Today, contracts between project owners and general contractors include specific details on the kind of liability coverage the contractor must provide for the project owner. The coverage is usually provided through the contractor’s business liability insurance with the project owner as a named insured. This coverage is just the beginning of meeting the contractor’s insurance needs, so it’s important to understand additional coverage options that can benefit your business.
Other Types of Coverage
Inland Marine insurance, workers compensation, premises operation liability insurance and projects-completed operations liability insurance are just some of the types of insurance that contractors should consider for self-protection from liability claims. Other risks that contractors may consider covering include:
Inland Marine Insurance
Inland marine insurance began in the United States as a way to insure goods that were moved via waterways or across the ocean. Today, it has less to do with the method of transportation than the fact that goods move from one location to another. Contractors buy inland marine insurance for the following protections:
- Property that is transported
- Premises under construction
- Heavy construction equipment
- Computer equipment and data
Most states in the US require employers to carry workers compensation insurance if they have at least one employee. Many contractors have crews that work on job sites and by law, these work crews must be covered by workers compensation insurance for injury, illness or death that is work-related.
Premises Operations Liability
This type of insurance protects builders from liability to third parties resulting from ongoing building site operations. Imagine someone takes a shortcut through your building site. The person trips over debris and injures their ankle. Premises liability insurance covers claims when third parties are injured or killed on the job site.
Products-Completed Operations Liability
Let’s say a residential apartment building that you built within the last year has an improperly installed electric panel that burst into flame and severely damaged two occupied units and the personal belongings of both residents. Projects-completed operations liability insurance provides financial protection for you and your company from damage claims from the residents and the building owner who must make repairs.
Contractors should have individual general liability protection for each job they work on that is tailored to the needs of a project. Talking with your insurance adviser before bidding on the job makes perfect sense, as you can pin down your estimated insurance expenses and build it into the contract price.
Are you covered? Call The Insurance Store USA at (833)-848-2477 for more information on contractors insurance.