• About
  • Contact
  • Testimonials
  • Newsletter
  • More
    • Demographics & Advertising Rates
    • Terms & Conditions
Wednesday, June 7, 2023
No Result
View All Result
California Business Journal
  • Front Page
  • Business
  • Finance
  • People
  • Featured
  • Opinion
  • Technology
  • Law
  • News
  • Food
  • Art & Culture
  • Human Interest
  • Education
  • Insurance
  • Real Estate
  • Health & Fitness
California Business Journal
What type of insurance should a contractor have?

What type of insurance should a contractor have?

by The California Business Journal Newswire
A A
Share on FacebookShare on Twitter

The high-risk level of the construction industry compels every contracting business to have the right contractor business insurance policy. Learn more about the different types of insurance coverage that might be best for you as a small business owner in this article.

What is contractors’ insurance?

Contractors insurance are policies that protect businesses in the construction industry against possible financial losses. The right construction insurance can cover most contractors’ liability, including medical expenses, legal defense costs, equipment repair or placement, medical bills for injured workers, etc. State laws and requests from a hiring construction company or general contractor may require independent contractors or subcontractors to own insurance liability coverage that can save them from financial loss due to client’s property damage or third-party injury resulting from mistakes or accidents.

Below, we review some construction insurance policies an independent contractor must carry as protection against possible claims during a construction project.

Commercial General Liability Insurance

Every business needs general liability coverage in case of third-party claims from damaged property or bodily injury. Commercial general liability insurance policies cover incurred costs from these claims, including legal costs for resulting lawsuits.

Most states demand that contractors carry this type of insurance. It’s the basic level of insurance protection for construction workers. A subcontractor can carry the general liability policy by being an additional insured in a business owner’s policy. But it’s advisable to purchase your general liability construction insurance directly from an insurance provider.

Workers’ compensation insurance

The workers’ compensation insurance (also known as workers comp) is a vital business insurance policy for every business with employees. Many states hold the concept of workers’ compensation essential and demand every business owner carries an insurance policy to protect workers. Workers’ compensation insurance covers employees’ medical treatment and lost wages when they suffer a work-related injury or illness. Without this policy, an employer may have to pay the medical bills and other benefits out of pocket.

Property damage insurance

Generally, property insurance protects buildings and equipment housed within them. However, the insurance coverage needed by an individual with personal property differs from that of a contractor handling a project. Homeowners’ insurance coverage can cover possible risks homeowners may face, but it doesn’t suffice for general contractors.

The builders’ risk insurance policy (also known as Course of Construction Insurance) is the appropriate independent contractor insurance to protect against property damage by natural disasters and other covered peril. This coverage projects buildings under construction and stops immediately when the contractor hands over the project to the owners.

ADVERTISEMENT
Commercial Auto insurance

Commercial auto insurance is also known as auto liability or automobile liability insurance. Contractors owning one or more work vehicles must have the commercial auto policy as protection against financial obligations that may occur when the vehicle is involved in an accident causing damage or bodily injury. Commercial auto insurance pays for resulting repair and replacement costs, legal fees, and other expenses associated with the accident.

Professional Liability Insurance

Also known as Errors & Omissions insurance, covers legal expenses that result from professional negligence or mistakes. It also covers advertising injury and other negligence-related claims. It’s always advisable to carry the policy alongside General Liability most times. With a Professional Liability Insurance policy, contractors do not have to bear costs of professional negligence. Subcontractors can carry the policy as an additional insured in a general contractor’s BOP.

Umbrella liability policy

This construction insurance policy raises contractors’ insurance liability limits based on the amount of purchased additional coverage. For context, if the liability limit of your general liability or professional liability policy is $2,000,000, and you purchased a $3,000,000 umbrella policy, your total General Liability or Professional Liability policy would now be $5,000,000. The construction insurance is usually needed by contractors that face higher risks and can exceed their coverage limit easily.

How to get Contractors Insurance

Contractors can purchase construction insurance products directly through an insurance company or work with an independent insurance agent to purchase coverage. Most insurance agents work with different insurance carriers and can help you get the best deals from any of these companies.

Beyond reviewing the types of coverage a construction business needs, leveraging a reputable insurance agency can help choosing the right contractor insurance. ContractorsLiability.com is one of the best insurance agencies that can provide you with satisfactory and professional services. Contact us today to get started.

