What Insurance Do Contractors Need?

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Call your Preferred Mutual independent agent to learn about how you can mix and match your coverage to better protect your business!

No matter the size of the operation, contractors face some serious risks, so your coverage needs to be just as serious. Whether you’re thinking of starting a business, or your business is about to thaw and pick up during the spring season, know the facts about the types of insurance your contract business needs.

 Contracting businesses need insurance to protect their business assets from the unexpected and unintended risks, such as injuries or damage to property. When researching insurance policies, it is important to understand what kind of risks are specific to your operation.

What Kind of Risks Do Contractors Face?

Contractors face liability exposures and legal obligations to other parties, such as general contractors, project owners, or individual homeowners. Due to those obligations, one of those third parties can potentially sue or hold a contractor liable for bodily injury or property damage.

Other potential risks to a contractor’s business include:

  • Injuries or property damage involving a company vehicle
  • On-the-job employee injuries
  • A loss to commercial property
  • Stole, lost, or damaged equipment or materials
  • Unfinished contracted work

What Kind of Insurance Do Contractors Need?

While every contracting business faces unique risks, the most common coverages include:

General liability insurance protects a contractor’s business assets from third party claims alleging negligence. Alleged negligence may have resulted in bodily injury and/or property damage that occurred while operations are either ongoing or after the work is completed.

General Liability Insurance has limits, and depending upon your risks of business, adding a Preferred Mutual umbrella endorsement to your preexisting policy ensures that you and your business are fully protected.

  • Commercial Property Insurance 

Commercial Property Insurance offers protection for your building and its contents from fire, vandalism, theft or smoke damage. You may also want to consider business interruption/loss of earning coverage to protect your earnings if your business is unable to resume normal activities as a result of a covered loss.

Preferred Mutual offers an enhanced, tailor-made Commercial Package Policy, covering more than just your property! Talk to your independent agent to discuss these customizable coverages.

  • Commercial Inland Marine Endorsement

Most trade and site improvement contractors have equipment that travels with them from site to site. 

Preferred Mutual offers a Commercial Inland Marine endorsement which protects your property away from premises, including offsite equipment, valuables, and property that is in transit! It also covers valuables that require separate insurance, such as valuable papers!

Commercial Auto Insurance provides coverage for bodily injury and property damage to a third party, as well as property damage to your business fleet.

Our auto insurance is a little different; you aren’t just protecting your vehicles after an accident, you’re protecting the employees that ride in them, and the products and equipment you need to keep your business running. Preferred Mutual Commercial Auto Insurance Coverage can also be included in the Commercial Package Policy, so be sure to talk to your independent agent to discuss recommendations!

Before the warmer days arrive and your contracting business begins to bloom, take the time to review your existing policy. And make sure you call your Preferred Mutual independent agent to learn about how you can mix and match your coverage to better protect your business!

This information is intended for educational purposes only and is not legal advice and/or an authoritative guide.

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