Contractors Insurance in Bloomington, IN

When it comes to construction projects, whether it’s building a new home, renovating an office space or constructing a commercial building, contractors must account for various risks and exposures. Certain accidents, errors and other incidents may be inevitable regardless of how experienced and diligent a business and its employees may be, meaning that a lack of appropriate coverage could lead to devastating out-of-pocket losses. With this in mind, investing in adequate contractors insurance is necessary.

What Insurance Do Contractors Need?

Contractors insurance, also referred to as general contractor insurance, is a must-have for anyone working in the construction industry. It offers protection against a wide range of potential risks and liabilities. As such, having the right coverage can mean the difference between a successful project and a financial disaster.

A contractor’s exact coverage needs may vary, but in many cases, a sufficient contractors insurance portfolio should include the following:

• General liability insurance financially safeguards businesses against claims of property damage, bodily injury or personal injury that may occur during their work.
• Errors and omission insurance, also known as professional liability insurance, may help policyholders pay for losses and expenses if a client or other party accuses them of providing goods and services that were incomplete, late or otherwise inadequate.
• Commercial property insurance can financially protect a business’s assets, such as tools, equipment, inventory and office space.
• Builders risk insurance may help pay for losses involving job sites, including buildings being worked on, temporary structures, materials, equipment and key documents.
• Workers’ compensation insurance provides critical financial protection for contractors and their employees by helping to pay for medical expenses, lost wages, disability benefits and legal costs following work-related illnesses or injuries.
• Business interruption insurance may help contractors recoup financial losses and ongoing expenses if a covered incident disrupts their normal operations.
• Commercial auto insurance can help pay for losses involving a contractor’s motor vehicles, such as damage sustained while on a job site or being at fault for an accident that injures other motorists.

What Does Contractors Liability Insurance Cover?

Contractor liability insurance may refer to the combination of several types of coverage, including general liability insurance, errors and omissions insurance and commercial auto liability coverage. Typically, the liability components of a contractors insurance portfolio may help pay for losses arising from the following:

• Accidental injuries to third parties on a job site
• Damage to other parties’ property during the construction process
• Lawsuits related to construction defects or design errors
• Accidents involving a contractor’s motor vehicles
• Legal expenses in case you need to defend against a claim or lawsuit

Do You Have to Carry Insurance for Independent Contractors?

If a project includes subcontractors and independent contractors, they typically need their own insurance. Generally, independent contractors should carry their own insurance to cover their potential liability for errors and losses. However, developers, general contractors and other parties need to verify adequate coverage before other parties can start working on a project. Requiring proof of insurance is a common practice to protect the financial interests of all parties involved in a job.

How Do You Know if Your Contractor is Bonded and Insured?

Project owners and developers should always ensure that contractors are bonded and insured. Being bonded means they have secured a form of financial guarantee to cover potential financial losses resulting from their work. Insurance, on the other hand, covers various types of liabilities. To confirm a contractor’s status, parties should request a contractor insurance quote and proof of bonding.

Get the Right Coverage

Contact Thornburg Insurance Agency in Huntington, West Virginia, today to begin exploring your contractors insurance options and assembling an optimal coverage portfolio.