Contractors Insurance: A Guide to Contractors Insurance in 2024

Written By Charlotte Insurance on November 28, 2023. It has 0 comments.

A Definitive Guide to Contractor Insurance

General contractors need to have air-tight insurance policies in place in order to protect themselves. There’s a lot that can go wrong when building, remodeling, or repairing a home, so you need to be prepared for when the worst happens. Otherwise, you could end up having to pay for the costs of labor and materials out of pocket.

So, what types of insurance should you have in place to fully protect yourself and your business? Here’s a short guide to simplify things.

Must-Have Insurance Options

When it comes to insurance for contractors, there are several types that you absolutely must have. They include:

  • General Liability Insurance This insurance protects you when accidents happen on the jobsite, such as those that damage the client’s home, among other things.
  • Completed Products Insurance – Do you need coverage once the job is complete? It’s a good idea to have this type of policy should something go wrong during construction that isn’t caught until weeks or months later.
  • Property Insurance If you have a main warehouse or office building that your company operates out of, then you need to have property insurance coverage on it.
  • Commercial Vehicle Insurance You need to have a commercial auto insurance policy on any vehicle that you drive for company purposes, as well as any vehicles owned by the business.
  • Equipment Insurance – If you own equipment, especially electronic equipment, then it’s a good idea to have insurance on it, just in case.
  • Workers’ Compensation Insurance Any business that hires employees needs to have workers’ compensation insurance in order to stay in compliance with the law.

Insurance That’s Recommended by the Experts

On top of the necessary insurance coverages, there are some that are recommended by insurance experts and general contractors who’ve been in the business for a while. These options are:

  • Leased Equipment Insurance – If you lease or rent equipment, then you need to have insurance on those items, just in case. You can’t always rely on the insurance offered by the rental company.
  • Employment Practices Insurance – Any business that hires employees should have an employment practices insurance policy. It protects the business from an employee’s untoward actions.
  • Hired Commercial Auto Insurance – If you hire subcontractors and have them drive themselves to the job, or haul around company-owned equipment, then you need to have this type of insurance to protect their vehicles.
  • Liability Umbrella Insurance – Anything that goes wrong, but doesn’t fall into the category of general liability insurance, instead may be covered by an umbrella policy.

Specialty Policies

In addition to all of the insurance policies that were previously mentioned, there are some other options, all of which are specialty policies. They include:

  • Environmental Hazard Insurance – If you haul away or deal with potential environmental hazards (like asbestos), then you may need to have this type of insurance in place, should you accidentally contaminate the environment.
  • Errors and Omissions Insurance – Things get forgotten sometimes, even on the best planned jobs. Errors and omissions insurance is designed for this purpose.
  • Specific Trade Insurance Options – There are a number of insurance options available that are designed for specific trades, like plumbing, roofing, HVAC, and more.

Have Questions? Contact Charlotte Insurance

Want to learn more about the importance of insurance for contractors and all the options at your disposal? Contact Charlotte Insurance. Our agents can explore and explain all available options and put together the insurance coverage plan your business needs.

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