Affordable contractor insurance is a necessity for contractors and self-employed professionals who may face economic risks when providing services to clients. This guide will help you understand the different types of coverage available, how much to budget for contractor insurance, and which policies are best for your business.
Assess Your Risk.
Assessing your company’s risk is the first step you should take when shopping for contractor insurance. Before selecting an insurance policy, consider what types of losses and liabilities your business may incur, such as property damage, personal injury, legal fees, and more. This assessment will help you determine the type of coverage you need and the amount of coverage required to protect your business.
Shop Around for the Best Rates and Coverage.
Once you’ve determined the amount of coverage your company requires, it’s time to compare rates and coverage. Make sure you get as many quotes as necessary to find the best deal for your business. Compare multiple insurers and their different plans, making sure to look at factors such as deductibles and exclusions in addition to rates. Be sure to read all policy documents carefully before making a decision.
Look for Contractor-Specific Workers’ compensation Policies.
Many insurance companies offer special policies designed for contractor-specific risks. For example, a workers’ compensation policy that covers non-employee contractors may be integrated with general liability coverage. This could save you money while providing your business with greater overall protection. Consider all available options when selecting your policy to ensure you get the right coverage at the right price.
General Liability Insurance for Contractors.
General liability insurance covers third-party injuries, accidents, and illnesses arising from your business operations. This type of coverage helps protect contractors from lawsuit costs associated with damage or injury caused while performing a project. It can also cover medical payments if someone is injured on the job, along with covering any damage to property. When buying contractor insurance, make sure you understand the coverage limits for both general liability and workers’ compensation, so you can find the right policy for your business needs.
Consider an Umbrella Insurance or Professional Liability Coverage.
Aside from general liability insurance, umbrella and professional liability coverage are two add-ons that can provide additional protection to affordable contractor insurance. Umbrella insurance protects your business from extensive claims above the limits of your existing policies. Meanwhile, professional liability coverage helps cover potential losses related to any mistakes made as part of a project. Both are great options for any contractor looking for extra coverage and peace of mind.