Contractors Insurance: Coverages You Need to Consider
Licensing requirements and insurance coverages can be overwhelming for new or experienced contractors. Here are some insurance coverages you should consider.
General Liability Insurance for Contractors
General liability insurance for contractors provides coverage for bodily injuries and property damage resulting from your products, services or operations.
If a someone is injured at your jobsite or property damage occurs during a renovation, general liability insurance can cover medical bills or the cost of repairs. This policy provides liability coverage related to injuries or property damage to others, and product liability.
Errors & Omissions Coverage (E&O)
Errors & Omissions Coverage provides insurance for negligent acts, errors or omissions that occur during an owner or employee’s operation for the buisness.
Classes of Business that Qualify for Contractors Errors & Omissions Coverage include:
Air Conditioning Systems or Equipment
Appliances and Accessories
Carpentry
Carpet, Rug, Furniture or Upholstery Cleaning
Ceiling or Wall Installation
Door, Window or Assembled Millwork
Drilling – Water
Drywall or Wallboard Installation
Electrical Apparatus Installation/Service/Repair
Electrical Work Within Buildings
Floor Covering Installation
House Furnishings Installation
HVAC Installation and Repair
Janitorial Services
Landscape Gardening
Lawn Care Services
Masonry
Painting – Exterior – 3 Stories or Less
Painting
Paperhanging
Plastering or Stucco Work
Plumbing Residential / Commercial
Refrigeration Systems or Equipment
Septic Tank Cleaning
Septic Tank – Install/Service/Repair
Sheet Metal Work
Siding Installation
Tile/Stone/Marble/Mosaic Work
TV or Radio Receiving Set Installation or Repair
Water Softening Equipment/Installation/Service/Repair
Subcontractor-Caused Property Damage Coverage
Subcontractors may be necessary to help with some of your projects but they also add another element of risk. Subcontractors should carry their own insurance and list you as an additional insured. This is so you will be provided protection when they are doing work on your behalf. In some cases, if they do not have insurance then they will be included in your insurance rating as a employee when doing work for you.
Inland Marine Coverage
Inland Marine Coverage provides insurance for products, materials, tools and equipment while in transit and temporarily on the jobsite. So when your tools go to a jobsite with you they will have coverage.
Installation Floater Coverage
Most contractors are aware that their tools are easy targets for thieves. However, many forget the risks involved in transporting their completed work.
Installation Floater Coverage provides insurance for property you’re transporting to install at a temporary location, or a customer location.
Workers Compensation
Workers Compensation Insurance provides your employees income and medical coverage if they are involved in a work-related injury or illness. These benefits provide coverage to help:
•  Cover their medical care
•  Replace most of their lost wages while recovering
•  Pay for funeral and expenses
Get a quote today for your business.
Source: Auto Owners Insurance
