Businesses of all sizes and industries today are exposed to a variety of risks and liabilities. These include workplace injuries and property damage, among other incidents. Therefore, it is important to acquire proper protection in order to avoid paying large sums of money to resolve claims. However, business owners and full-time employees are not the only types of workers who should purchase insurance. Contractors, who perform work and are paid on a project basis, can also benefit from acquiring insurance coverage, but what is the cost of contractors insurance?
What Is Contractors Insurance?
Contractors insurance is designed to protect your business from severe financial burdens that may arise from work-related accidents. If you are a contractor, subcontractor or independent tradesman, you may benefit substantially from this type of coverage. Some employers may even require you to purchase it before you begin working for them. Examples of trades that typically require contractors insurance include electricians, plumbers, landscapers, and construction workers.
Factors Affecting The Cost Of Contractors Insurance
There are several factors that influence the cost of a contractor’s insurance policy. However, here we will focus on four: your business’s specific coverage needs, the number of employees in your company, the types of contracting jobs that need coverage, and the risks associated with the projects your business undertakes.
Specific Coverage Needs
If your coverage needs go beyond a business’s typical necessities regarding protection, you may need to pay higher premiums for your contractor’s insurance policy. For example, if some of your subcontractors have health concerns, you can expect to pay more for insurance should you decide to acquire coverage that will protect them if they fall severely ill. Be sure to ask your insurer whether you need to purchase an additional policy for this coverage or whether you can simply add it to your existing one.
Number Of Employees
The amount you pay for contractors insurance also depends on the number of employees you wish to cover. If you are seeking coverage for 100 contractors, you will likely pay substantially higher premiums than you would for 25 workers. If the number of employees your business hires varies significantly each year, you may consult your insurance company to inquire what the most cost-effective option for you might be.
Types Of Contracting Jobs
Your contractors insurance premiums will also depend on the nature of the contracting work your employees perform. For example, the work that a painter does is significantly different from that of a plumber or an HVAC technician. Some contracting tasks are more complex than others and therefore require more time and resources.
Risks Associated With Projects
In a similar vein, the risks associated with certain contracting projects also impact the cost of contractors insurance. For instance, an electrician and a roofing contractor do not generally face the same risks; the former is exposed to electrocutions or malfunction of equipment, (e.g. electric drill, software) while the latter faces the risk of sustaining bodily injuries by falling or of causing damage to a home’s roof or windows.
Before you purchase a contractors insurance policy, be sure to confirm the level of coverage it provides. You can also ask your insurance company whether it is possible for you to bundle this policy with another form of protection, such as general liability insurance or a business owner’s policy. According to the Bureau of Labor Statistics, (BLS) fatal work injuries involving contract workers increased from 802 in 2014 to 829 in 2015, a 3.4% surge. In 2015, 25% of these fatal injuries occurred in the construction industry.
Work With A Qualified Contractors Insurance Agent
Reach out to the experienced agents at John M. Glover in Norwalk, Connecticut, for more information on contractors insurance and how it can benefit your business. Since our founding in 1916, we have been dedicated to serving the insurance needs of clients located throughout Fairfield County, Connecticut, although we also serve clients in New Jersey, New York, Massachusetts, and Hawaii. As an independent agency, we work closely with several trusted insurance companies.
At JMG Insurance Corp, we understand the multitude of risks that contractors face in their daily work and are thus committed to providing top-quality insurance solutions that meet our clients’ unique needs. If you use a truck to transport your supplies, we can offer you a dependable auto insurance policy. We can also offer you a commercial property insurance policy if you need this. Our more specific options include plans for carpenters, riggers, environmental workers, and street and highway workers. We have covered both small businesses and major contracting companies.
Call JMG Insurance Corp today at (844) 304-7332 or contact us online to receive a free quote.