Contractors have to multi-task to schedule appointments, assess job size and pricing, and ensure projects are running smoothly and promptly, not to mention the insurance related concerns. Being a contractor, there are unfortunate situations that undoubtedly can and will occur, regardless of how careful you are. Insurance protection may sound simple and while it is easy to assess the costs of your tools and equipment, there are some issues you may not consider that could cost you if you aren’t covered. There is more to acknowledge for contractors than just your vehicles, trailers, and tools/equipment. Read on to find out other insurance concerns for contractors that should be addressed.
Below Are Some Insurance Options to Consider as a Contractor, but Not Limited to:
General Liability- You may assume that having general liability insurance is enough. Of course, you need this type of coverage to protect you against any situation or claims of being negligent in causing injury or damaging someone’s property while in the scope of business. Situations may include damaging someone’s hardwood floors in the process of renovations, or someone getting injured on the job-site due to your negligence.
Professional Liability- General liability may make sense, but what about professional liability protection? Some contractors may be confused why they may need this, but it is insurance to protect your business. What if you make an error in the layout of a project that results in customer dissatisfaction not to mention the added time to come to a resolution to the problem? This may be the coverage you need for situations like this.
Certificate of Insurance- Contractors are familiar with the request of providing certificates of insurance; however, do you know all the ins and outs of what it really means? It may seem like a simple request, but is it? If the requesting entity asks to be added as an “additional insured” you may need to add him/her by endorsement if it isn’t automatically done. It’s essential for you to know what this request means. Simply put this “requesting entity” is asking you, the contractor, to extend liability coverage from your policy to theirs. Other situations/requests of which to be aware include being asked to expand language in the “description of operations” portion. If you have any questions or concerns, it is recommended you contact us at Burkett & Associates and we can assist you.
Builders Risk and Installation- With an endorsement, you can expand your protection for situations that may occur in the process of new construction. For example, if you are in the process of installing new flooring but it gets damaged in the process, you would have protection to replace the flooring.
Contractors Errors and Omissions- This is often referred to as E&O or Professional Liability coverage and is designed to provide coverage for acts of negligence for which you are legally obligated to pay. Sometimes accidents happen, regardless of how careful you are. For example, if you oversee a roofing job that later has leaking issues, this type of coverage would provide protection for your negligence.
We are Here to Assist You with any Insurance Concerns
Burkett & Associates understands your unique needs as a contractor, and we are here to assist you in every way. We are an Alabama independent insurance agency that understands the distinct risks to which your contractor business is exposed, and we want to optimize your business protection while minimizing the inherent risks associated with your business. Don’t wait! Call us today at 256-704-7400.