Related Posts

Commentary: For California employers, it’s time to re-think traditional health insurance
Importance Of Professional Development And Education For Insurance Agents
Importance Of Professional Development And Education For Insurance Agents
Finding A Personal Injury Lawyer In Costa Mesa
Insurance Company Honesty?
California Freeways
Why Elon Musk Blames Californian Insurance Commissioner for High Car Insurance Rates in California
Tags: advertisingagentAutobenefitsbestbusinessescasecommercialcompanyConstructioncontractorsfinancialindependentinsuranceinsurance agentlegalmedicalnaturalprotectionsmall businesssubcontractortreatmentvehiclesWhat type of insurance should a contractor have?
ADVERTISEMENT
The California Business Journal Newswire

The California Business Journal Newswire

Related Posts

Importance Of Professional Development And Education For Insurance Agents
Importance Of Professional Development And Education For Insurance Agents
Commentary: For California employers, it’s time to re-think traditional health insurance
Finding A Personal Injury Lawyer In Costa Mesa
Insurance Company Honesty?
California Freeways
Why Elon Musk Blames Californian Insurance Commissioner for High Car Insurance Rates in California
ADVERTISEMENT

CBJ Newsletter

Facebook Twitter LinkedIn Instagram LinkedIn

Advertise With CBJ

Contact Rick@CalBizJournal.com

CBJ Rates and Demographics

ADVERTISEMENT
1REALTOUR-SAN DIEGO-WEB DESIGN
Facebook Twitter LinkedIn LinkedIn Instagram Youtube
C B J   LOGO  SVG-01
  • About
  • Contact California Business Journal
  • Testimonials
  • Demographics & Advertising Rates
  • Terms & Conditions

Categories

  • Art & Culture
  • Business
  • California Hotel Listings
  • Daily Updates
  • Editor's Choice
  • Education
  • Featured
  • Finance
  • Food & Dining
  • Health & Fitness
  • Human Interest
  • Insurance
  • Law
  • Lawyers
  • Marketing
  • Medical
  • News
  • Newsletter
  • Opinion
  • People
  • Popular
  • Real Estate
  • Social Media
  • Technology
  • Uncategorized

CBJ Partner Firebrand Media

Laguna Beach Independent Newspaper
 Laguna Beach City Guide
 Newport Beach Independent Newspaper
Newport Beach Country Club Magazine
  Montage Magazine
 Omni Escapes Hotel Magazine
 Bespoke Concierge New York
 Evans Hotels
 Laguna Beach Magazine
 On The Menu Laguna Beach
 Newport Beach Magazine
Coastal Real Estate Guide (NB,LB, CDM)
Monarch Beach Resort Magazine
 Pacific Coast Magazine (SoCal)
Sea Island Life Magazine
Salamander Hotel & Resorts Magazine
 View our entire portfolio

 

Most Viewed

  • More Truth About Temu: Is Temu A Chinese Company?

    The Truth About Temu: Where Is It From?

    0 shares
    Share 0 Tweet 0
  • Lawsuit Basics: How Much Does It Cost to Sue Someone?

    0 shares
    Share 0 Tweet 0
  • Investigation: Can TriumphFX Take Your Money?

    0 shares
    Share 0 Tweet 0
  • What to Do When an Online Casino Refuses to Pay Out Your Winnings

    0 shares
    Share 0 Tweet 0
  • The Impact of Covid: Racing to Buy Second Citizenships

    3 shares
    Share 0 Tweet 0
  • Top 5 Flavors On Elf Bar BC5000 Review

    0 shares
    Share 0 Tweet 0
  • NFL Paychecks: How Do NFL Players Get Paid?

    0 shares
    Share 0 Tweet 0
  • Temu’s New Shipping Policy Is A Smashing Hit For Shoppers All Over the Country

    0 shares
    Share 0 Tweet 0
  • 30 Best Temu Alternative Apps To Buy from Online

    2 shares
    Share 0 Tweet 0
  • Five Reasons Why The Government Does Not Like Bitcoin

    0 shares
    Share 0 Tweet 0

Latest Articles

4 Ways To Boost ENT Immunity

The Difference between Data Engineer and ETL Developer

Banking: Be Accountable

Why This California Researcher is Using Financial Algorithms to Predict Extreme Weather Events

Courtesy: Pexels

The Evolution of Gambling: Exploring the Future of Crypto Betting and Technological Advancements

How to Get 1,000 YouTube Subscribers (for Free!)

Why Music Sounds Better Under the Influence of Cannabis?

How Affiliate Marketing Truly Works

A Game of Chance and Destiny: Delve into the Intriguing Universe of Casinos

Courtesy: Unsplash

Why Do You Need Data Protection Software?

California Business Journal | California Business News, California News Media, California business articles | Orange County, Los Angeles, San Diego, Inland Empire, Northern California, San Francisco | Huntington Beach CA 92649 | (949) 648-3815
ALL RIGHTS RESERVED BY CALIFORNIA BUSINESS JOURNAL.
Site Design by 1REALTOUR

No Result
View All Result
  • Front Page
  • Business
  • Finance
  • People
  • Featured
  • Opinion
  • Technology
  • Law
  • News
  • Food
  • Art & Culture
  • Human Interest
  • Education
  • Insurance
  • Real Estate
  • Health & Fitness

California Business Journal | California Business News, California News Media, California business articles | Orange County, Los Angeles, San Diego, Inland Empire, Northern California, San Francisco | Huntington Beach CA 92649 | (949) 648-3815
ALL RIGHTS RESERVED BY CALIFORNIA BUSINESS JOURNAL.
Site Design by 1REALTOUR