The work of a contractor can be tough…meeting deadlines, bidding on jobs, along with organizing and managing subcontractors. But what about insurance related situations that are bound to come up at some point? You have enough to worry about with the daily demands of your profession, so it is recommended you read on to find out some typical insurance coverage options available for contractors, of which you may not be aware. Your contractor business may be your biggest investment yet, but does your current available coverage offer adequate protection from losses that can and do happen?
Below Are Some Typical Coverage Options Available to Protect Your Contractor Business, but Not Limited to:
General Liability– When people think of insurance, it’s easy to consider the work vehicles and/or trailers used for the business, but what about general liability insurance? Regardless of how careful you are, accidents happen, and you need to make sure your general liability insurance limits are adequate. Depending on the type of business and the nature of your operations, you may need to consider higher coverage amounts. If you have concerns that your limits are inadequate, it is suggested you contact your local N.Y. independent insurance agent for assistance.
Additional Insured- Most contractors are used to showing proof of liability insurance, but do you know what the implications are when an entity or person asks to be named as an “additional insured?” The person or entity requesting this is asking you, the contractor, to extend your liability insurance coverage to them. Make sure this is agreeable before you oblige. If you have concerns or further questions regarding additional insureds or other coverage options available, call us at Cameron Insurance Group and we will assist you.
Risk Transfer- If you use the services of subcontractors then you have an added risk component. If the subcontractor(s) makes an error or causes damages or injuries on the job, you could be held responsible since the work being done is requested by you and under your guidance. So, ask yourself whether you are executing proper risk transfer. Simply put, being named as an “additional insured” under the subcontractor’s policy will protect you in the event they cause property damage or injury while doing the job on your behalf. Their coverage will be extended to you and the risk will be transferred.
Professional Liability Insurance- Depending on the nature of your business and its operations, you may need to consider this type of coverage option available for contractors. Even the most skilled laborers can make mistakes. Imagine designing an enormous project, but you failed to adequately include some pertinent piping in the design phase. Now, the job is on a major delay due to your mistake, and it will end up being costly on many levels. Without proper insurance protection, you could be responsible for those costs (out of pocket) associated with your mistake. This type of insurance option is designed to protect against errors and mistakes associated with the job. If you are an architect, design specialist or engineer you may need to consider this type of protection for your contractor business.
Certificate of Liability Insurance (COI)- It is common for contractors to be asked to show proof of liability insurance, otherwise referred to as a Certificate of Liability Insurance. This is a form designed to show effective dates of the policy, amounts of coverage available (limit of liability) along with a “description of operations.” However, be careful if the person requesting it ALSO requests some additional verbiage under the description of operations. The requested amendments may not reflect your business operations and could be illegal.
Most businesses or individuals just want to make sure before agreeing to hire you that you have insurance. Suppose a business or person hires a contractor for a job and encounters a loss due to the contractor’s negligence. If the contractor has no insurance, then the person and/or business entity will end up having to financially absorb the loss.
Cameron Insurance Group is Here for Your Contractor Needs
We, at Cameron Insurance Group, understand the significance of your livelihood and our main objective is to ensure you have the insurance protection you need and deserve. If you have any further questions or need assistance with coverage options available for your contractor business, call us right away at 845-627-2130.