Contractors have a lot of responsibility in their day-to-day job, such as meeting deadlines, pricing jobs, and meeting with subcontractors, not to mention having concerns about what can go wrong. Regardless of how careful you are, unfortunate situations can and do happen and you need to be prepared for when they do. While some of the insurance-related concerns may be clear cut, others are not. That’s why contractors need to address and assess some typical coverage concerns.
Below Are Common Insurance-Related Issues to Assess as a Contractor, but Not Limited to:
While you may recognize the importance of having your tools and equipment insured, along with your work trucks and trailers, you may be unsure of some other important coverage concerns/options you may need to address.
Employment Practices Liability (EPL)- This type of add-on coverage is designed to provide protection when an employee files a claim against you for sexual harassment, discrimination, hostile work environment, and wrongful conviction, just to name a few. This insurance will provide protection for liability damages brought against you along with any legal fees arising from the claim.
Professional Liability- You understand that having General Liability insurance for your commercial business is a must, but what about Professional Liability? This coverage is designed for situations that arise when you have claim(s) against you for faulty work. Consider the expenses of having to redo a faulty design, the legal fees that could arise, along with a damaged reputation.
Equipment Breakdown- Nothing is more frustrating than having your electrical equipment fail or breakdown. As a contractor you depend on your equipment and when it breaks down, you are unable to finish a job and subsequently, can lose income. This insurance is designed to provide the needed protection against situations when you must repair and/or replace the broken-down equipment, as well as any lost income that results.
Builders Risk and installation- If you do a lot of new construction, renovations, or installation, this type of coverage should be considered. By an added endorsement, this coverage can protect you for situations that can happen in the process of new construction and/or installation, such as damage to HVAC equipment, new flooring, or countertops.
Certificate of Insurance- Most contractors are comfortable with being asked to provide a certificate of insurance, but contractors need to be aware of some other requests from entities. For example, if you using subcontractors, are you asking to be named as an “additional insured” on their insurance policy? Suppose one of your subcontractors causes property damage or injury to someone while doing a job for you. You would certainly want protection under their insurance due to his/her negligence.
Similarly, suppose an entity requests to be added as an “additional insured” under your insurance policy? Simply put, they are asking you, as the contractor, to extend liability insurance coverage from your policy to theirs. Being aware of specific requests and what the verbiage means is essential. You should know the “ins and outs” of this insurance-related concern.
Protect Your New York Contractor Business Today!
If you have any questions regarding these scenarios or add-on coverage options, contact us at Cameron Group Insurance and we will assist you. It is always recommended you discuss your business needs and concerns with us so we can adequately provide you with the insurance protection your business needs at a cost you can afford. Don’t wait! Call us today at 845-627-2130.