Contractors Insurance Information
What is contractors insurance?
Like any business, independent contractors need insurance to protect themselves financially. What type of insurance you need depends on the type of work you do. Some types of independent contractors include the following:
- Independent construction contractors
- Freelance writers, editors and graphic designers
- Repair people, plumbers, carpenters, electricians, painters
- Accountants and financial planners
- House and carpet cleaners
- Independent hair stylists and salon professionals
What types of contractors insurance are available?
There is a wide variety of contractor insurance options. Here is a list of some common coverages for independent contractors.
- Bodily injury and property damage liability: Provides coverage for third party injuries or property damage and defense costs related to both. This coverage is included in a General Liability policy and is often required for commercial leases and construction contracts.
- Professional liability: Most contractors have General Liability insurance (GL) policies, but these exclude “your work,” “your product” and “impaired property.” A professional liability policy can provide coverage to fill in these gaps.
- Commercial auto: Commercial auto insurance is liability and physical damage protection for vehicles, such as cars, trucks and vans, that are used for business. Commercial vehicles require a separate policy because they’re typically exposed to more risk than personal vehicles.
- Builder’s risk: A specialized type of property insurance designed for buildings under construction. Also known as “course of construction" insurance, builders risk coverage begins on the policy effective date and ends when the work is completed and the property is ready for use or occupancy.
- Workers compensation: Compensates employees for medical expenses and lost wages after an on-the-job injury.
- Installation floater: Did you know that materials in transit, at a customer location and at a temporary location are not covered for loss unless you have an “Installation Floater” on your policy? An installation floater is an insurance policy that covers personal property installed, fabricated or erected by a contractor. It covers the property until the installation work is accepted by the purchaser or when the insured's interest in the property installed ceases.