As a contractor, your job carries a certain amount of risk while being performed. The activities you perform may be low-risk or high-risk, and you want an insurance policy that covers a wide variety of claims.
Disabling workplace injuries cost contractors and companies more than $55 Billion in injury-related legal claims during 2019. Can you guess which industry was at the top of the list with the most lawsuits filed? It was the construction industry. There was $10.4 billion paid out in claims due to falls on the same level of a structure, such as slipping on a wet floor, alone.
If you're in the market for insurance for contractors, then you may be wondering where to start. As a contractor, your business is unlike anyone else. Your insurance coverage needs to best match your business type, not someone else's.
Knowing the insurance options you have as a contractor will help you better understand what you need now. It will also prepare you for what you may need in the future as your business continues to change.
What Are the Different Types of Insurance for Contractors?
The list below provides you with the essential options for your company's insurance:
1. Commercial General Liability Insurance
Claims due to damage caused by a contractor are covered under this type of insurance. That is what makes this type of insurance the most important to have. It will ensure that all ongoing business activity at your site is covered during the time you are there.
With the construction industry leading the way in workplace injuries and deaths, having general liability insurance is a must.
2. Workers Compensation Insurance for Contractors
If you hire employees for your business, you will need to look into workers' compensation insurance. This type of insurance covers employee injuries while they are performing their job. The insurance rates for workers' compensation vary depending on the type of contractor business you are operating but will almost always be the most expensive of all insurance coverage.
3. Liability Insurance for Company Automobiles
We understand that most contractors operate with their company vehicles. Whether used for transportation or on-site construction operations, you will need to have commercial automobile insurance coverage. A commercial automobile insurance policy will ensure the coverage of any damage done to property or person caused by the commercial vehicles you own.
4. Construction Contractors Risk Insurance
As a contractor, you know that each new project requires new materials and equipment. With this type of insurance for contractors, you can help protect your business from losses. Common losses include stolen, damaged, or lost equipment, materials, and other supplies.
Let Us Help You With Your Next Quote Today
At Hummel Group, we are dedicated to providing the right insurance for contractors and their businesses. We have over 60 years of experience in helping contractors worldwide receive the insurance protection they need to continue to perform the vital tasks that keep their companies and their clients thriving.
Please, contact us today with any further questions you may have about the commercial insurance services we provide. If you have a better idea of what type of insurance you are looking for, then head over to our quotes page.
We look forward to hearing from you!