BUSINESS INSURANCE BY INDUSTRY

Contractor Insurance

Contractor Insurance Policies in the Construction Industry

Whether you’re a general contractor, or subcontractor, or work in any other area of construction, you will need insurance to protect yourself and your business. Here are some of the Contractor Insurance policies you’ll want to consider purchasing.

General Liability Insurance

Almost every business can benefit from a general liability policy, and contractors are no exception. This is because a general liability policy will protect contractors from any bodily injury or property damage losses that occur as a result of their work. In many states, contractors need to carry a minimum liability limit to even obtain a license. Louisiana, for example, requires at least $100,000 in coverage.

Workers Compensation

Louisana also requires contractors to carry workers’ compensation insurance, and it’s an essential policy to buy, especially if a contractor has employees. Workers’ compensation will pay for any medical expenses and lost wages for an employee who gets injured on the job. Since the risk of injury can be high in the construction industry, a workers’ compensation policy is definitely one to purchase.

Inland Marine Insurance

An inland marine policy is also vital for contractors as these policies cover property while in transit. Contractors who carry their tools, supplies, and any other material back and forth to job sites will need this policy in case these materials are stolen or involved in any other type of loss.

Builder’s Risk Insurance

While an inland marine policy covers tools and materials that are transported back and forth, a builder’s risk policy covers them on-site. These policies also cover the building during the course of construction, so it’s a benefit to all parties involved. It is important to note, however, that this policy does not provide any liability coverage. A general liability policy can provide this coverage.

Errors and Omissions (E&O)

An errors and omissions policy also referred to as professional liability insurance, protects a professional from mistakes or a failure to act on the job. In the case of a contractor, it can help with legal expenses if sued over faulty workmanship. While this can be offered as a stand-alone policy, it can sometimes be added to a general liability policy as well.

Commercial Auto

If you have a work van or truck that is being used during the course of your business, a commercial auto policy will be needed. Many personal auto policies will exclude business use, especially if the vehicles are titled or registered in the name of your business. A commercial auto policy offers similar protection but expands the coverage for businesses and employees.