policies won’t save you money, and it can cost you even more in the long run.

#5. Combine Coverage

If increasing cash flow and protecting your profits is a priority, then there is a very good chance that you will use more than one contractor insurance policy to protect your business. And that gives you one golden opportunity to save some money with very little effort.

Combine your coverage.

Most insurance companies will offer a discount to you when you combine, or bundle, your coverage. Combine a general liability policy with an inland policy, for example, and you receive a discount on the premiums for both.

Talk to your broker about the ways you can bundle coverage on:

Saving money on your insurance rates gives you more cash flow for your business. And who doesn’t want to see more cash?

Remember…

Combine your policies together, review them regularly to make sure they fit your current business needs, increase your deductibles, don’t make claims for the small stuff, and be sure to maintain your coverage at all times.

Contractor Insurance Quote

7 Hidden Dangers that put a Contractor’s Tools & Equipment at Risk

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What good would you be without your tools and equipment? Like a dentist, surgeon, or chef, a contractor needs a special set of tools to get a job done.

As a contractor, you probably put a lot of thought into selecting the right tools for the job. But how much thought have you given to protecting your tools, outside of picking out a box for your truck?

Here are 7 hidden dangers that can put your tools at risk, slowing your progress and sinking your profits.

1. Unmarked tools

Marking your tools and equipment with a permanent identification, such as your name, business name, and business phone number, will make it harder for stolen items to be pawned or sold online, and easier for them to make their way back to you.

A permanent marker will get the job, but engraving your information on a high-value tool will be far more effective.

2. Unsecured tools

Leaving tools unsecured, even for a second, is asking for trouble.

Maybe it is a couple of items you’ve tossed in the bed of your truck while you drive a few blocks down the road. You’ve done it a hundred times and nothing bad has ever happened.

Except this time, something falls out of the bed of the truck. This time, something falls off of the trailer. Or maybe someone grabs your new saw while you run into the gas station for a Red Bull.

It just takes a bump in the road, or a dishonest citizen to ruin your day. Lock it down, either in the cab, in the shell, or in a box.

3. Placing too much trust in your Toolbox

Sure, you invested a good chunk of change into your saddlebox. It’s mounted well onto your truck. It’s made from stainless steel. You feel good about its ability to protect your equipment.

But even a drill resistant lock won’t deter someone who really, really wants to get at what’s inside.

Toolbox locks can be busted, the box itself can be hacked to pieces, or in an extreme circumstance, cut from the truck itself.

Don’t fall into a false sense of security that your toolbox is foolproof. It may be a very strong deterrent to theft, but where there is a will… there is usually a way.

Covering your tools and equipment with your contractor insurance will provide you with the ultimate safety net in this worst-case scenario. If your most valuable business assets are stolen, you won’t have to pay out of pocket to replace them yourself.

4. Not tracking Tools

Who’s got what? On a busy project with a few extra employees, do you know who has your stuff?

Tracking your tools is the easiest way to make sure that nothing accidentally goes home with one of your guys, or gets left behind on the site at the end of the day.

Try embracing new technology and using a digital, cloud-based tracking system that you access from your smartphone. Super easy, and accessible to everyone.

5. Well-meaning Employees

Sure, they mean well. But when an employee is not financially invested in the tools and equipment they are using, they may be a little less attentive and careful as you would be.

Your best guy could show up at work and swear that he had your new cordless with him when he left his house, but has absolutely no idea where it is right now at this moment. He only made one stop at Johanna’s Deli on the way to work…

Lost or stolen, it doesn’t matter. It’s gonna cost you either way.

6. Drivers on the Road

Teens texting. Moms with DVDs playing and kids yelling in the back seat. Distracted commuters with a coffee in one hand and the car radio dial in the other.

You are rarely more vulnerable in life than when you are on the road.

If you are transporting your tools and equipment to a project in your truck, van, or trailer, an unintended accident could seriously damage important equipment. Broken equipment won’t do you any good, and the cost of replacement and repairs could be huge.

7. Unsecure Jobsites

Your project site is an alluring place to the neighborhood kids and teens after dark. And you know it, because you’ve seen the evidence for yourself: garbage left behind, graffiti, or worse…

Don’t leave a jobsite vulnerable when you leave at night. Secure tools and equipment in a lock box or container to protect it from troublemakers that can’t seem to stay away from your project after hours.

The Best Way to Protect Your Tools and Equipment

No matter what you do, your most valuable assets are at risk on the project site and off. Since your job requires you to transport your tools to and from projects at different locations, they are even more vulnerable to loss, theft, and damage.

When locked boxes and careful accounting of equipment fail, the right contractor insurance will still have your back.

Inland marine is a special form of insurance that will cover your tools and equipment as they are in transit to your projects. It also covers blueprints, plans, and other essential documents, too. Since you spend so much time transporting your tools from one site to the next, inland marine is a must-have policy that protects you from theft, loss, and damage that can occur along the way.

contractor insurance quotes

Contractor Insurance Checklist

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Contractor insurance can cover just about every aspect of your trade, protecting you, your business, and your assets from unexpected (and costly) events. From an unintended auto accident to an unhappy customer or an injured employee, contractor insurance defends against the risks that could permanently put you out of business.

Because every accident, incident, and act of nature is an opportunity for a lawsuit or monetary loss that could bring down everything you have worked so hard to build.

