Types of Insurance Contractors Need

Contractors have a tough job. The nature of the tasks being done is really risky. Several studies have revealed that contractors are at a greater risk of having injuries and other problems while carrying out their duties than many other jobs out there. Having the right insurance will be of huge help. You can check out the best insurance for contractors at next-insurance.com.

General liability insurance

This is the type of insurance that will cover the cost of medical injuries of someone who is not part of the team working on the task. This includes the owner of the place or even someone who was just passing by. The medical injuries could be severe. Regardless, the person could file a claim and this type of insurance will cover the medical costs and other payments included in the claim.

Commercial vehicle insurance

Contractors use different types of vehicles in doing the job. This depends on the nature of the task being worked on. Whether it is a pickup truck or a bulldozer, it can be very expensive. If they were severely broken or even stolen, this insurance would help cover the cost. Without the right vehicle, any task would not move forward. Therefore, insurance is a big help.  

Workers’ compensation insurance

This is intended for employees who have suffered from injuries while working. The insurance will cover the medical costs. Aside from the payment of hospital bills, this insurance will also help cover the wages of the person who can’t carry out their job while recuperating from the injury.

Equipment and tools insurance

Contractors also need different tools and equipment to do the job. Having this kind of insurance helps in the event that the tools are stolen or badly damaged.

Installation coverage insurance

It is also possible that while working on a certain task, there are damages made to the property. For instance, while working on a bathroom remodel, a heavy tool is suddenly dropped on the sink and it breaks the whole sink. The owner will file a claim to pay for the repair or replacement of the broken sink. This insurance will cover the repair/replacement costs.

Contractors need all these types of insurance as they cover different expenses. As a contractor, you may opt not to have some of them, but you are placing yourself at great risk. You would rather spend more money now to get the right coverage than regret later that you did not take the right steps to protect yourself and your business. Sometimes, the expenses incurred due to a claim are too high and if there are claims against you or your business, you would be left in financial limbo. You don’t want this to happen, so you better be prepared.

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