In certain industries, such as construction and landscaping, workplace accidents and errors can easily occur and have severe financial impacts on a company. Therefore, it’s important to have adequate protection in cases such as these. The most effective safeguard against these types of incidents is contractors insurance, which is a form of professional liability insurance. Here is a close look at what does contractors insurance cover.
Areas Of Coverage For Contractors Insurance
If you are a contractor, subcontractor, or independent tradesman, you will benefit from purchasing contractors insurance. Examples of trades that should acquire this type of coverage include construction workers, carpenters, plumbers, electricians, landscapers, painters, and heating and air conditioning installation workers. Here is an analysis of the five primary areas of coverage included in a typical contractors insurance policy.
General Liability
General liability coverage is designed to protect you in the event your business becomes responsible for any injuries or damages to your commercial property (e.g. building and equipment). This type of coverage can help pay the costs associated with bodily injury claims and can also cover claims of defamation (libel and slander) in certain cases. General liability insurance typically does not cover claims arising from professional mistakes such as undelivered services. For these types of claims, you may need to purchase errors & omissions (E&O) insurance.
Commercial Auto For Vehicles
Commercial auto coverage provides protection for vehicles such as cars, vans and trucks that are utilized for work-related purposes, including transportation of tools and other contractor materials. Objects attached to commercial vehicles, such as ladder racks, may be covered under some policies; be sure to verify this with your insurer and also to ask whether borrowed vehicles are covered by your policy. If your business owns multiple vehicles, commercial auto coverage will likely be extremely useful, especially if your organization is located in a high-traffic area where accidents are common.
Third-Party Property Damage
Third-party property damage coverage is intended to cover claims resulting from damage caused by individuals who are not the insured (or “principal”) listed on an insurance policy. It is a form of liability insurance that an insured (first party) purchases from an insurer (second party) to protect itself against the claims of another (third party).
For example, if you damage a client’s property (e.g. house or commercial building, landscaping, mailbox, etc.) with your commercial vehicle or by any other means, third-party property damage coverage can help pay the costs associated with the ensuing claim from the client.
Workers’ Compensation
This type of coverage shields you if your employees become sick or injured on the job. Depending on the industry your business belongs to, workplace injuries may occur due to slip-and-fall incidents, lifting heavy equipment, or operating dangerous machinery, among other things. According to the National Safety Council, the average cost for all workers’ compensation claims combined in the United States in 2017-2018 was $41,003. Each state has its own unique set of laws regarding workers’ comp, so be sure to find out what these are in your state.
Equipment Coverage
The final type of coverage a typical contractors insurance policy includes is designed to protect the equipment you use for business purposes. Contractors equipment insurance may provide either scheduled coverage, which covers items listed in a schedule, or blanket coverage, which covers all items that meet the definition of “covered property.” Given that contractors equipment (e.g. hand tools, scaffolding, portable generators, etc.) is frequently utilized outdoors, it is typically subject to damage caused by natural perils such as lightning, floods, and landslides. Damage caused by certain perils, such as nuclear hazards, may not be covered.
Contact Our Contractors Insurance Professionals
Reach out to the professionals at John M. Glover in Norwalk, Connecticut, for more information on contractors insurance and its benefits. We have been dedicated to serving clients located throughout Connecticut, Massachusetts, New Jersey, New York, and Hawaii since our founding in 1916. As an independent agency, we work closely with several notable insurers and strive to provide our clients with high-quality insurance solutions that meet their budget and unique needs.
At JMG, we understand the risks that contractors and subcontractors routinely face and are committed to helping you obtain adequate protection. If you use a truck to transport your supplies, we can offer you a dependable auto insurance policy. Our more specific options include plans for carpenters, riggers, environmental workers, and street and highway workers. We have experience covering both small business contractors and large contracting companies.
Call JMG Insurance Corp today at (844) 304-7332 or contact us online to receive a free quote or to learn more about our policies.