What Insurance Should Contractors Consider? 

In addition to being part of one of the most dangerous and accident-prone industries—construction—contractors are also often beholden to stringent contractual obligations and timelines. Even slight mishaps or delays could lead to costly financial losses and lawsuits. Insurance can be a huge difference maker when these situations occur, but understanding what types of coverage you may need can be complicated. At Integrity Insurance Agency Inc, we’re here to help.

Are Contractors Required to Have Insurance?

As a contractor, you may have some leeway regarding insurance compared with larger construction firms; however, you’ll still typically need to abide by at least some mandates. Consider how you may be obligated to retain the following types of policies:

• Commercial auto insurance—If your contracting business uses cars, trucks, vans or other automobiles to conduct business functions, you’ll need this type of coverage. Legally required in Pennsylvania and most states, these policies are even necessary if you’re just using personal vehicles to travel to a job site.

• Workers’ compensation insurance—If you’re a general contractor or otherwise operate a larger business with your own employees, you’ll likely be required to carry workers’ compensation coverage. Independent contractors may be absolved of these obligations, but retaining coverage may be advisable if you’re injured while on a job.

• Professional liability insurance—Though not typically required by law, many clients and customers may require you to carry this type of coverage. Also known as errors and omissions insurance, these policies can help you access prospects that might otherwise not even consider doing business with you.

• General liability insurance—Some contractors may be legally obligated to carry these types of policies. For example, in Pennsylvania, the Home Improvement Consumer Protection Act requires coverage if you take on home improvement jobs. Certain jurisdictions may also have additional mandates, and clients often require general liability insurance.

Get the Right Coverage

Contact Integrity Insurance Agency Inc in Chadds Ford, Pennsylvania, today to learn more about contractors insurance and fulfill your coverage-related obligations.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.