When it comes to running a successful contracting business, it`s important to have the right insurance coverage. There are many types of insurance policies available, each designed to protect you and your business in different situations. In this article, we`ll explore what kind of insurance general contractors need to ensure they have adequate protection.
General Liability Insurance
General liability insurance is a must-have for general contractors. This policy protects your business from claims made by third parties for damages caused as a result of your business operations. This could include property damage, bodily injury, or even advertising injury. General liability insurance will cover the cost of legal fees, settlement or judgment amounts, and any medical expenses incurred as a result of the accident.
Workers` Compensation Insurance
Workers` compensation insurance is required by law in most states. This policy provides coverage for employees who are injured on the job or become ill due to work-related activities. It covers medical expenses, lost wages, rehabilitation expenses, and other related costs. Not having workers` compensation insurance can result in hefty fines and legal penalties.
Commercial Auto Insurance
If your business owns or operates any vehicles, you should have commercial auto insurance. This policy will cover the cost of damages or injuries resulting from an accident involving a company vehicle. This includes liability for injuries to third parties, as well as damage to other vehicles and property.
Professional Liability Insurance
Professional liability insurance, also known as errors and omissions insurance, is important for contractors who provide design, consultation, or professional services. If a client claims that you made an error or omission that resulted in financial loss or damages, this policy will cover the cost of a lawsuit or settlement.
Umbrella Insurance
An umbrella insurance policy can provide additional coverage above and beyond the limits of your other insurance policies. This can be a cost-effective way to increase your overall coverage limits and protect your business from significant financial losses.
In conclusion, general contractors need a variety of insurance policies to ensure they are properly protected. General liability insurance, workers` compensation insurance, commercial auto insurance, professional liability insurance, and umbrella insurance are all important policies to consider. By working with a knowledgeable insurance agent, you can design a comprehensive insurance plan that meets the unique needs of your contracting business.