What is Contractors Insurance?

Contractors are exposed to a unique combination of possible risks. Without insurance, equipment breakdowns, on-the-job injuries, and lawsuits filed by upset clients may all jeopardize a contracting business’ financial viability. Contractors insurance helps contractors protect themselves from many of these potential perils, as well as a lot of other risks.

Contractors insurance is a form of commercial insurance that’s specifically designed for contractors. Most contractors policies include contractors liability insurance, and they may include a number of other coverages. Often, the exact coverages that a policy has can be customized for a contractor’s particular line of work.

Who Should Consider Getting a Contractors Policy?

Any contractor may benefit from having a contractors policy. General contractors, certainly, can use the protections that these policies provide. They're far from the only contractors who should consider getting a policy, though. 

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Some other contractors that may want to purchase a policy include:

  • Plumbers
  • Electricians
  • Carpenters
  • Roofers
  • Handymen
  • Painters

Even if a plumber, electrician, or other tradesperson works for a general contractor, they may want to obtain their own contractors policy. For, the coverages extended to employees and subcontractors by a general contractor’s policy may be limited. 

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What Coverages Do Contractors Policies Provide?

Since contractors’ insurance needs vary, the coverages offered by contractors policies also vary. Nevertheless, there are some coverages that many policies provide either as standard or optional protections. A few of these include:

  • Contractors Liability Insurance, which may help pay legal fees and settlements associated with lawsuits that accuse a contractor of causing an injury or property damage
  • Contractor Equipment Coverage, which might provide coverage for equipment a contractor owns
  • Equipment Leased or Rented from Others Coverages, which may provide coverage for equipment that a contractor rents or leases
  • Commercial Auto Coverage, which contractors likely need if their business owns one or more vehicles

Does Contractors Liability Insurance Cover Employee Injuries?

While contractors liability insurance may cover injuries that other people sustain and are caused by a contractor, it doesn’t generally provide protection for injuries that contractors or their employees sustain while on the job. Employee injuries are normally covered by workers compensation insurance, which is usually purchased separately.

How Can Contractors Prove They’re Insured?

Contractors may sometimes be asked to show that they’re properly insured. Potential clients might request proof, and towns and cities often ask for proof when contractors apply for permits.

A Certificate of Insurance (or a copy of a certificate) is widely accepted as adequate proof of a contractor’s insurance. A certificate typically includes a contractor’s name, the liability limits of their policy, the effective dates of their policy, and their insurance broker’s name and address.

Most insurers send certificates when contractors purchase policies, but these certificates are sometimes lost or rendered illegible. Contractors who need a new Certificate of Insurance can ask their insurance agent for help obtaining one.

Make Sure You Have the Right Coverage

How Can Contractors Get Contractors Insurance?

For help finding contractors insurance, contractors should contact an independent insurance agent who specializes in commercial insurance. An agent will be able to help a contractor assess their insurance needs, and an independent insurance agent can request quotes from different insurers for policies that meet those needs. There are knowledgeable independent agents located throughout the nation ready to help you get better protected.

Meet Your Industry Specialist

Jeff Kroeger

Principal, Senior Vice President, and Head of Commercial Lines, Mr. Kroeger also manages the company's hospitality book of business and is that unit's primary producer. He is a graduate of Montclair State University and was named a 2015 Young Gun Insurance Business America.

Jeff has been providing exceptional insurance for restaurants, bars, nightclubs, and more for many years. He understands the unique challenges this industry faces and delivers the right coverage at an affordable price.

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If you want value with professional expertise, you've come to right place.

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