Contractor Career: Getting The Right Insurance For Your Business

Insurance needs for your contractor business should be researched and evaluated based on your specific business. The best way to ensure that you are going to have adequate coverage at a reasonable rate is to contact at least three insurance brokers and get advice as to what coverage your business needs and rates for that recommended coverage from each of the three. Then compare the information you have been given and make your decision. Get recommendations for insurance brokers from individuals you know who are already in business and are more than satisfied with the service they receive fromcontractor-career-getting-the-right-insurance-for-your-business their insurance broker.


The following descriptions are found on the SBA website. The types of insurance coverage to consider are:


General Liability: This type of insurance, also called “Umbrella Liability insurance” covers bodily injury, property damage, medical expenses, and costs of defending lawsuits, due to claims of negligence. This kind of insurance covers bodily injury to non-employees and property damage to property not belonging to the business.


Product Liability: Every product is capable of personal injury or property damage. Every service rendered is capable of personal injury or property damage. Businesses are considered liable for negligence, breach of an express or implied warranty, defective products, and defective warnings or instructions.


Home-Based Business Insurance: Home-owners’ insurance policies do not generally cover home-based business property, professional liability, personal and advertising injury, loss of business data, crime and theft, and disability. This type of coverage would provide these for a home-based business.


Property Insurance: This type of policy would cover your business buildings, business property, accounts receivable, and other miscellaneous items.


Criminal Insurance: This type of insurance would cover burglary, theft, vandalism, and employee theft and embezzlement.


Vehicle Insurance: You may need to have a separate policy to cover vehicles owned and operated by your business.


Key Person Insurance: This insurance is usually life insurance that names the corporation as beneficiary if an essential person dies or is disabled.


Business Interruption Insurance: This insurance would cover losses due to natural disasters, fires, and other catastrophes that would cause the business to shut down for a considerable amount of time.


Workers’ Compensation Insurance: This insurance is required by Virginia for every business that employs three or more employees. Worker’s Compensation Insurance pays for employees’ medical expenses and missed wages if injured while working.


All-Risk Builders’ Risk Insurance: This form of property insurance covers property owners and builders for buildings that are under construction. Typical cover would include theft, vandalism, accidental losses and damage and destruction. Construction must be in progress for the coverage to be in effect



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