Some other contractors that may want to purchase a policy include:
Even if a plumber, electrician, or other tradesperson works for a general contractor, they may want to obtain their own contractors policy. For, the coverages extended to employees and subcontractors by a general contractor’s policy may be limited.
What Coverages Do Contractors Policies Provide?
Since contractors’ insurance needs vary, the coverages offered by contractors policies also vary. Nevertheless, there are some coverages that many policies provide either as standard or optional protections. A few of these include:
- Contractors Liability Insurance, which may help pay legal fees and settlements associated with lawsuits that accuse a contractor of causing an injury or property damage
- Contractor Equipment Coverage, which might provide coverage for equipment a contractor owns
- Equipment Leased or Rented from Others Coverages, which may provide coverage for equipment that a contractor rents or leases
- Commercial Auto Coverage, which contractors likely need if their business owns one or more vehicles
Does Contractors Liability Insurance Cover Employee Injuries?
While contractors liability insurance may cover injuries that other people sustain and are caused by a contractor, it doesn’t generally provide protection for injuries that contractors or their employees sustain while on the job. Employee injuries are normally covered by workers compensation insurance, which is usually purchased separately.
How Can Contractors Prove They’re Insured?
Contractors may sometimes be asked to show that they’re properly insured. Potential clients might request proof, and towns and cities often ask for proof when contractors apply for permits.
A Certificate of Insurance (or a copy of a certificate) is widely accepted as adequate proof of a contractor’s insurance. A certificate typically includes a contractor’s name, the liability limits of their policy, the effective dates of their policy, and their insurance broker’s name and address.
Most insurers send certificates when contractors purchase policies, but these certificates are sometimes lost or rendered illegible. Contractors who need a new Certificate of Insurance can ask their insurance agent for help obtaining one.
How Can Contractors Get Contractors Insurance?
For help finding contractors insurance, contractors should contact an independent insurance agent who specializes in commercial insurance. An agent will be able to help a contractor assess their insurance needs, and an independent insurance agent can request quotes from different insurers for policies that meet those needs. There are knowledgeable independent agents located throughout the nation ready to help you get better protected.