What insurance coverages are available to contractors?
Contractors have access to diverse protections through contractor policies. Some of the more common coverages that policies typically offer are:
- General Liability Coverage: Might cover accidents occurring at the contractor’s site and on job locations, which result in harm to a third party.
- Commercial Umbrella Coverage: Might provide additional liability protection for legal claims that exceed a general (or other) liability coverage’s limit.
- Commercial Property Coverage: Might cover equipment, tools, supplies, furniture, racks and electronics at a contractor’s facility.
- Inland Marine Coverage: Might cover equipment, tools and supplies as they’re transported to/from different job sites.
- Contractors Equipment Coverage: Might cover equipment, tools and supplies as they’re kept at job sites.
- Equipment Breakdown Coverage: Might cover unforeseen malfunctions of essential equipment that require prompt repair.
Contractor liability insurance coverages usually pay for legal costs and settlements associated with covered claims. They normally begin paying when a covered claim is filed, so contractors can get help before any claim is settled or ruled on.
Contractor property insurance coverages usually cover the stipulated items for either their depreciated value or replacement cost, depending on the terms of a policy’s protections.
A knowledgeable insurance agent can explain exactly what various contractor liability insurance coverages and contractor property coverages should protect against.