The Nuts and Bolts of Contractor’s Insurance

A Contractors Insurance Update

The success of your business depends on the quality of your business insurance.  Business insurance is designed to protect your business in the event of an unexpected claim.  We can create a contractor’s insurance program that is designed for your unique operation.  Here are a few of the kinds of contractor’s insurance you need.

  • The basic contractor insurance program should include property, commercial liability, auto, equipment coverage, and excess liability.
  • Contractor’s bonds.  A contractor’s license bond is a license and permits bond that is designed to assist all types of contractors.  In many states, contractor bonds are required, and help ensure that the contractor will operate in compliance with the local statutes as well as laws.
  • As an independent contractor, you may need to have worker’s compensation insurance. Worker’s comp regulations are mandated state by state. If you are in business for yourself, and you do not have employees, you are most likely not required to buy worker’s compensation insurance.
  • Contractor tools/equipment coverage.  Your tools are part of your business; make sure they are insured to full replacement cost.
  • Contractors Errors and Omissions coverage.  Every contractor has this exposure.  If you provide any advice on your job, you have a professional liability risk.
  • Employment Practices Liability (EPLI) coverage.  An EPLI policy covers claims made against directors, officers, employees, the company, and its subsidiaries.  The policy can cover a long list of claims including wrongful dismissal/termination, sexual/racial/disability harassment, sexual/racial/disability/religious discrimination, employment-related libel, slander, defamation, and invasion of privacy, wrongful failure to employ or promote, and retaliation.

Your business needs protection provided by a company and insurance advisor that you can trust.

This information is intended for the client, individual or entity to which it is addressed. These articles contain concepts and opinions, and are not intended to represent the consensus of the insurance or risk community, nor to provide professional legal or tax advice. Please seek professional legal or tax counsel before making any decisions. The information provided does not change or modify any insurance policy, only the actual terms of the in-force policies will govern claim settlements.

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