Insurance Every Contractor Should Have 

Regardless of experience, skill level and attention to detail, contractors and their employees may find themselves in inherently dangerous situations. Many significant perils and dangers are omnipresent on jobsites, including heavy machinery, motor vehicles, hazardous chemicals and sharp tools. As a responsible contractor, you likely understand the importance of insurance, but you also may need to watch your spending. Understanding which types of policies you may truly need can be helpful.

Are There Insurance Requirements?

When considering legal obligations regarding contractors insurance, you should be prepared to analyze your situation, possibly with the assistance of a qualified professional, such as those at Kris D Rogers & Associates. Applicable laws, requirements and regulations may vary based on various aspects of your circumstances.

In many cases, you may need to adhere to the following insurance-related requirements:

• Workers’ compensation insurance—If your contracting business has employees, you may be legally required to maintain workers’ compensation insurance. These policies can help manage medical bills, disability benefits and other losses and expenses if a worker is injured or becomes ill on the job. Independent contractors may be exempt from this requirement, but even in such cases, coverage may be advisable.

• Commercial auto insurance—When using cars, trucks, vans and other motor vehicles as part of your contracting operations, laws in most states, including Georgia, require commercial auto insurance. This mandate applies even if you only use a personal vehicle to haul materials or travel to a jobsite.

• Professional liability insurance—Although not typically required by law, clients and developers frequently require this type of coverage. Also known as errors and omissions insurance, these policies may help customers recoup losses if you fail to fulfill your contractual obligations. Lacking appropriate coverage could disqualify you from potential jobs and prospects.

What Other Types of Coverage Should I Consider?

Even if you’re not officially required to carry the following types of insurance, exploring the following options is often advisable:

• General liability insurance

• Commercial property insurance

• Business interruption insurance

• Builders risk insurance

• Inland marine insurance

• Commercial umbrella insurance

Get the Right Coverage

Contact Kris D Rogers & Associates in Woodstock, Georgia, today to learn more about contractors insurance requirements and coverage options or compare personalized quotes.

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.