In any business venture, insurance is very crucial. You always work under the premise that something may happen in the future that is why you need to protect your business interests. There are many ways of protecting your business but if you are a contractor, you need to put more emphasis on insurance.
You will come to know that there are many insurance agencies in the market these days. This makes things confusing. However, you shouldn’t stop at that. You should always strive to protect your business by deciding the type of insurance you need. Deciding a type of insurance needs due diligence. This means you need to do your research first to narrow down your options and finally arrive at a decision.
In the meantime, here are insurance policies that you should consider as a contractor:
Contractors general liability insurance
This type of insurance is mostly utilised by the construction industry. This is an important requirement before starting a project. The law states that no contractor should operate without the general liability insurance. If your company is caught without it, you are putting the whole business in peril. This insurance covers property damage and physical injuries. It also covers legal fees in case of litigation. The coverage will depend on the policy. It is important that you read everything and understand before purchasing the insurance.
Builders risk insurance
This type of insurance is designed to cover any loss or damage during a construction project. Typically, it protects the structure of the building materials on site or during transit. Before getting this, you have to talk to a broker to explain the policies because it can be confusing since it contains many exclusions and limitations.
Workers compensation insurance
It is crucial that you consider this type of insurance because it protects your workers not just from medical bills but also income and other rehabilitative services if they encountered accidents or injuries. This type of insurance is also a requirement for contractors.
Commercial auto insurance
This type of insurance covers trucks, heavy equipment, and cars that are used for daily business operations. This is usually dependent on the number of drivers and vehicles. This usually covers collision, medical payments, and body injuries. The agent will help you figure out whether the commercial auto is beneficial for you or if fleet insurance is better.
Having an insurance is building on a strong business foundation. This is to make sure that the business will still thrive no matter what happens. Remember that with the purchase of particular insurance policy, you will be guaranteed protection from potential risks. Engaging in this type of business has a lot of risks compared to other fields. The risk of physical injury and property damage is great that you need to protect your assets and the people around you.
If you want to discuss your options, you should look for an expert agent or broker. These people can help you decide the best insurance to optimise the best protection.
