17 Jul What to Look for When Shopping for Contractors Insurance
As a general contractor, business insurance is essential to protect your livelihood. Bancorp Insurance specializes in contractors insurance and serving the specific needs of this industry. You want to look for an agent that works with contractors every day. An agent that knows about the kind of work you do and knows all of the insurance companies available. Not every insurance company wants to insure every contractor. Some insurance companies like some contractors better than others. At Bancorp, our agents know which companies to approach to insure your particular business because of their years of experience.
Insurance Coverages for Contractors
Because our agents know your business, we can help foresee the unexpected before it happens. To start, contractors need general liability and a bond to just get a license. Contractors also need:
- Workers Compensation if they have employees.
- Commercial auto if they have commercial vehicles.
- Equipment coverage for their hand tools all the way up to dozers and cranes.
- Property insurance for your shop and it’s contents.
- Some but not all contractors need Specialty Bonds for government work.
- Some may need Course for Construction policy for a building in progress.
- If a contractor has employees, they may also need Employment Practice Liability insurance just in case an employee sues then for some real or imagined wrong.
Contractors insurance gives you peace of mind when the situations you may or may not have anticipated arise. Navigating business insurance can be daunting, but we are here to help you along the way.
General Liability Insurance for Contractors
The first type of coverage you need to look for as a contractor is general liability insurance. This coverage pays if you are negligent and somehow injury someone or cause damage to their property from your premises, operations, or your product or your completed jobs. If your customer or someone else sues you for these reasons, it could bankrupt your business and may have an impact on your personal assets if you don’t have insurance. General liability will pay for your legal defense and money to compensate an injured person or business.
Contractor’s License Bond
The State of Oregon requires that you have a bond in order to get a license. These bonds are easy to get and pay your customer if the State of Oregon feels that you have not performed your work per your bid.
Commercial Auto Insurance
Many insurance companies offer commercial auto insurance coverage that can be bundled into the package you choose. Commercial auto insurance is similar to personal auto and has two parts.
- First, the coverage will defend you if your involved in an accident and you injure someone or damage their property.
- Second, it will repair or help replace your vehicle if it is in an accident.
Workers Compensation for Contractors
Adding Workers Compensation to your contractor’s insurance policy makes sure your employees are covered in the event of an on-the-job accident. Workers comp covers medical treatment, disability income, rehabilitation costs and to your employee or their family for work-related injuries or death. It is also required by law if you have employees.
Tools and Equipment Insurance
Contractors tool and equipment insurance covers your hand tools, power tools and other daily tools from theft, vandalism and physical damage outside of normal wear and tear. It can also cover larger equipment including bulldozers, cranes, backhoe’s, just about anything you might have on a job site. This coverage protects your tools regardless of where you might keep them, as they may not all be in one place.
Contractors Property Insurance
Many builders will own or lease a shop or storage building that is the base of their operations. These buildings need coverages along with the shop tools that they use in their business.
Contractors may also insure the building they are building with a course of construction policy. This kind of coverage will pay to rebuild the structure in the event it burns down or is somehow destroyed while it is being built.
Bid and Performance Bonds
If your bidding on a job working for the government, you may need to provide Bid and Performance Bonds. These types of bonds will pay in the event you are unable to perform per your bid on the job, and then the contract you eventually sign with the government entity.
Employment Practice Liability Insurance.
Contractors are not immune from being sued by there employees. EPLI will defend you against a lawsuit from an employee alleging wrongful termination, sexual harassment, Americans with Disability Act claims. Just to name a few of the many ways your employees can sue you.
Bancorp Specializes in Contractors Insurance
Insurance is complicated. Don’t try to do it on your own. Our agents specialize in providing personally tailored insurance policies for contractors in a wide variety of trades. We know contractors insurance and can help you find the right coverage for your business in order to protect your livelihood and assets. Our commercial lines team of insurance agents works with you directly to understand your needs.
Contact Bancorp Insurance for a quote on your contractors insurance policy today.