Unfortunately, accidents can happen on a jobsite. If an unforeseen event takes place and it results in any injuries or property damage, your business may be found liable. When there are multiple trades and companies operating on a single jobsite it can add a layer of complexity, making it crucial for contractors to stay informed and adequately insured against diverse risks.
Contractor insurance is an essential safeguard, that can mitigate financial loss in the event of claims from a third party. Without insurance, contractors could find themselves paying these costs out of pocket, a burden that can be financially crippling, especially for smaller contractors or those working on limited-scale projects. This insurance does more than help protect your finances; it can also ensure the longevity of your business. It can help prevent scenarios where you might have to shut your business’ doors. We’ll look at some common coverages you can include in a contractor insurance policy.
Builders risk insurance
Builders risk insurance safeguards building projects, and it can help cover everything from new construction to major renovations. This type of insurance is vital for homebuilders and business owners, protecting against potentially high property claim costs. It can help provide coverage for materials on-site and can help safeguard against structural damages due to incidents like fire, theft, or vandalism.
Wrap-up liability
Wrap-up liability insurance streamlines risk management for major construction projects by supporting the different parties who are involved—owners, general contractors, engineers, architects, and tradespeople can be protected. Wrap-up liability coverage can help foster collaboration, efficient project management, and enhanced communication among all parties involved in a construction project.
Contractor’s errors and omissions (E&O)
Errors and omissions (E&O) insurance is essential for contractors, providing financial protection against liabilities arising from professional errors, oversights, and disputes. For contractors with employees, E&O insurance is a key risk management tool. It can help safeguard against employee mistakes and enable contractors to concentrate on business growth and their day-to-day tasks.
Contractors equipment floater
Contractors equipment floater is crucial for contractors who use tools and machinery in their work. This insurance covers a wide range of equipment, from heavy machinery like bulldozers and forklifts to hand tools like saws and drills. The value of these tools can be significant, and if something happens without proper coverage, the cost of repairing or replacing them can fall entirely on the business.
For example, if a fire damages your excavator or a flood damages a generator – equipment floater coverage can help mitigate the cost. Beyond protecting physical assets, this insurance is key for business continuity and reputation management. It can help ensure quick repair or replacement of equipment, which in turns helps prevent project delays, maintain client relationships, and safeguard a contractor’s reputation.
Installation floater
In the contracting industry, standard insurance policies might not cover all the bases, particularly regarding materials used on the job. That’s where the installation floater comes in, filling the gaps by protecting building materials. This insurance is essential for items at risk of damage, loss, or theft.
This type of insurance can also help maintain a project’s timeline and budget. If, for example, custom-ordered tiles get damaged on the way to the job site, installation floater insurance can help cover the cost of replacements.
Non-owned automobile insurance
Small businesses, particularly contractors, often rely on non-owned vehicles for work, necessitating specialized insurance beyond commercial auto coverage. While commercial auto insurance protects business-owned vehicles, non-owned automobile insurance fills the gap for personal vehicles used for business purposes. This type of contractor insurance is important to help manage third-party claims, and can help cover the cost of damage or expenses resulting from an injury to another driver. It helps protect small businesses using non-owned vehicles by allowing them to operate confidently knowing they’re working to mitigate the financial risk associated with accidents.
Contractors pollution liability
Contractors pollution liability insurance protects against pollution-related incidents on job sites, such as uncovering hazardous materials or causing environmental harm through improper waste disposal. This type of insurance covers third-party claims for bodily injury, property damage, or environmental harm. It can help contractors confidently undertake a wide range of projects, including those with possible environmental risks, such as a demolition job where contractors may come across hidden asbestos or lead.
Ensure you’re protected with contractors insurance
If an accident does happen, the right contractors insurance can help protect your business and mitigate the financial losses associated with an unforeseen event. To learn more, visit our construction and contractors insurance page today.
Let Northbridge support your project while you focus on getting the job done. Protect your business with contractors insurance and experience swift and efficient claims handling with our dedicated team. Get a quote today!
