The Basics Of Contractor’s Insurance And Its Importance In 2020

​Despite the cease in construction because of lockdown measures for COVID-19, there is a need to plan for future ventures. American society will not stay in quarantine for long, and investing in insurance of projects will ensure smoother future transactions. Contractor’s Insurance is one policy that should not be overlooked as these provide the necessary security to one’s contractor business.

Contractor’s Insurance
Efficiency is a must for construction projects resulting in the growing complexity of contracts that are involved in these undertakings. The line between the liabilities for design professionals and contractors is thinning, hence the importance of having a contractor’s insurance.

1. Addresses the risks that are involved with complex construction projects that are not in the scope of core coverages.
2. Generally divided into liability insurance covering legal costs and property insurance that pays for damages.

Importance
Before any investment is made, it is necessary to understand the reason why such an investment should be undertaken. The same goes for getting contractor’s insurance, especially at a time when everything unrelated to COVID-19 seems impractical.

1. Accidents are inevitable, hence it is necessary to have some sort of protection for additional expenses due to these.
2. Required by the law, although policies differ state by state.
3. Required by clients as an assurance of security in case of untoward incidents that may occur during the project.
4. Required by general contractors for subcontractors for the same reason stated above.

Types of Contractor’s Insurance
Knowing the types of contractor’s insurance is crucial in making an informed decision in choosing which plan to get. The policy that suits the interest of the client can then be tailored to further meet their expectations.

1. Commercial general liability covers for damage costs on another’s property or on injuries.
2. Worker’s compensation insurance pays for medical expenses because of injuries on employees.
3. Property insurance covers financial losses due to damages on the business property.
4. Commercial auto insurance pays for injuries caused by employees on another business vehicle. It also protects investments in business vehicles against crashes and theft.

Conclusion
The economy will soon recover from the damages of lockdown, and construction projects will rise in number again. For contractors, it is a necessity to invest in a contractor’s insurance to have a competitive edge over others.

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.