Insurance is a cost. As a Contractor the ability to control your costs is important. When it comes to insurance here is why buying the right insurance should be your priority.
1. General Liability
Protect yourself and your business from third party bodily injury or property damage claims.
Imagine you are an electrician, installing lights up on a 14 foot ceiling and you drop a piece of equipment and it smashes the homeowners’ $9000.00 granite countertop or $12,000 custom hardwood floors. You don’t want to have to pay for that accident out of your own pocket. What if that light isn’t wired properly, a fire starts 8 months later and burns that home to the ground? Do you have the proper liability coverage to protect you?
2. Tool Floater
Covers tools and equipment owned by the Insured and usual to the business of the Insured.
You worked hard to acquire all your tools of the trade. It’s an expensive venture.
You have $30,000 worth of tools stored in your cargo trailer. One morning you get up and the trailer and your life’s work tools are gone. Now what? Did you have the right insurance on them?
3. Contractors Equipment
Covers contractors’ equipment owned and the property of others of a similar nature for which the insured is legally liable including while in transit. (Broad form)
As with tools, your contractors’ equipment is open to theft or other causes of loss, but your equipment is even more valuable. “What’s the difference between my tools and equipment” you might ask. Typically “tools” are valued up to $1000.00 per item, whereas “equipment” is valued over $1000.00 per item; take your Skid Steer, Mini Excavator, Power Generator etc.
Ask your insurance broker about scheduling that equipment on your policy for proper coverage.
4. Rental Reimbursement
Can be added by endorsement to cover the cost of renting substitute equipment if covered property is out of service by a covered cause of loss.
That skid steer on your equipment schedule above got stolen overnight. The next morning when you discover it gone, you are scheduled to do a big excavation job for one of your best clients. If you can’t be there, you could lose the job and the income. Did you know your insurance policy could cover the rental of a replacement machine so you can get back on the job site and get the work done?
5. Installation Floater
Covers property of the insured or of others for which the insured is legally liable and which is being installed.
You are a plumbing and heating contractor, you just dropped off a brand new furnace and materials to the job site to be installed the next day. Overnight, vandals burn the project to the ground, including the furnace and materials you dropped off. Now what? How is that covered? Ask your insurance broker to make sure there is an Installation Floater on your policy to cover this type of scenario.
There are lots of other things to consider for insurance, faulty workmanship, course of construction, wrap up, contract language and more. Click here to contact us and learn why so many contractors trust Acera Insurance with their insurance needs.