It’s the biggest day of the year for any contractor. This is your project kick-off meeting. You’re ready to drive back to the office and finalize the bid in preparation for sending it off. But, before you leave the room, the client asks a question that stops you dead in your tracks.
They want to know if you have a specific type of insurance coverage or another. You haven’t thought about insurance since agreeing to take the job and finalizing your bid. Now you need to provide an answer.
What does contractor insurance cover, and why is it necessary for every renovation project? Below is a breakdown of what to look for when shopping for contractor insurance.
General Liability Insurance for Contractors
As a contractor, you are responsible for ensuring that your work meets all safety requirements and does not cause any damage to property. If something does go wrong, your contractor insurance will cover the cost of any repairs or compensation that is required. It is important to know where you are properly insured so that you can protect your business from any potential risks.
Professional Liability Insurance for Contractors
There are a few key things that contractor insurance covers with regard to professional liability insurance for contractors. This includes things like legal expenses, which can be covered in the event that a client sues you for damages. It can also cover things like settlements or judgments that are awarded to the client.
Business Property Contractor Insurance
As a business owner, it’s important to have the right insurance in place to protect your property, equipment, and vehicles. Contractor insurance is a type of business insurance that provides contractor coverage for these things in case of damage or theft.
Contractor’s Pollution Insurance
Contractors’ Pollution Policy coverage is typically broad in scope and includes coverage for both sudden and gradual pollution events. Sudden pollution events are typically covered under property damage and bodily injury coverage.
Gradual pollution events are typically covered under the clean-up costs coverage. It can be either a standalone policy or an endorsement of a contractor’s existing general liability policy.
Wrap-Up of Errors and Omissions Insurance for Contractors
Wrap-up of Errors and Omissions Insurance for Contractors generally provides protection for most business risks that a contractor may face. This includes financial losses due to errors in workmanship, as well as damages that may occur to the property of others while work is being performed.
In some cases, Wrap-up may also cover the costs of litigation if a contractor is sued as a result of their work. While coverage will vary depending on the individual policy, Wrap-up is typically one of the most comprehensive types of insurance available to contractors.
Contractor Insurance Coverage
It is important to know what your contractor insurance policy covers in order to make sure that you are protected. Your policy should cover any damage that is done to your property, as well as any injuries that occur on the job. If you have any questions about your policy, be sure to contact your insurance agent to get clarification.
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