A Guide To Buying Contractor Insurance
When buying contractor insurance, it’s essential to understand the different types of coverage available to ensure you’re adequately protected. Bixler Insurance provides contractors insurance in Berne, IN, Geneva, IN, Fort Wayne, Decatur, IN, Bluffton and surrounding areas.
This is a guide to help you navigate the process:
- Assess Your Needs: Start by evaluating the specific risks associated with your trade. Different contractors face different risks, so consider factors like the size of your projects, the types of work you do, and your location.
- General Liability Insurance: This is a fundamental policy for contractors. It covers bodily injury, property damage, and legal fees related to accidents that occur on the job. It’s essential for protecting your business from claims that could arise from accidents or damages during a project.
- Professional Liability Insurance: Also known as errors and omissions insurance, this covers you in case a client sues for mistakes or negligence in your professional services. This is especially important for contractors who provide advice or design services.
- Workers’ Compensation Insurance: This insurance covers medical expenses and lost wages for employees who are injured on the job. Most states require this coverage if you have employees, and it can protect you from potential lawsuits related to workplace injuries.
- Automobile Insurance: If you use vehicles for business purposes, commercial auto insurance is crucial. It covers damage to vehicles and injuries in accidents involving company vehicles.
- Equipment and Tool Insurance: This covers damage or loss of tools and equipment that are essential for your work. It can be particularly valuable if you own expensive machinery or tools.
- Bonding: While not insurance, bonding protects clients in case you fail to meet contractual obligations. It’s often required for larger projects or by certain clients.
- Compare Policies: Different insurers offer varying coverage options and prices. Obtain quotes from multiple providers, and compare the coverage limits, deductibles, and exclusions.
- Review Annually: Your insurance needs may change as your business grows or evolves. Review your coverage regularly to ensure it still meets your needs.
By understanding these key aspects and carefully selecting your coverage, you can protect your business from potential risks and liabilities.
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