Types of Contractors Insurance You Need

​Getting a contract to build someone's dream home is an exciting experience. However, before picking up your tools, take a few precautionary steps. Though not as arresting as the sound of a drill, regardless of your task's size, you can't afford to begin without having some contractor's insurance set up.

Types of Contractors Insurance
As a contractor within the construction industry, you must know the type of insurance you need. Since you're technically self-employed, numerous responsibilities lie solely on you. Here are some of the key policies you may need:

1. Public Liability Insurance
   This is arguably the most critical type of insurance for a tradesman operating as a subcontractor or contractor. Most contracts require this policy, with some insurers even specifying how much coverage is needed. As a contractor, you're responsible for your every action, so if you're negligent and end up with the damaged property or an injured third party, you have to pay.
   
   
2. Income Protection Insurance
   As a contractor, you're not eligible for any worker's compensation or sick leave, so if you're unable to work, you won't get any income. Since you rely solely on your work's jobs, you must protect yourself and have a substituted income when you can't work.
   
   
3. Contractual Liability Insurance
   Most companies you'll go into business with will likely be larger than your own company. Being larger, they have access to more money and a legal team. Thus the contracts drawn up will most likely be drafted to benefit the larger company. If a client dumps all the responsibility on you, you may find yourself facing damages that have nothing to do with you. 
   
   This cover protects you if you're sued due to contractual obligations, not direct negligence.
   
   
4. Tool Insurance
   Your clients most likely won't ask for this coverage, but, seeing as you'll be using your tools, you should make sure they're protected. This coverage insures you if your gear is stolen or damaged while on site. Take note, however, that to successfully file for a claim under theft, there needs to be evidence of forced entry. Otherwise, an insurer may refuse to payout.

 
Conclusion
As a contractor, you're responsible for any error and damage that happens to you or a third party on-site. This is why you must protect yourself with contractor's insurance to ensure that you're safe in the face of anything. 

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.