Being a contractor does not just mean being on-site and on-time. Financial and legal risk is always present from the moment a crew enters a property until the property is declared complete. Weather, equipment damage, third-party injury, and contractual disputes are all parts of the things that happen on a construction site. Having a good coverage of contractor insurance can make the business easy and safe, not just for contractors but also for the overall property. Before signing up for any such insurance, it is important to know what insurers in the contractor insurance market provide. For a better understanding, visit https://sogoinsurance.com/san-antonio/contractor-insurance/.
What Type Of Insurance Does A Contractor Require?
Business owners often think contractor insurance covers only specific types of coverage, but that is not the case. Usually, a single policy is not sufficient to cover all exposures, and the appropriate coverage varies significantly based on the type of work to be conducted.
The fundamental coverage is general liability. This type of liability covers against third-party claims for bodily injury, property damage, and some personal injuries related to existing or completed operations. A plumber who installs a pipe that later leaks and damages the structure, or an electrician whose work is involved in a structural problem, will be exactly the type of claim that general liability is designed to cover. In the absence of such coverage, very often the recourse is that of legal defense, and the cost of this may be enough to topple a business, even if a cause of action is found.
Workers’ compensation is another insurance policy, similar to general liability, which may be mandatory under certain jurisdictions. For instance, it is required by Texas law and is treated as a mandate for the construction industry. A workers’ compensation policy protects against medical costs and lost wages claims incurred on a worksite, preventing them from becoming a responsibility of the injured employee or the employer. But naturally, this type of policy prevents any further legal battle by the injured employee on this account.
In addition to the two policies above, contractors may require commercial property insurance for inventory or tools and equipment, commercial auto coverage for business vehicles, and builders’ risk coverage for structures being built, as well as professional liability insurance if design or consulting is involved in their work.
Evaluate Coverage Options
A decision around the right coverage provided by a policy is not hinged on just the price of coverage. It envelops the actual risks faced by the business, the kind of work being undertaken, the number of people on board, the kind of equipment being used in the field, and the contractual requirements for the clients being serviced.
It is just as important to know what a policy does NOT cover. Generally, completed operations, subcontractor liability, and equipment in transit surprise contractors more than they should. As noted above, a level of basic due diligence that is always taken is reading the policy terms and not relying on summary descriptions to prevent the potentially costly surprises.
Contractors in certain areas, like San Antonio, work in a city that has a high level of residential development, commercial construction, and infrastructure building activity, all with their own risks. Visiting sogoinsurance.com to understand more about the coverage that is not a general template would be extremely helpful in making the right contractor insurance decision.
