subject: Find Out What Type Of Contractors Insurance Coverage Your Construction Company Needs [print this page] Starting your own construction company is a very exciting venture. But one thing contractors often forget about when getting started is purchasing contractors insurance. Although some states require certain amounts of insurance and others do not, here is a rundown of the types of contractors insurance every construction company should have.
General Liability Contractors Insurance
Sometimes referred to as construction insurance, Commercial General Liability (CGL) insurance was developed to provide protection to businesses for expenses of injuries to others and property damage. In many states CGL coverage is often required before a contractor can even bid for a particular job. Contractors in California must disclose to homeowners whether or not they carry general liability contractors insurance. Other states require this coverage by law. Even if it isn't required in your state, operating a business without this protection is risky.
Commercial Auto Insurance
Commercial auto insurance coverage is very similar to personal auto insurance. It covers any cars, SUVs, vans, or trucks used for business, including trailers, tractors, tow trucks, dump trucks, garbage trucks, and semi trucks. Even if none of your vehicles are owned under your company's name, you still need commercial auto insurance that covers your employees if they ever use their own or rented vehicles for business purposes.
Workman's Compensation Insurance
In most states, failure to carry workman's comp insurance is a criminal offense - even if you have just one employee, you must maintain workers' compensation coverage. The importance of workman's comp cannot be overstated. Protecting your employees with workman's compensation insurance is important because as an employer, you are held liable for the occupational injury, sickness, or death suffered by anyone you hire.
Equipment and Tool Coverage
Although equipment and tool coverage will never be required by law, you should purchase this if you own expensive tools and equipment. Contractors Equipment Floater Insurance covers your contractor's equipment and tools that leave your premises and go to the jobsite. Coverage is provided to protect against perils such as theft, vandalism, fire, windstorm, etc. at any location. This policy is often called a "floater policy" because the coverage follows the equipment as it moves around in your vehicles or from one jobsite to the next.
These are the general policies that every contractor should have at all times. If you have more questions about your specific needs, it's always suggested that you call a dedicated contractor's insurance company that will customize an insurance package for your requirements.
by: Sarah Simmons
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