Contractors insurance is a niche type of insurance product meant for businesses that operate in the contracting space. In general terms, a contractor is anyone who sells his or her materials or labour on a contractual basis. Contractors insurance, though, is intended for contractors operating in or adjacent to the construction industry. General contractors, subcontractors, or individual tradespeople are all contracting businesses who can benefit from having this type of insurance policy.
What Does Contractors Insurance Protect?
As a contractor, every new job brings an opportunity to do more work and earn more money. However, every project also brings a new set of risks. You and your team are the ones taking on these risks. This means the client’s insurance policies won’t provide any protection. Instead, you need to have an insurance policy of your own. You need to protect your business, your employees, your equipment, your materials, and yourself. A contractors insurance policy fits the bill.
Who Needs Contractors Insurance?
As a business owner operating in the construction or installation industry, you should plan to have this type of insurance policy. Most of the coverage types discussed above are designed to cover the unique risks that general contractors take on daily. Failing to have any of these coverage types for even one project can be catastrophic for a contractor. Theft of materials, damage to an in-progress project, or injury to a bystander could happen in the world of contracting. Without proper coverage, any of these incidents could bankrupt your business.
Do note that your business insurance needs may shift from one project to the next. For instance, your taking on a new job that will involve an increased crew size. You would likely need to upgrade your insurance for this type of change.