As a remodeling contractor, it’s important to have the right insurance policy for your business. Knowing what kind of coverage you need and how much your plan should include can be confusing at first, but understanding the five key types of coverage available will help ensure that you have the best possible protection.
General Liability Insurance
General liability insurance is the most common type of insurance for contractors and provides protection against claims for bodily injury and property damage arising out of your business operations. This type of coverage may also provide protection in the event that someone is injured on your property, or if you are found liable for personal injuries resulting from an incident while working on a job site. Insurance for Remodeling Contractors. Do you need to check the National Building Codes?
Property Insurance
Property insurance is also necessary for contractors and provides protection against losses or damages to physical assets such as buildings, machinery, inventory, and tools. Contractors should also consider coverage for theft of supplies that may be stored off-site, such as when materials are delivered in advance and left on the premises prior to work being performed. Not having this coverage when an incident occurs could mean huge financial losses.
Workers’ Compensation Insurance for Remodeling Contractors
Workers’ Compensation insurance is required in almost all states. This coverage protects employers from being sued by an injured employee and pays for medical care and lost wages related to a job-related injury or illness. It also covers death benefits when a worker dies as a result of their work. Contractors must obtain Workers’ Compensation insurance through their state, even if they are the only employee of the company.
Commercial Auto Insurance
Commercial auto insurance is a necessity for any remodeling company, large or small. Most companies own at least one vehicle, and many have a fleet of vehicles. This type of insurance ensures that if an employee has an accident while driving a company-owned vehicle, the business will not be liable for the costs associated with the incident. It also covers injuries to other drivers and property damage in the event of an accident. Insurance for Remodeling Contractors.
Insurance for Remodeling Contractors: The Business Owner’s Policy Option
A business owner’s policy (BOP) combines property and liability coverage into one policy. This type of insurance is designed specifically for businesses, and can include coverage for buildings and contents, as well as for damages caused by employees or third-parties. By purchasing a BOP, contractors can save money by combining multiple policies into one comprehensive package.