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.

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