Contractor Insurance

Things to Consider for Your Contractors Insurance Policy
With so many different types of contractors, contractors insurance coverage is a puzzle. There are general contractors as well as plumbing, heating, ventilation and air conditioning (HVAC). Additional contractors include those in electrical or excavation work to complicate the choices. There is no one-size-fits-all policy. A quick search of contracting accidents in the past year identifies how quickly any type of accident can happen.

Not only is it important to carry workers’ compensation insurance coverage, it is important to know what the requirements are in the state where work is being done. All contractors should verify that subcontractors have active workers’ compensation insurance coverage for themselves and their employees in order to avoid fines, penalties and liability for claims.

The definition of an independent contractor varies from state to state. In fact, it is so complex that a contractor or independent contractor can fill out and file IRS form SS-8. The IRS makes a determination after reviewing the information. Meeting all legal obligations regarding the worker’s status is solely that of the contractor, not the insurance agent or company or local, state or federal authorities. Those opening a store have insurance needs that are much easier to determine than the unusual circumstances that affect contractors insurance.

Contractors Have Unique Insurance Needs

Portable air compressors used at building sites deliver the power to operate various tools. There is a likelihood of damage while transporting the compressor from one location to another. Onsite, heavy equipment can run into or over the item. The contractors equipment coverage insurance policy protects against that damage.

Contractors renting equipment or power tools have the option of a short-term insurance policy that covers damage or loss. A forklift can hit the wall going around the corner of a building too quickly or a backhoe can get off-balance and slide down a slope. Rather than financial liability for the damaged equipment, the policy covers that loss.

Passersby and customers like to stop and admire the progress of the job. Suppose someone enters the site. A worker turns with a wooden beam and knocks them in the head, causing a fall and split head. Even though the area was posted with warnings and cautions, the contractor can be held responsible for at least a portion of the damages. Business liability insurance and medical payments coverage help with those expenses.

Prior to starting a business or new job, a contractor should review the current insurance policies with the agents or companies. Besides the above examples, business property insurance, errors and omissions insurance and other types of coverage can help a business stay afloat while problems are resolved.

For a personal discussion on Contractor insurance contact Tom Bruenn at 914-632-2222 or  request a quote online.

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