CSIS Insurance Services, Inc. Blog
Contractors Insurance policies cover most risks that many contractors face when they are working on a project. Applying for one can be a grueling task that will take you weeks to finish. You don’t want to risk buying the wrong contractors insurance that can make or break a project. To help you out, here’s a quick guide to differentiate the most common types of contractors insurance.
General Liability Insurance for Contractors
This policy is enough to cover any third-party lawsuit regarding damage to property, advertising injuries, and bodily injuries. ‘Third-party’ means that this group or person is not working for you. This includes people that deliver your goods, worksite visitors, and potential clients. If someone experiences damage and blames your property for it, you can use the general liability to cover all the expenses that will be used for your defense.
You will need this insurance, especially if you are interacting with non-employees most of the time.
Workers’ Compensation Insurance for Contractors
Unlike the previous policy, this one is required by the state. Generally, it comes in two parts, the first being the payment for lost wages as well as the medical bill of your employee in case of injury. The second one will cover you in case your employee decides to sue you for negligence.
Different states have different methods of implementing workers’ compensation. Most construction businesses are required to apply for it. In Texas, this policy is not necessary for other jobs except in construction projects that are in partnership with the government.
Surety Bonds for Contractors
This policy will be more beneficial for your client than it will be for you. The policy will act as a safeguard that you will finish the project as per your written contract. If you fail to do so, the insurance company will reimburse the money that your client has given you. Most of the time, your provider will expect you to pay back whatever the amount is.
Contractors usually need four kinds of surety bonds: the contractor license bond, the bid bonds, payment bonds, and performance bonds. The state may require you to acquire contractor-specific bonds, but some of your potential clients may also inquire about the state of your bonds and insurance.
Construction sites are some of the most dangerous places to work. The risks in the area may result in unexpected damage and injuries that may threaten your contractor's business. Make sure that you are protecting your business by having the right insurance policies.
At CSIS Insurance Services, Inc, we do our best in making sure that our clients are well-protected with affordable and comprehensive policies. We make sure to go the extra mile to help you with your needs. To learn more about how we can help you, please contact our agency at (888) 501-2747 or Click Here to request a free quote.
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