Why You Should Always Insure Your Contractors

Why You Should Always Insure Your Contractors

If you own a business that employees contractors, or are one yourself, then insurance is certainly something that you’ve invested a lot of time and energy into. Being fully insured with at least liability and worker’s compensation will protect your business and prove your legitimacy to potential clients and that you deserve their business.

Of course, the benefits of having insurance coverage are obvious: you’ll be protected in the event that anything happens – if someone drops a wrench onto someone else’s head, or if the roof you Many states even require your business to be covered, and we here at Contractor’s Edge Insurance Services will find for you the best possible plan.

General liability will protect you from any property damage your contractors cause while on a project, and if anyone is injured on the job, worker’s compensation will cover their hospital bills and any potential lawsuits. These reasons alone should give you enough motivation to allow Contractor’s Edge to help you find the best possible plan.

As a general contractor, it’s your responsibility to ensure that the work both you and your subcontractors finish is up to the quality standard that you’ve set for your business. After all, your business is your livelihood. Insurance will insure that the customer – your client – is protected in the event that there are issues in any of the work you do, from electrical to general construction to everything in between.

Certain states won’t even issue a contractor’s license if your business lacks at least the minimum level of insurance coverage. Furthermore, if your subcontractors aren’t included in your own plan, then they’ll need to make sure that they have coverage of their own. Contractor’s Edge is fully capable of helping in either scenario.

What Can Go Wrong?

If you decide to let an unlicensed contractor assist with any of your projects, the ramifications for your business can be far and wide. There’s no guarantee that the work they do will be up to the quality standard you’ve established for your business. If their work is sloppy, then that will ultimately fall to your business, and as for worker’s compensation, if an uninsured contractor is injured or the cause of any injuries, the ensuing medical bills will be your responsibility. Furthermore, most insurance plans won’t cover any damage caused by knowingly employing illegal or unlicensed contractors.

If the worst-case scenario were to come to pass, then by hiring an uninsured (and a likely unlicensed) contractor, your business could be potentially sued into bankruptcy if anything were to happen.

So if you’re a business owner, ensure that each subcontractor that you employ is fully insured, and if you’re a subcontractor looking for work, know that most employers will not give you the time of day unless they know that you – and by extension them – are fully covered if anything were to happen.

We here are Contractor’s Edge Insurance Services can help to ensure that the livelihood of either you or your business are protected by the best-in-class insurance coverage available. We utilize specialty arrangements with insurance companies, unique pricing structures and world class client support.


Topics to Keep in Mind When Dealing with Homeowners

When you’re working with a homeowner on renovations or repairs, or any manner of work in between, there are sure to be a few things on their mind, such as time table for the job, the cost, and a guarantee in the event anything goes awry.

There are a few other questions they may have, or things you may want to let them know about depending on the type of work you’re doing. Be prepared for any of the below:

Hazardous Materials – If you’re working with anything that could potentially blow up or burst into flames, such paints, solvents, and fuel, the homeowner might want to know that these materials are properly stored, or may not want them near their home at all.

License – Have your license handy in case they want to double check it with your state.

Insurance – Contractor’s Edge helped you find the best possible insurance, so show it off with pride! The homeowner will likely want to ensure that you’re insured, anyway.

Cleanup – You’ll be expected to cleanup daily, both the materials used in you work as well as any potential food.

Timeframe – Of course the homeowner will want to know when you’ll start working, and when the work will be completed. If any unforeseen circumstances alter this time table, be sure to let the homeowner know.

Working Hours – Let the homeowner know the hours you’ll be working each day, as well as the typical time for breaks and lunch. This will prevent any accusations that you’re standing around doing nothing.

Vehicles – Let the homeowner know about the expected number of vehicles and their types and ensure that there is somewhere to park them. Also, if you’ll be transporting materials to the worksite, make sure the homeowner knows this, and the expected path to avoid traffic.

Contact Information – If the homeowner doesn’t offer up contact information (home, work, cellular), then request it, and give them yours in return. This way, if any emergencies arise, then you’ll be able to easily contact each other.

This is just a quick roundup of some of the more common topics to keep in mind when working with a homeworker, but clear communication is key in dealing with any expectations. This will keep the both of you happy and go a far way to building trust between the two of you. It will help to avoid any potential disagreements or cost increases.


Business Insurance

As a business owner, it can be overwhelming to determine the kinds of insurance coverage that your contractors require in order to their job with as little risk to you or them as possible. At Contractor’s Edge Insurance Services, finding you the perfect coverage you need at the best price possible is our top priority. Read on for a brief look at some of the aspects of insurance for businesses.

