What is contractors insurance?
Contractors are exposed to a myriad of risks that they ought to protect against. Contractors insurance may give those working in Pennsylvania a myriad of protections.
Contractors insurance policies offer tailored coverages for businesses in construction or the trades. Policies usually offer contractors protection from liability and property risks.
Which Pennsylvania businesses should have contractor liability insurance?
Contractor liability insurance is something that most Pennsylvania businesses involved in construction and/or skilled trades should have. Property insurance protections are also broadly recommended.
For example, businesses such as the following often get this type of insurance policy:
- General contractors
- Subcontractors
- Commercial construction crews
- Residential construction crews
- Remodelers and demolition crews
- Specialist construction companies (e.g. marine)
- Tradespeople (e.g. roofers, plumbers, HVAC, etc.)
What coverages are typically included in contractors policies?
Contractors policies typically provide multiple protections by offering multiple coverages. These can include property coverages, which primarily insure assets. They also can include liability coverages, which mainly insure against incidents where the business is allegedly responsible for another’s harm.
Some common property protections that policies might offer include:
- Commercial Building Insurance: May protect property owned by a contractor’s business. This could include an office building, garage, storage facility, or other structures.
- Commercial Contents Insurance: May protect items when they’re at a contractor’s property. Covered items could include building materials, equipment, tools, and other supplies/consumables.
- Builders Risk Insurance: May protect building materials, equipment, tools, and supplies/consumables when they’re at a worksite. Coverage might also extend to structures that are worked on.
- Inland Marine Insurance: May protect building materials, equipment, tools, and supplies/consumables when they’re transported to and from work sites.
- Equipment Breakdown Insurance: May protect against unexpected breakdowns of essential equipment, often covering the costs of emergency repairs.
Contractor liability insurance protections can include:
- General Contractor Liability Insurance: May cover accidents resulting in third-party injuries or property damage. This normally includes basic accidents at the contractor’s facility or on worksites.
- Commercial Auto Insurance: May cover contractor’s trucks, vans, or other work vehicles, typically protecting against accidents and other damage.
- Commercial Umbrella Insurance: May cover legal claims and settlements that go beyond the limits of another, underlying liability insurance coverage.
What work can contractors policies cover?
Contractors policies can cover a broad range of construction and trade work. Depending on its terms, a policy might extend to new residential construction, new commercial construction, renovation, remodeling, or trade services like plumbing, electrical, and HVAC work.
An insurance agent specializing in contractor liability insurance can make sure a chosen policy will cover the particular work that a contractor or tradesperson does.
Can a contractor policy cover multiple worksites simultaneously?
Many contractor policies are able to cover multiple worksites simultaneously, but it’s important to check the terms of a specific policy. A knowledgeable insurance agent can help contractors find protection for multiple sites.
Do contractors policies come with construction bonds?
Construction bonds are generally purchased separately from contractors policies. However, many insurers that offer contractors policies also provide construction bonds. An experienced agent can likely assist in obtaining both.
How much do contractors pay for their insurance?
The premiums that contractors pay can vary widely. Insurance companies often base premiums on factors like:
- Location and size of any insured buildings
- Type and value of any insured vehicles
- Kinds of projects being insured
- Contractor’s recent insurance claims history
- Other factors as determined by an insurer
To find out how much insurance will cost for a project or projects, contractors can work with an independent insurance agent. Independent agents aren’t linked with any one insurer, so they can request custom quotes from several companies that underwrite these policies.
Where can Pennsylvania businesses find contractors insurance?
If you’re a contractor in Pennsylvania, get in touch with the independent insurance agents at The Miller Financial Group for help with contractors insurance. We’ll help you assess your business’s coverage needs, and then find the best policy that meets those needs well. Together, we can make sure your business is properly protected against the risks it faces.
