Did you know that as of January 2022, the construction industry in the United States has almost 7.5 million people employed?
If you’re planning to start a business in the construction industry, you need to ensure you’re adequately insured. Without the right insurance coverage, you will take on a great deal of risk if something goes wrong for your business.
Keep reading to see what you need to know about contractor insurance. Let’s begin!
Different Types of Contractor Insurance
The most important thing to remember is that insurance for contractors is not one size fits all. There are different types of coverage available and it is important to select the one that best suits your needs.
General Liability Insurance
This insurance protects you from liability claims arising from your work, such as bodily injury or property damage.
Workers’ Compensation Insurance
This insurance is required in most states if you have employees. It protects your employees if they are injured on the job.
Professional Liability Insurance
This insurance protects you from any claims arising from your professional services, such as errors and omissions.
Business Property Insurance
This insurance covers damage to your business property, including tools and equipment.
Professional Liability Insurance
This insurance protects you from claims arising from professional errors or negligence.
This type of insurance covers damage to vehicles used for business purposes.
Benefits of Contractor Insurance
If you are a contractor, you must get insurance to protect yourself and your business.
This insurance will cover you if something goes wrong and if you are sued. It is essential to have this insurance because it will help you to avoid financial ruin in the long run.
The cost of this insurance is relatively low, and it is well worth the price to have the peace of mind that you are protected.
Cost of Contractor Insurance
For starters, construction insurance costs are expected to rise in the coming years. This is due to several factors, including an increase in construction costs and the frequency of natural disasters.
Shopping around for the best possible rate on business, commercial, or contractor insurance is essential. So, be sure to compare quotes from various insurers to find the coverage that best suits your needs.
What to Consider Before Getting Contractor Insurance
There are different types of insurance for contractors available, and the type you need will depend on the size and scope of your business, as well as the type of work you do.
For example, if you’re a small subcontractor, you may only need general liability insurance.
But if you’re a larger contractor who manages a construction project from start to finish, you’ll need a more comprehensive policy that includes workers’ compensation, automobile liability, and builder’s risk insurance.
Get a Contractor Insurance Today
To protect your business, you need to make sure you’re properly insured. Contractor insurance can be complex, so it’s essential to work with an experienced insurance broker.
They can help you understand the types of coverage you need and make sure you’re getting the best possible rates.
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