Contractors Insurance: A few facts you may want know

As a contractor in today’s day and age, every job you take on comes with its own set of risks. Contracting requires specific obligations and legal responsibilities. If any mistakes are made that cost a client, this client has the right to make a claim against you, and these kinds of claims can become quite expensive for a contractor. In addition, the vast majority of clients today legally require that a contractor be covered by some level of contractors insurance, before any contract is accepted.

 What is Contractors Insurance?

Contractors insurance provides protection for a general contractor, developer, or builder, as well as its employees and agents, against lawsuits, liabilities, expenses, or other costs that may result from a claim against the building or property. Examples of these claims include but are not limited to roofing or electrical failure, faults, leaks or safety issues.

 There are many types of contractors insurance, some of which include General Liability insurance, Worker’s Compensation insurance, Commercial Auto & Truck insurance, Inland Marine insurance, and Disability insurance.

General Liability insurance provides invaluable asset protection for companies against financial loss. This type of insurance protects all types of businesses who may be sued by a claimant for property damage, completed operations or products liability, advertising injury, personal injury or other reasons.

Another important factor to know about general liability insurance or business liability insurance is that these types of coverage usually have maximum limits that the insurer will pay per claim. The common limits on these types of contractors insurance are: $1 million for each occurrence, $2 million for general aggregate, $2 million for products liability and completed operations, and $1 million for personal and advertising injury. These limits will typically suffice for a small business. Larger businesses should seek the option of purchasing additional coverage limits (called excess insurance).

Worker’s Compensation Insurance

Worker’s compensation insurance provides coverage for statutory benefits to employees who are injured on the job site. All employers have an important and legal responsibility to their employees to make the workplace a safe environment. As safe as a workplace can be, accidents can (and often do) still occur, even in the safest of work environments.