Entrepreneurs face many unique situations that can put their business at risk. They handle a lot of heavy equipment on a client's property, they have clients going in and out of their building, and someone could get hurt on the job. You never know what will happen.
SummaryTypes of insuranceGeneral liability insuranceWorkers compensationCommercial auto insuranceWhat does general contractors insurance cover?InjuryProperty damageFalse advertisingShopping tips to keep in mindEverything you need to know about insurance for contractorsThe best thing you can do to protect yourself in any event is to invest in contractor insurance. Opening a general policy will give you some peace of mind and help you keep your doors open.
The problem is the cost. Buying coverage can be difficult when you are first starting out. Let us be your price calculator.
Check out this guide to find out what kind of prizes to expect.
There are many types of insurance you will need to invest in if you want to protect your business from lawsuits. Not only that, but in many cases things like workers compensation are a requirement. If you don't, you could be in serious legal trouble.
Liability insurance is first on the agenda. The credit will cover your legal costs if someone sues you for bodily injury or property damage. This includes injuries someone sustains as a result of false advertising by you.
Even cheap general liability insurance will cost you around $90 a month. There is a way to save money, but we'll get to that a bit later.
As a contractor, you may have workers on board with you. Accidents can happen at work. If someone is injured while putting on a roof or cleaning a house, you will be responsible for paying their medical bills.
You don't want it coming out of your pocket. Paying for workers' compensation insurance will cost you nearly $300 a month, but it's worth it. This is also necessary.
Most states require you to have this type of insurance for building contractors.
If you or your employees use a company vehicle to travel from client to client, you will need commercial auto insurance. It will cover damage in the event of the car being scrapped.
If you damage someone else's vehicle and it's considered your fault, your insurance will also cover that damage. It can also protect against extreme weather conditions and acts of vandalism.
There is a way to save money on a few of these essential insurance policies. The answer is general contractor insurance. It will allow you to consolidate your civil liability and commercial property insurance.
It is much cheaper than paying for them separately. It will cover bodily injury, property damage, medical bills and general misleading advertising.
Depending on the type of work you're doing, chances are you'll be bringing large pieces of equipment onto your client's property. Most customers don't sit down and let you do your thing. They will come by from time to time to see how you are doing.
Let's say when they do, they trip over one of your heavy machines. They now have a full range to sue you for any medical bills that arise due to the fall.
Your general business policy will take care of that, so you won't have to pay the hospital bill out of pocket.
You install new furniture for a client and end up scratching his shiny floor. The customer won't be too happy because now he has to hire someone to polish the scratches.
They may charge you for it instead. General insurance covers material damage. You won't have to pay a penny of your own money to make repairs.
You advertise your product to do one thing, but it doesn't do what you say it does, or worse. A client ends up getting hurt because of your negligence.
The client can and most likely will sue you for false advertising. Your general liability insurance will not only protect you in the event of an injury.
Ads are a popular means of advertising. You do not intend to make fun of any of your competitors during the advertisement.
You didn't even realize it, but the competitor definitely takes it like a jab. They can sue you for defamation.
Now that you have some prices in mind and know what insurance can do for you, it's time to get down to business. You may not need all of these policies. You might be able to get away with just the basics.
Take a minute to weigh your risks. This way you know what you need and what you can do without. Once you get the hang of it, start comparing companies.
Remember that getting a quote does not lock you into an obligation. Call different companies for estimates. You should also consider going through an independent agent to get the best deal.
If you want to protect yourself and your business, it's important to look for contractors insurance. It will take care of all your legal expenses in case you are sued for one reason or another.
Even if you never use it, it's better to have it and be prepared than not to have it at all. It is also required in most states.
Having proper insurance is just one step in getting your business off the ground. For more tips, visit the Business section of our blog.
