Contractors Insurance
What Does Contractors Insurance Cover?
Contractors insurance, or general liability insurance for contractors, covers claims that may arise from bodily injury, property damage, or personal injury (such as libel or slander). General liability insurance for contractors can vary in both terms of coverage and cost based on your industry, business size, operations, and location(s) of work.
General Contractor Insurance
General Contractor Insurance or General Contractors Insurance covers basic activities of a general contractor, regardless of whether the general contractor is working on a commercial or residential project. Insurance for a general contractor can include coverage for property damages that may occur on the job as well as injuries to person(s) on-site.
A general contractors insurance policy may offer basic coverage, but insurance for a general contractor does not necessarily include industry-specific nuances. For example, insurance for building contractors may include slightly different terms than a policy designed specifically for oil and gas contractors, marine contractors, or plumbing contractors, as each of these activities entail slightly different risks.
Choosing a contractor insurance policy that covers your industry-specific risks can help you improve your coverage value and fit more precisely with any additional policies that your business may have. Contractors insurance policy choices can also include business insurance for general contractors. Depending on the nature of your business, you may benefit from combining contractors insurance with an add-on policy such as pollution liability insurance, or additional workers compensation insurance.
Insurance Requirements for General Contractors
Contractors insurance requirements may vary depending on the context of project operations. For example, a municipality, school, or government may require minimum proof of coverage prior to awarding a contract, while a private homeowner may not. Even if proof of coverage is not required for a particular job, a contractor must be prepared to manage potential claims, such as bodily injury or property damage, that could arise from accidents or incidents on the job.
Types of Contractors Insurance
There are several types of contractors insurance, including, but not limited to: general contractor insurance, contractor equipment insurance, excavation contractor insurance, utility contractor insurance, heating/plumbing/HVAC contractor insurance, marine contractor insurance, and oil and gas contractor insurance.
General Liability Insurance for Contractors
General liability insurance for contractors and independent contractor insurance costs can vary depending on the deductibles and nature of the independent contractor work. Sub contractors insurance can be added to General Contractor Insurance; however, in some cases it would be beneficial to add a separate workers compensation policy. With changing federal regulations regarding employment, it is important to make sure that sub contractor arrangements are not confused with employee relationships. Your Guardify agent can help you to determine the best insurance policy combination for your business needs.
Excavation Contractor Insurance
Excavation contractors insurance includes coverage for unique risks associated with excavation. Insurance for excavation contractors should include provisions for heavy equipment, potential interference with public utilities, as well as concerns regarding soil compaction and runoff. Business insurance for excavation contractors should also include coverage for contracts, errors and omissions, and project delays.
Heating Contractor Insurance
Heating contractor insurance is a form of utilities contractor insurance. Heating contractors face risks with installation of heating appliances, as well as electrical hazards. Contractors insurance for professionals that work with heating and cooling equipment should make sure that labor, equipment, and contract-related risks are covered under their policy.
Marine Contractor Insurance
Marine contractors liability insurance is specifically designed to cover risks associated with marine-related contract work, including but not limited to, marinas, brownwater, ocean marine, and inland waterway activities. Marine contractors insurance should offer coverage for specialized water, weather, and pollution risks.
Oil & Gas Contractor Insurance
Oil and gas contractors insurance covers unique risks for the oil and gas industry. Insurance for oil and gas contractors should include employee safety, pollution liability, legal and regulatory responsibilities, as well as general risks associated with the extraction, handling, storage and transport of hazardous materials. A general contractors policy may not offer sufficient coverage for pollution or safety given the high-risk nature of oil and gas operations.
Plumbing Contractor Insurance
Plumbing contractors insurance is a form of utilities contractor insurance with a focus on plumbing. Federal, state, and municipal governments may require certain types of insurance as a prerequisite to selecting a plumbing contractor. Insurance for plumbing contractors should include coverage for equipment, persons, contracts, and project-related risks. In some cases, plumbing contractor insurance can benefit from an add-on pollution liability policy.
Utility Contractor Insurance
Utility contractors insurance may include electricity, plumbing, or heating-and-cooling contract work. Utility contractors are often obligated to make equipment repairs under high-risk conditions (for example, flood, windstorm, or severe weather). Insurance for utility contractors should be checked against any legal requirements, as utility contractors for government-related projects may be obligated to meet certain minimal standards for local, state, or federal governments.
Insurance for HVAC Contractors
Business insurance for HVAC contractors should include coverage for professional contracts, errors and omissions, and financial operations of HVAC companies. HVAC contractor liability insurance, also known as general liability insurance for HVAC contractors, should include coverage for technicians at multiple, changing locations (as opposed to a policy that offers single-location coverage only). HVAC contractor insurance cost may vary according to the nature of work performed, and scale of the contractor's business. For example, a local, residential HVAC contractor may have different insurance requirements than a national HVAC contractor company that serves both public and commercial facilities.
Contractor Equipment Insurance
Contractor equipment insurance helps to cover equipment-related risks during the use of rented or owned equipment, including but not limited to: theft, repairs, weather-related damages, or breakdown on either a static site or multiple, changing locations of the contractors work. Contractors equipment insurance is sometimes classified as a form of “inland marine insurance” within the insurance industry, and can be combined with other coverages as a package or bundled policy option. Contractors equipment insurance can include both technology, heavy equipment, and rented or owned equipment.
Contractors Pollution Insurance
Pollution liability insurance for contractors helps to cover potential pollution concerns that may arise through contractor work. Contractor pollution liability insurance may be included in another policy or may be an add-on or policy extension option. Be sure to review both deductibles and limits of a pollution liability policy to verify that the policy provides adequate coverage in the event of claims.
Would You Like to Get a Contractors Liability Insurance Quote?
Your Guardify agent can help to provide a contractor liability insurance quote. Your Guardify agent may also be able to help you with any package policy or bundling options that could help you obtain a better value insurance package so that you can save on costs in the long run.
General Liability Insurance for Contractors in Texas
Texas contractor insurance requirements vary according to project, and certain types of projects may require proof of coverage. Your Guardify agent can help to answer questions about Texas contractor insurance or Texas general contractor insurance.