Contractors Insurance

What Is Contractors Insurance?

This coverage form is a small business insurance policy that is custom-built to address the specific risks that come with the job. A good contractors insurance policy contains several types of coverage that protect your business from problems such as accidents, lost income, lawsuits, and stolen, lost or damaged tools.

For example, if you accidentally damage someone’s home while doing a job, the general liability portion of your policy can pay for repairs.  The policy will not, however, cover any quality of work issue.  

Who Needs Contractors Insurance?

A contractor is hired by a client to complete a project. For example, a homeowner hires you to build an addition to their home. A contractor can be broken down into two types:

• Contractor. Sometimes referred to as a general contractor, they are responsible for overseeing the completion of the project and fulfilling the contract. For example, completion of an addition to a home.
• Subcontractor. A worker or company hired by the contractor to perform specific tasks or services for a project. For example, a contractor hires an electrician to install wiring in the new addition. Generally, a subcontractor reports to the contractor, not the client.

No matter if your business does general contractor or subcontractor work, you need contractor insurance to protect your business from work-related accidents.