Business Insurance For General Contractors

As a general contractor, clients expect you to launch project plans on time and meet deadlines. The tasks you undertake can expose you to business risks like damage to property or vital records. Accidents at construction sites can spell disaster for small business owners and contractors.

The right business insurance coverage can protect your business from unforeseen circumstances. They protect your company’s employees and assets. Moreover, they help cover costs related to job site injuries, stolen or damaged equipment, and other business risks you experience daily.

This article sheds light on a range of business insurance policies general contractors need to keep themselves, their employees, and their assets safe.

What Types of Business Insurance Do General Contractors Require?

Believe it or not, you may face liability when sued for physical injury or property damage. To avoid shutting down your business or paying damages from your pocket, you need the right business insurance.

Listed below are a few insurance policies that cover a range of general contractor risks.

1. General Liability

From general contractors to carpenters, construction companies and contractors experience high risks. Also called business liability insurance, general liability provides basic protection against lawsuits by paying costs related to property damage and bodily injuries at your business.

For example, if a person gets injured at the job site or property gets damaged during a renovation, general liability can help you cover medical expenses or repair costs. A Certificate of Insurance (COI) also helps meet various insurance coverage requirements of leases, professional licenses, or contracts.

This insurance policy protects you against the following:

• Customer injuries
• Property damage
• Product liability
• Defamation

2. Workers’ Compensation

Workers’ compensation insurance benefits your employees when they experience a work-related illness or injury.

Also called workman’s comp or workers’ comp, the policy helps cover lost wages when employees are injured or develop occupational illnesses and medical costs. In addition, it covers partial and total disabilities and short and long-term disabilities.

Sole proprietors and independent contractors can also buy this coverage for financial protection against work-related injuries that health insurance may deny.

If you’re a general contractor, the workers’ comp policy covers the following:

• Immediate medical assistance, including emergency costs;
• Ongoing medical treatment, like physical rehabilitation;
• Lost wages due to workplace injuries or illnesses; and
• Death benefits for dependents when a worker dies due to a work-related injury

3. Commercial Auto

Auto accidents can easily cost small business owners and independent contractors anywhere from $15,000 to $75,000— the cost increases if there’s injury involved. Commercial auto coverage can help!

This insurance policy covers the expenses of lawsuits, medical bills, property damage, and other costs arising from the accident involving the general contractor vehicle. In addition, the policy includes vehicle theft and damage done by vandalism or weather.

The coverage can be tailor-made to meet various general contractor or construction company needs. For instance, plumber’s vehicles that are used rarely may require less insurance coverage than painter’s vehicles that are driven daily.

You may require a commercial auto coverage policy if you:

• Operate a contracting or construction vehicle;
• Transport equipment and tools; or
• Send workers to run errands during office hours

4. Contractors’ Equipment And Tools

Contractors and construction companies depend on various equipment and tools to finish the project. However, standard business property coverage policies might not include mobile tools or stored equipment.

Moving items and storing them off-site is increasingly risky. To overcome this, you need additional insurance coverage, such as contractor’s equipment and tools insurance.

Also known as equipment floater coverage, contractor’s equipment insurance is specifically designed for contracting, construction companies, and installation professionals working at various job sites.

The policy protects movable equipment and tools regardless of where they’re stored and helps you pay for replacement or repair when stolen, damaged, or lost. However, it doesn’t include normal wear out.

Here’s what this insurance covers:

• Hand tools like hammers, wrenches, and saws;
• Power tools such as jigsaws, nail guns, and drills; and
• Heavy equipment like backhoes and excavators

5. Professional Liability

Construction and contractor mistakes, such as failure to follow blueprints, can prove financially destructive for clients. You may face liability and be sued to recover losses.

This is where professional liability coverage for contractors comes in. Often called “errors and omissions insurance,” it helps protect your business against accusations of errors or negligence.

The policy can cover the following:

• Oversights and errors;
• Negligence in offering services; and
• Failure to provide promised services

Get Business Insurance For General Contractors From JMG Insurance

As general contractors, buying the right insurance coverage can protect you from property damage, bodily injuries, and other damages. In addition, many states and clients require you to have insurance. With a proper insurance policy, you can save adequate money and run your business efficiently and smoothly.

Looking for reliable business insurance to meet your contracting needs? John M. Glover (JMG) Insurance has your back! At JMG Insurance, you’ll get tailored insurance policies to best meet your changing project needs and set business goals. For more information, visit our website or contact us directly!