Contractors are self-employed business men and women who must learn the in’s and out’s of the construction industry. Aside from taxes, insurance is the most complicated aspect of running the business. Here are some of the basic types of contractors insurance policies that any contractor should acquire before beginning a new project.
Not specific to the construction industry, general liability is the bare minimum that any business owner should have. It protects from a wide range of accidents and claims made by the general public, including copyright infringement.
In the same way your homeowner’s insurance protects the place you live, commercial property insurance provides coverage for your place of business. Even if your building itself is not very valuable, chances are that the tools and equipment inside would be hard to replace without coverage.
Every employee must be covered by workers’ compensation insurance. The specifications of this coverage vary from state to state, but the purpose of the policy is to provide financial resources to employees to compensate for injuries that happen on the job.
By maintaining these contractors insurance policies, you can be sure that your business is protected from devastating financial loss. With coverage in place, you can focus on other important details of your job.
The complexities of liabilities associated with construction projects add confusion to the processes of securing insurance for a job. The advisors at https://www.sboneinsurance.com recommend that you know the difference between builder’s risk vs property insurance in order to give your project the best protection. Having a builder’s risk policy can be the difference between a successful risk management approach or a devastating loss.
The nature of property insurance is somewhat limited in light of the construction activities that might be occurring. The scope of property damage is limited to incidents of theft, fire, and weather damage to existing structures and items belonging to the property owners. A construction site presents new elements that would need coverage.
When construction is occurring, there is an assortment of equipment, materials, and vehicles that belong to contractors and subcontractors on the property. A builder’s risk policy covers the loss associated with damage to these items in the event of vandalism, theft, fire, or weather damage. It also covers the unfinished project or structure with the plan being in effect from the date the work begins to the day when work has been completed and the property is available for use.
The details of coverage for each policy are unique to what the property owner, contractor, or bank requires. Additional endorsements and inclusions can be tailored to meet specific risks such as weather vulnerabilities in areas that may be prone to flooding or wind damage.