What are the three primary types of liability insurance coverage?

General, professional and employer liabilities are the three major forms of liability protection available today.

Why Is Contractor Insurance Essential?

Liability insurance provides coverage against damage claims caused by contractors when performing work on your property and injury claims that may arise should someone get injured while performing duty. It also covers court judgments or medical or funeral expenses should someone become seriously ill while on duty.

What Is Contractor Risk Insurance (CAR)?

Contractor's all risk (CAR) coverage provides protection for losses related to fire, flood, windstorm, earthquakes or construction faults occurring during a building project. Contractors hired as project leaders should strongly consider taking out CAR policies.

Are there ways I can protect myself as an independent contractor?

Draft an explicit scope and contract agreement with clients; this will establish open lines of communication. Secure general/professional liability coverage from The Allen Thomas Group as soon as you start operating a business.

Contractor Insurance

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Contractor Information

Protect Your Contracting Business with Tailored Commercial Insurance

Shield Your Business: A Contractor's Guide to Insurance

As a contractor, your business is your livelihood. You've worked hard to grow your company and reputation. That's why it's vital to protect your business with comprehensive insurance. At The Allen Thomas Group, we understand the unique risks contractors face and provide tailored insurance solutions to keep your business safe. Whether you're a general contractor, trade contractor, or independent contractor, read on to find out why insurance matters and how to choose the right coverage.

Construction is an inherently risky industry. Each job site brings potential for injuries, property damage, and expensive lawsuits. Just one incident can devastate your business if you're not properly insured. From general liability to workers' comp to builder's risk, contractors need several types of insurance. Yet many make the mistake of being underinsured or having gaps in coverage. Don't let this affect you. As a contractor myself, I've seen firsthand how critical insurance is. At The Allen Thomas Group, our trusted advisors will analyze your business risks and recommend comprehensive policies to protect you. With the right insurance partner, you can run your business with confidence knowing you've safeguarded your company's finances and reputation. This guide will provide an overview of key coverages, insurance costs, and tips for choosing the best insurance agency for your contracting business.

Why Contractors Need Insurance

Running a contracting business comes with many risks that can lead to costly claims, lawsuits, or losses. Without proper insurance, a single incident could cripple your finances or even put you out of business. Some key reasons contractors need insurance include:

- Lawsuits - You may face liability claims over property damage, injuries, mistakes, and more. The right insurance protects you if sued.

- Employee injuries - Workers' comp insurance is required in most states to cover medical bills and lost wages for injured employees.

- Property damage - Accidents occur. Builder's risk and equipment/tools coverage protects you if items are damaged or stolen at a job site.

- Contract requirements - Many construction contracts require you to carry certain insurance limits and name the client as an additional insured.

- Reputational damage - Lawsuits and uncovered losses can harm your business' reputation. Insurance helps cover losses so you can keep your good name.

- Business investments - Your tools, equipment, offices and other business assets represent a significant investment. Property insurance protects your assets in a loss.

Adequate insurance gives you security and peace of mind to focus on your work, not risks. It's a vital cost of doing business.

Key Coverages for Contractors

As a contractor, you need several types of insurance for full protection. Below are key policies every contractor should carry:

- General liability insurance - This covers claims of bodily injury, property damage, personal injury, and advertising injury. It protects you in lawsuits, employee injuries, 3rd party property damage, etc.

- Workers' compensation - Pays for medical treatment and lost wages for employees injured on the job. It's mandated in most states.

- Builder's risk insurance - Also called course of construction, it covers projects under construction for perils like theft, vandalism, fire damage, natural disasters.

- Business auto insurance - Covers liability and damage involving vehicles used for business purposes like work trucks.

- Tools, equipment, and materials coverage - Insures business tools, equipment, supplies/inventory for loss or damage at the job site or in transit.

- Professional liability - Required for design/build contractors and covers mistakes in your professional work.

- Commercial property - Protects your offices, warehouses, showrooms for perils like fire, theft, vandalism, smoke damage, etc.

This mix of insurance coverages provides vital protection for your contracting business's exposures. A good agent can evaluate your unique risks and recommend optimal coverage, limits and additions like umbrella policies.

The Allen Thomas Group has the experience, carrier access and resources to tailor comprehensive coverage at competitive prices. We'll help you analyze risks, close gaps, and choose cost-effective policies so you can keep focused on what matters most – excelling at the work you love. Our customized contractor insurance packages provide:

- Coverage gaps filled
- Bundles for cost savings
- Proper limits to safeguard your assets
- Advice to reduce risks
- Hassle-free claims service
- Year-round policy access & review

For over 20 years, The Allen Thomas Group has been a trusted insurance partner for general contractors, trade contractors, and independent contractors. We'll stand by you like family and empower you to run your business with confidence. Don't wait for a loss to realize you're underinsured – be proactive and protect your assets with The Allen Thomas Group. Call (440) 826-3676 for a free contractor insurance quote today.

