Learn how to find the cheapest contractor insurance including general liability and other commercial coverages. Get the policy you need fast - to get your contactors license, meet contractual requirements or to bid on that big job.
Cheapest Contractor Insurance
Construction and contracting occupations have some of the most risky and diverse work imaginable, often with risks that people aren't even aware of.
Some business owners have store fronts that potential clients can visit, and if someone gets hurt while visiting, the injured person's medical bills could become the responsibility of the contractor. Other contractors' risks come while on the construction site. They could be held liable for accidents or products that cause physical harm.
People in the construction and contracting business rely on a type of insurance called general liability insurance. This type of commercial insurance, also known as contractor's insurance, can offer protection from potential lawsuits if accidents, injuries, or some other types of mistakes happen while on the job (there are also many other policies available, but this GL is foundation).
This type of insurance can be invaluable in protecting a business owner from an expensive setback. The questions many contracting companies ask is, "Where do I find the cheapest contractor insurance?"
When Do Contractors Need Insurance?
As a construction worker or contractor, you may need contractor's insurance in several different situations. One is if you work with a client who requires this type of coverage. Many clients require proof of this coverage before you begin work on their project.
Another situation where one might need to have contractor's insurance is if you offer design and build services. If you are sued for professional mistakes in your design work, certain types of contractor's insurance can protect you from financial loss.
You might also need the cheapest contractor insurance if you are hired by a contractor to be part of a larger project. General contractors frequently require subcontractors to maintain their own insurance rather than provide the coverage themselves.
When in doubt, talk to your insurance agent and your client and find out what types of contractor's insurance you need for the types of services you provide. Having the right kind of coverage allows you to protect your business while fulfilling the obligations of your job.
How Does Commercial Insurance Protect Contractors?
Having the cheapest contractor insurance protects your business in a variety of ways. First, it is a survival plan for when things go wrong. Accidents happen even in the most controlled and careful environments. They are unpredictable, but coverage can help handle these unexpected events without jeopardizing the stability of your business.
Contractor's insurance protects your assets. If a third-party claims that you or your services caused property damage or physical harm and you don't have adequate coverage, you would be responsible for paying those damages out of your own pocket; jeopardizing your bottom line.
Lastly, having adequate insurance coverage allows you and your employees the comfort of carrying out the duties of the job without worry of uncertainty. Contractor's insurance protects your business and individuals employed by you from claims brought against the company or an individual within the company.
What Does Contractor Insurance Cover?
As professionals in a hands on, labor-intensive profession, contractors know that accidents happen, no matter how careful they are. The cheapest contractor insurance offers protection from these frequent accidents and the potential lawsuits that come up as a result of them.
This special type of insurance offers protection in the event that someone is injured on the premises of your business, such as your show room or office. This insurance also protects your business if a third-party, not an employee, gets injured on the work site. Your own employees' injuries are not covered by this insurance. For that, a business needs worker's compensation insurance.
Contractor's insurance can also protects your business if someone claims you damaged their property or provided faulty workmanship on their project. For example, if a client claims that you didn't finish a project on time or went over budget, this insurance could protect you from paying for these damages out of your own pocket.
A very common request of contractors to get a job or meet a municipal or contractual requirement is an ACORD 25 Certificate of Liability Insurance, which is a document that provides information about insurance policies to third parties.
What's The Difference Between Being Bonded And Insured?
We often hear of a contractor being bonded. Bonded is not the same as being insured:
- Bonding protects the clients if a contractor or builder fails to obtain or pay for required permits, fails to pay for supplies or other financial obligations, or fails to complete the job.
- Insurance covers situations where someone or something might be damaged during the process of completing the job.
Cheapest Contractor Insurance - The Bottom Line
We hope this article on cheapest contractor insurance has been informative. Fortunately, there are plenty of companies that offer contractor's insurance with a variety of rates to meet the needs of your business. While insuring your business can be tricky, especially when trying to find the right insurance, experts are there to help guide you in the right direction. It is possible to adequately insure your business and employees without breaking the bank.
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