Contractor Insurance Checklist for General and Subcontractors

Whether you’re a general contractor, subcontractor, or construction business owner, your investment is at risk. One single accident or incident could cost you everything.

Luckily, you can easily defend your construction business with the right insurance coverage. So you can keep blazing ahead, building your future.

Use this checklist to find the contractor insurance policies that you simply can’t afford to ignore.

General Liability

In today’s litigious society, any small accident or incident could result in a lawsuit. Which is why general liability insurance should be the foundational policy of any contractor insurance coverage.

General liability protects you from third-party lawsuits in the event someone has experienced injury, bodily damage, or property damage as a result of your business.

The legal costs for litigation averages anywhere from $3,000 to $150,000, according to a 2005 SBA report.

A general liability policy for your business can cover the costs of a lawsuit that could cost your business in legal fees, lawyer’s fees, settlements, judgements, and even the high price of business interruption. When you have general liability coverage, your out of pocket expenses are typically the cost of your deductible — far less than the cost of litigation.

Inland Marine

The equipment you invest in doesn’t stay in one spot. Protect your mobile tools and equipment with inland marine insurance.

As you move your tools and mobile equipment from one project site to the next, the risk for damage or loss increases. Luckily, inland marine coverage goes where your equipment goes. Like the power tools you take to the construction site.

Workers’ Compensation

Do you use subcontractors to get the job done or do you have employees? Even a single, part-time worker could mean you need workers’ compensation insurance.

The construction industry is a high-risk one. Your employees are more at risk for illness or injury than the barista who made your coffee this morning. A slip, fall, or other accident could mean lost wages and costly medical bills for your employees.

Workers’ comp protects your employees from the high costs of medical treatment and lost wages in the event they’re injured or become ill while performing their job. Providing workers’ comp insurance is not only the right thing to do for your employees, in most states it is also required by law.

Commercial Auto

A contractor’s vehicle has many roles to fill. It’s a satellite office, a break room, a tool shed, and an equipment transporter. Your work truck (or van or suv) may even pull double-duty as your personal vehicle during the weekend; towing your family boat, picking up groceries, or taking the little league team out for ice cream after the game.

But don’t expect your personal auto coverage to work as hard as your truck does.

If you’re involved in an accident or have an auto claim while using your vehicle for business purposes, your personal auto coverage generally won’t cover it.

You’ll typically need commercial auto if you want to cover:

  • Autos used primarily for business purposes
  • Autos that are registered or leased to your business
  • Autos that your employees are driving

Don’t rely on personal auto insurance to protect your work autos from the risks of the road; commercial auto insurance is an important policy for contractors who spend more time out in the field than sitting in an office.

Commercial Property

Do you own or rent the building your construction business uses for your day-to-day operations? Either way, commercial property insurance is your key to defending it.

  • If you rent, commercial property can protect the stuff that’s inside your building, such as equipment, furniture, materials, and supplies.
  • If you own, commercial property can protect the building itself as well as the stuff that’s inside it.

No one ever plans for a fire, busted pipe, storm damage, theft, or vandalism. But with commercial property, you won’t have to pay the price for damage or loss to the place and things you need to operate.

Tip: Running your construction business from home? Even home-based businesses need a little extra property coverage. A standard homeowners insurance policy won’t always fully cover the business tools and equipment that you’ve got at home. Ask your insurance professional about a rider to your homeowners policy to protect your business investments.

Builders Risk

This one’s for the general contractors. A builders risk insurance policy protects your investment in a project during the course of construction, which is why it’s also referred to as a course of construction policy.

If a fire broke out on a residential project and destroyed the work you had already completed, as well as some valuable tools kept onsite and materials you’d already purchased, builders risk would be there to help you recoup your loss.

Builders risk policies are typically project specific and written on a 3-month, 6-month, or 12-month term. The coverage remains with the project until construction is completed.

Tip: There are any number of parties with an “insurance interest” in a project – including subcontractors, engineers, or anyone else who could lose out on labor, materials, supplies, and potential profits if there was a loss during construction. Builders risk policies are generally obtained by a project owner, developer, or general contractor who will list anyone with an insurable interest as a “named insured.”

General contractors should consider this policy as part of their contractor insurance checklist, but subcontractors should remember that they’ll want to be included as a named insured on any builders risk policy taken out by a general contractor or project owner.

Umbrella Coverage

Extra coverage is often overlooked but an umbrella policy could be one of the most important contractor insurance policies available. Umbrella insurance is there to protect you in the event of a claim that exceeds your policy limits.

Imagine the worst case scenario. An accident leads to severe third-party injuries and a lawsuit. The final result is a million dollar claim for court costs, judgements, and medical bills against your general liability policy. Your policy limit is only $500,000. Which means you’re left footing the bill for the other half a million.

Umbrella insurance can be applied when a covered claim exceeds the limits of an eligible underlying policy, like a general liability policy.

In the example above, your general liability policy would cover the million dollar claim up to its limit – $500,000 — and then your umbrella insurance would kick in to cover the remaining half a million dollars.

And all you’ll be responsible for is the cost of your policy deductibles.

How many of the above business insurance policies do you currently carry?

Chances are, you may have just discovered some holes in your contractor insurance defense plan. When you’ve worked hard to build up your construction business you want to protect it completely. Compare this checklist to your current insurance protection. If you’re missing any of the policies listed above it may be time to fortify your defenses so you can keep building your business without worry.

Contractor Insurance Auburn, CA