More Critical Information About Contractor Insurance

Tool Insurance For Contractors

Without insurance, defending yourself in court would cost out-of-pocket expenses; with general liability coverage they are covered automatically.  Contractors face unique and often dangerous risks everyday on the job. Simply call us to speak with a licensed agent who can help you with your commercial auto and business insurance quotes. Simply call us to speak with a licensed agent who can help you with your commercial auto and business insurance quotes.

A 1099 worker hired for a photo shoot could face copyright infringement while remodeling contractors risk potentially injuring homeowners during work. Contractors insurance typically covers business liability exposures related to injuries sustained on client property by your business and is therefore covered by general liability coverage as an essential element of contractors insurance policies. Contractors insurance typically covers business liability exposures related to injuries sustained on client property by your business and is therefore covered by general liability coverage as an essential element of contractors insurance policies.

Workers' compensation coverage provides medical costs and lost wages related to work-related injuries or illnesses that occur on the job, and is required by most states for businesses that employ employees or those working in riskier industries, like roofing and building trades. While insurance is an expense, it's the most vital investment you'll make to protect your business. While insurance is an expense, it's the most vital investment you'll make to protect your business.

Helps cover medical expenses and legal fees you incur while defending against a lawsuit from a covered event. Here are three key aspects that contractors should consider when dealing with legal claims and litigation:1. Here are three key aspects that contractors should consider when dealing with legal claims and litigation:1.

Contractors Pollution Insurance

For example, the photographer could be accused of copyright infringement, while the remodeler faces the risk of potential injury to the homeowner. Without it, they could be held liable if something were to go wrong during work related activities and lead to claims being brought against them for potential wrongdoings or accidents caused by you and/or your work. This mix of insurance coverages provides vital protection for your contracting business's exposures. This mix of insurance coverages provides vital protection for your contracting business's exposures.

As an independent insurance agency, The Allen Thomas Group has the experience, carrier access and resources to protect contracting businesses. Requiring Surety Bonds is common practice for commercial construction and public works projects. Requiring Surety Bonds is common practice for commercial construction and public works projects.

If a third party sues the additional insured over work done for the business, the general liability insurance policy can address the claim. Contractors insurance usually covers business liability exposures, such as injuries or damage to a client’s property for which your business is responsible. Contractors insurance usually covers business liability exposures, such as injuries or damage to a client’s property for which your business is responsible.

Timelines, change orders and contract administration can add additional stressors. Some independent contractors are required to have this coverage to work in riskier professions, such as roofing and building trades. Some independent contractors are required to have this coverage to work in riskier professions, such as roofing and building trades.

All content and materials are for general informational purposes only. Your cost depends on several variables such as the extent of coverage you require, your specific trade and location.  Your cost depends on several variables such as the extent of coverage you require, your specific trade and location. 

General Liability Insurance For Roofers

It covers the cost of repairs or replacement of damaged property, as well as any legal fees associated with a liability claim.2. Insurance rates for contractors vary widely based on factors like:Your risk profile - higher risk trades like roofing and electrical cost more than lower risk trades like painting or flooring. Insurance rates for contractors vary widely based on factors like:Your risk profile - higher risk trades like roofing and electrical cost more than lower risk trades like painting or flooring.

Being held liable for repairs or replacement on a large-scale project could be financially devastating without Builders Risk Insurance. Being held liable for repairs or replacement on a large-scale project could be financially devastating without Builders Risk Insurance.

A BOP bundles both coverages into one policy with usually lower insurance premiums than purchasing them separately from individual insurers.  A BOP bundles both coverages into one policy with usually lower insurance premiums than purchasing them separately from individual insurers. 

This coverage allows you to promptly fix damages and move forward without major delays or out-of-pocket expenses.- Covers damage to the ongoing construction project - Includes liability coverage for damage caused to surrounding properties- Allows timely repairs so projects stay on scheduleProtect Your Investment with Surety Bonds On any sizable construction project, owners and lenders need assurance you will complete work to standard and on budget. This coverage allows you to promptly fix damages and move forward without major delays or out-of-pocket expenses.- Covers damage to the ongoing construction project - Includes liability coverage for damage caused to surrounding properties- Allows timely repairs so projects stay on scheduleProtect Your Investment with Surety Bonds On any sizable construction project, owners and lenders need assurance you will complete work to standard and on budget.

Construction Insurance Types