What Does Contractors Insurance Cover?

Make sure you’ve got the right tools for your business by learning what to look for in your Contractors Insurance Policy.

Owning a contracting business can involve a lot of risk. From hazards on a job site to disgruntled clients, as a general contractor, you may be liable for issues that are beyond your control. This makes it important to understand what your Contractors Insurance covers before you start on a job.

Unfortunately, uncovering what your policy includes can be easier said than done. Reading through the fine print of your Contractors Insurance coverage can be time consuming and, at times, confusing. Not to mention that insurance policies can feel broad, and yet every business is unique.

So, what should your Contractors Insurance cover? Below the APOLLO team outlines the top three things you want to look for in an insurance policy for your general contracting business.

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Three Things Your Contractors Insurance Should Cover

Not all coverage is equal. Here are three things you want to make sure your Contractors Insurance includes.

1. Professional Liability Insurance

When you’re in the construction industry, you know that delays or unforeseen issues can come up. Mistakes or pushed timelines may occur that are outside of your control. And while other trades may understand, this type of unexpected mishap can often lead to clients feeling frustrated. This is what Professional Liability Insurance is for.

In the event that a disgruntled client sues your business, Professional Liability Insurance can help pay for legal fees and settlements. This coverage is often referred to as errors or omissions insurance and can also provide you with protection if you are sued for allegations of negligence or failure to deliver services.

If you’re not sure how much your company needs, check out: How Much Professional Liability Insurance Do I Need?

2. Commercial General Liability (CGL) Insurance

General Liability Insurance can cover a range of things, including employee benefits, property damage, accidental injury of a client, and claims of slander or disputes. See below for more details on how this type of insurance can help protect your business:

• Employee Benefits: With this coverage, you can offer your employees a range of benefits, helping you attract and retain top talent on your team.

• Damage or Injury: CGL can help you in the event that an accident causes bodily injury to a client or damage to their property. With General Liability Insurance you can rest easy knowing that your business is covered.

• Liability Claims: This coverage can also protect you in the event of libel or slander claims. This includes issues or disputes that may arise either on your job site or at your office.

Want to learn more? Find out how much General Liability Insurance costs for contractors.

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3. Contents Insurance

Your tools are your business. If they are lost, stolen, or damaged, you could be left without the necessary equipment to perform your services.

Contents Insurance keeps your invaluable material items safe. All equipment, from screwdrivers to drills, as well as office supplies and furniture, can be included in this policy and will be reimbursed if broken or stolen.

Why Is Contractors Insurance Important?

Insurance can be a tricky concept to accept. You don’t need it — until you do.

In the contracting and trades industry, you know that the unexpected can happen at any time. And for a small business owner, this presents a great risk to you and your company. This makes Contractors Insurance incredibly important.

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For example, imagine that there’s been a leak on your job site. Your client walks through the area slick with water, only to slip and fall.

With Contractors Insurance, your business would be covered. Commercial General Liability insurance can help cover the cost of any repairs or legal fees that result from an accident like the one above. This could save your contracting company thousands of dollars.

Don’t let your peace of mind go down the drain. Cover your company with Contractors Insurance, so you can focus on building your business safely.

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Related: How to Become a Preferred Contractor for Insurance Companies