Contractors

Business Insurance and Employee Benefits for Contractors

Essential Business Insurance

General Liability Insurance

Covers third-party bodily injury and property damage
Protection against accidents at job sites
Coverage for completed operations claims

Commercial Auto Insurance

Covers vehicles used for business purposes
Protection for tools and equipment transported in vehicles
Liability coverage for accidents during work-related travel

Workers' Compensation

Required in most states when you have employees
Covers work-related injuries and illnesses
Particularly important due to physical nature of contracting work

Contractor's Equipment Insurance

Protects tools and equipment from theft, damage
Coverage for both owned and rented equipment
Can include mobile equipment like forklifts or generators

Builder's Risk Insurance

Covers projects under construction
Protection against damage from fire, weather, vandalism
Usually purchased for the duration of specific projects

Professional Liability Insurance

Covers errors or omissions in your work
Protection against claims of negligence
Important for contractors providing design services

Commercial Property Insurance

Protects your business location and contents
Coverage for materials and supplies in storage
Protection for office equipment and furnishings

Surety Bonds

Required for many contracting jobs, especially government work
Guarantees project completion according to contract terms
Different types available based on project requirements

Recommended Employee Benefits

Health Insurance

Comprehensive medical coverage
Options for family coverage
Consideration for higher deductible plans with HSAs

Retirement Plans

401(k) or SIMPLE IRA plans
Employer matching when feasible
Retirement education resources

Disability Insurance

Short-term and long-term disability coverage
Critical for physical work that could lead to injury
Income protection during recovery periods

Life Insurance

Group term life insurance
Options for additional coverage
Dependent coverage options

Paid Time Off

Vacation days
Sick Leave
Weather-related contingency days

Tool Allowances

Annual budget for personal tools
Tool replacement programs
Safety equipment provision

Training and Certification

Support for licensing requirements
Continuing education
Advanced skills training

Additional Considerations

Umbrella insurance for extended liability protection
Pollution liability for contractors dealing with hazardous materials
Inland marine insurance for goods in transit
Employment practices liability insurance (EPLI) to protect against claims of discrimination or wrongful termination

FAQ

Are there specific insurance options for contractors?

Yes, there are insurance policies tailored to meet the unique needs of contracting businesses. Some common policies include general liability insurance, professional liability insurance, equipment floater, workers' compensation insurance, and commercial auto insurance.

Do I need workers' compensation insurance for my contracting business?

Workers' compensation insurance is often a legal requirement, depending on your location and the number of employees you have. It provides coverage for medical expenses and lost wages if an employee gets injured on the job. You could be exposed to financial penalties if you do not have workers compensation coverage.

How much coverage do I need?

The amount of coverage you need depends on the size of your business, the types of projects you undertake, and the risks involved. It's essential to assess your potential liabilities. Consult with us so we can help to determine the appropriate coverage levels you need.

How can I lower my insurance premiums?

To potentially lower your insurance premiums, you can consider bundling policies, increasing deductibles, implementing safety measures, maintaining a good claims history, and shopping around for competitive quotes from different insurance providers.

Is it necessary to have insurance even if I am a sole proprietor?

While it may not be legally required for sole proprietors in some jurisdictions, having insurance is still highly recommended. Insurance protects your personal assets and offers a safety net for unforeseen accidents or liabilities.

What is the claims process like?

The claims process involves notifying your insurance provider of an incident, gathering relevant documentation and evidence, and filing a claim. Your insurance company will then assess the claim's validity and, if approved, provide compensation based on the terms of your policy.