What types of Insurance should a Contractor consider?

June 20, 2023

As a contractor, there are several types of insurance you may need to consider to protect yourself and your business. The specific insurance requirements can vary depending on your location, the nature of your work, and the regulations in your industry. However, here are some common types of insurance that contractors often consider:

  1. General Liability Insurance: This insurance provides coverage for third-party bodily injury, property damage, or personal injury claims that may arise during the course of your work. It protects you if a client or a member of the public sues you for damages.

  2. Professional Liability Insurance (Errors and Omissions Insurance): This type of insurance is particularly relevant if you provide professional advice or services. It covers claims of negligence, errors, or omissions that may result in financial losses for your clients.

  3. Workers' Compensation Insurance: If you have employees, workers' compensation insurance is typically mandatory in most jurisdictions. It covers medical expenses, disability benefits, and lost wages for employees who are injured or become ill while working.

  4. Commercial Auto Insurance: If you use vehicles for business purposes, such as transporting tools or materials, you will need commercial auto insurance. It provides coverage for accidents, damage, or theft involving your business vehicles.

  5. Builder's Risk Insurance: This type of insurance is specific to construction projects. It covers the property being worked on, including materials and equipment, against damage or loss caused by events like fire, theft, or vandalism during construction.

  6. Equipment and Tools Insurance: Contractors often rely on specialized equipment and tools for their work. Equipment insurance protects these assets from damage, loss, or theft.

  7. Umbrella Insurance: Umbrella insurance provides additional liability coverage that goes beyond the limits of your other liability policies. It offers an extra layer of protection in case a claim exceeds the limits of your other policies.

Remember, these are just some of the common types of insurance contractors consider. It's essential to consult with McDaniel Insurance Agency, who can assess your specific needs and help you determine the appropriate coverage for your business insurance.   Text or Call 502.909.0920 or email Blakeshelton@McDanielins.com.