The construction business in the United States of America is a big business and also there are a lot of risks. This is why having a firm contractor insurance policy, will help protect your business from liabilities.
The insurance policy will help limit your financial expenses, that may try to occur in the future when you damage your client’s property.
The Meaning Of Contractor Insurance
Also known as ”General Contractor Insurance,” this is the insurance that helps to protect your business from any financial losses that might arise during a contraction project for your client. Not only that, contractor insurance can help to cover your firm or business from claims made by your clients while working on a project.
The Benefits Of Contractor Insurance For U.S Construction Firms
- Contractor insurance protects you from damages and injuries that might arise from completed building projects.
- The insurance is mostly required by the law in some states. Without this, you might not be able to get the license to offer general construction services in your desired location.
- It covers the lawsuits and claims instituted by third parties present on the building property while you may be working.
- The financial protection for your general construction against bankruptcy.
Types Of Contractor Insurance
The best way to protect your contract business in the United States Of America is by having contractor insurance. It is advisable to have one or more of these insurance policies listed below, as it will help protect you and your business from any kind of construction-related risks.
Here are the most common types of contractor insurance:
1). Inland Marine Insurance
This insurance protects your building properties like the materials and equipment when they are transported.
This insurance is mostly used by people transported by land or either by train or truck and this is often paired with the course of Contractor Insurance (Builder’s Risk Insurance).
Also Read
Business Insurance in America: U.S Business Insurance
The 5 important Reasons For Business Insurance
Top 7 Skills To Improve Your Job Opportunities in the United States
2). Roofer’s Insurance
The insurance policy protects the roofers working with your construction firm. The reason is that the risk of falling off the ladder is so high, considering the height of the roof from the floor.
This will help your company not to take the responsibilities involved in the property damage caused by the roofers or personal injury to your roofers.
3). Course Of Construction Insurance
The course of contraction insurance or the builder’s risk insurance takes care of all the parties involved in the course of the building project. These parties include:
- Subcontractor
- The equipment owner
- The project owner/client
- The construction firm
The insurance covers damages that may be arise while working on a building project. It will cover the loss or theft of the equipment and materials for the project.
4). The General Liability Contractor Insurance
This is type of contractor insurance that protects your business in three major ways:
Damage to Property
It will cover all the employee damages on the property of your client or the building property belonging to others.
Protection from legal Fees
This comes in when a third party or even your clients file a lawsuit alleging either property damage or personal injury when they feels bad or frustrated over the activity during work.
In this case, the general liability contractor insurance covers the legal fees for the lawsuit.
Third-Party Bodily Injury
In any case, if you or any of your employees cause bodily injury to the third-party (a person who is not part of your construction team), this coverage comes in.
It will also cover the costs of defending your company in a court of law, if the third party decides to take the legal route.
5). Commercial Automobile Insurance
Vehicles owned by the company are also protected. If your company vehicle gets involved in an accident, vandalised, or stolen in the course of doing business, the insurance protects it.
This protections extents to any injury or property damage incurred with the vehicle.
Also Read
10 Best Ways to Use Social Media Platforms to Promote Your Business
Financial Mistakes To Avoid As A Business Owner Or Entrepreneur
What is Network Marketing? Meaning, Benefits, and Tips
6). Workers’ Compensation Insurance
This type of contractor insurance covers both you (the business owner) and your employees.
The employees and workers gets most of the coverage because the insurance policy covers their lost time wages and medical bills if any one of them is sick or hurt on the job.
