Contractors Insurance

Getting the right independent contractors liability insurance in place can  protect you from lawsuits, mishaps and third party property damage that can devastate your business.

Normally, you will need a few different categories of coverage for complete liability protection:

• General liability: The foundation of all contractor insurance coverage is a general liability policy. This coverage will provide two types of protection:
  • Bodily injury: Provides coverage if you or someone you employ causes injury or death to a third party during the course of work. It provides for medical care for the injured person and covers your legal defense if you are sued for damages.
  • Property damage: Provides coverage if you or one of your employees causes damage to property belonging to others. This includes the building or property you are working on or any third-party property.
• Completed operations/product: Provides coverage in case a project you finished has an issue or causes damage. It can also extend to any products you sell or distribute.
• Advertising personal injury: Covers the risk of damaging another’s reputation or causing a loss through slander, libel or false advertising claims.
• Contract liability: This covers you in a contract dispute. It is not always included in general liability coverage so verify that you carry this coverage with your insurer.

The specific independent contractors liability insurance coverage you need will be unique to your business. By working with a knowledgeable agent, you can ensure that you don’t have critical gaps in coverage that could leave you exposed to expensive legal claims.

Do you need a Business Owners policy?

The contractors general liability coverages can often be bundled with a few other coverages to create a business owners policy, or BOP.

This serves two purposes. It expands the policy to cover risks that small business owners face, and also typically results in a discount on the cost of your insurance.

Normally, this coverage will make sense for you if you have employees. A small business is basically defined as a business that has up to 100 employees and generates about $5 million or less in annual revenues.

Some of the additional coverages that can typically be bundled with a BOP include:

• Property damage: This insurance covers your owned or rented property if it is damaged. This includes office buildings, storage facilities, warehouses, workshops, or garages. It does not cover commercial vehicles.
• Business income: This protects you from loss of income if your business is interrupted due to a covered loss. It usually covers income and operating expenses for up to 12 months.
• Commercial auto: Insures your cars, trucks, vans, specialized trucks or any vehicles used for business purposes.