Business Owners’ Policies

In most circumstances, general liability coverages can be bundled together for a business owner’s policy, which will typically cover the risks small businesses will face as well as providing a discount. If your business has 100 employees or fewer, and earns less than $5 in revenue per year, then it will likely be defined as a small business.

General liability provides two different types of protection to your contractors, protecting you against both bodily injured and property damage caused by you or your contractors and will cover any legal fees or settlement amounts.

On top of general liability, coverages that can be bundled with a business owner’s policy include:

Commercial vehicle insurance, which will protect any company vehicles you own for business purposes.

Property damage insurance protects you against any buildings you may rent or own for your business, from office buildings, to garages and warehouses.

Business income insurance protects you from losing income for up to 12 months if your business is interrupted due to a covered loss.

What About Professional Liability Insurance?

If your business typically provides clients with professional advice, consulting, or if your state just requires it, then you’ll probably want professional liability insurance, also known as errors and omissions, or simply “E & O.”

E & O coverage will protect you against any mistakes you or your contractors make that lead to a client incurring financial losses. If necessary, this insurance coverage will provide legal defense and claims settlements.

Also, if your business employs subcontractors, they may not be covered by general liability, so you may want to ensure that they have professional liability insurance.

If you’d know to know more about the insurance plans and types of coverage available to you as a business owner to protect you and your contractors, just contact us and we at Contractor’s Edge will be happy to help.

What Type of Contractors Need Insurance?

As a contractor, insurance will protect both you and your livelihood from all manner of mishaps or plain old bad luck. Contractor’s Edge Insurance Services can help you find the perfect plan for whatever type of contracting work you do.

What Type of Contractors Need Insurance?

Virtually any type of contractor or subcontractor requires contractor’s insurance by the various laws and businesses they work for. This includes, but is certainly not limited to:

  • Electrician
  • Construction
  • Carpentry
  • Cleaning (carpet, etc.)
  • Horse trainers
  • Landscaping
  • Handymen
  • Painters
  • Various freelancers (writing, editing, graphic design)

As a Contractor, What Kind of Insurance Do You Need?

The answer to this question depends entirely upon what type of work you do, be it construction, home maintenance, marketing services, or simply data entry. All of these workers are contractors, and all of these contractors need a different type of insurance to protect themselves in the event that something happens, and of course, that something will vary depending on what you do:

Injury and property damage – Contractors who work with or around large machinery need to protect themselves against workplace accidents involving all manner of potential risks, like a dropped wrench, or the potential explosive pressure of compressed gas.

Disability and Medical – If you become sick or injured, you’ll want to ensure that you do not incur a loss of income as a result.

Errors and Omissions – While injures likely come to mind first when considering contractor’s insurance, there are other liabilities to consider. Protect yourself in the event that a client incurs losses due to recommendations you make as a landscape architect or financial planners.

Food & Drink – If you’re an independent contractor who hosts functions with food or alcohol, then you must be covered in the event that any of that food or drink causes injuries or illnesses, such as food poisoning or allergic reactions.

Types of Coverage

We at Contractor’s Edge can help you find the right kind of complete liability coverage that will prevent your livelihood from being ruined by lawsuits, accidents, or third-party property damage.
This complete liability insurance will have different coverage categories all mixed together for a complete plan. The specific types of insurance you will need will vary depending on what you do, but it will include:

  • General Liability forms the core of all types of contractor insurance liability plans and will provide two types of protection:
    • Bodily Injury – This coverage will protect you against injury or death caused by you or someone under your employ by providing medical care and covering legal fees in the event of a lawsuit.
    • Property Damage – This will protect against any property damage, including whatever you might be working on and any third-party properties or buildings.
  • Contract liability will protect you from a contract dispute, but it isn’t always included in your general liability coverage.
  • Advertising personal injury protects against slander, libel, false advertising, or damaging another person’s reputation.
  • Completed jobs coverage will protect you if anything you’ve finished (including products sold or distributed) is faulty or causes damage.

Who Needs Workers Comp?
Independent contractors may not need workers compensation insurance, but this is typically on a state by state basis. Contractors who work for themselves without any employees most likely will not need to buy workers comp. In some states, this is not the case, and even if you don’t employ others you will need workers comp.

If you do employ others, most states will require workers comp, which will protect you from job-related illness, injury, or death, and will reimburse workers for lost wages in the event they cannot return to work. Business owners benefit from not incurring losses from lawsuits.

If you’ve got any questions, or would like to talk to us further about any potential questions you may have about contractor’s insurance, then don’t hesitate to contact us, and the experts at Contractor’s Edge will be happy to assist you in any way we can.