Insurance for contractors
From furnaces in the winter to roof replacements in the spring, air-conditioning in the summer and basement renovations in the fall, there is always something that needs to be installed, repaired or replaced. Contractors are needed year-round and it’s important to protect your business from the unexpected no matter the season.
Contractors have unique insurance needs
Whether you’re a roofer, electrician, plumber, HVAC technician or a general contractor doing installation, service or repair – you need insurance to protect your assets, equipment, the service you performed and the project you completed.
As with any business, regardless of its size or operations, the insurance to have is almost always a commercial general liability (CGL) policy because it protects the business and any third party if the business directly causes harm and is sued.
What does CGL cover?
Property damage and bodily injury – this coverage pays for legal costs if the business is found to be legally responsible for a third party’s bodily injury such as a slip and fall, or damage to their property.
Personal injury – this coverage pays for legal costs if the business is found to be legally responsible for harm to reputation such as slander or libel.
Tenants’ Legal Liability – this coverage applies to premises rented by the business and pays the landlord for damage to the unit caused by a covered event. This coverage is required by landlords if you rent space for your business.
Medical payments – this coverage helps pay for a third party’s medical bills if they were injured due to your business operations.
What other insurance should contractors have?
A commercial policy package is often available from insurance providers that bundles a number of coverages (in addition to CGL) that most contractors need.
Here are some coverages available. You may need additional or other types of coverage depending on your operations.
Completed operations
Any number of mistakes can happen that could result in a faulty installation or something that doesn’t work. This coverage pays for the expense to correct the work you’ve done. For any contractor, this is a key coverage that’s included in a CGL policy. For example, a kitchen counter you installed suddenly came loose, damaging the counter and flooring. The completed operations portion of your liability policy would pay for necessary repairs.
Commercial property
A broad coverage that protects the business’s physical assets such as:
- Real property – covers the building and other structures within the property or premises.
- Equipment such as boiler and machinery, computers, office furniture and more.
Installation floater
Covers materials and supplies that are needed for the project that are onsite for loss or damage.
Tools and equipment
Covers the tools and equipment that you use for loss or damage, whether they are owned, leased or rented.
Cyber liability
Covers the costs of restoring data, legal action, investigation and remediation in the event of a cyberattack or data breach.
Simple or complex business insurance needs? A broker is the best way forward.
Whether you’re an electrician, plumber, general contractor or any type of tradesperson, it’s best to seek the advice of a licensed commercial broker and discuss your business operations to get the right insurance solution. As your business grows, your coverage needs also grow – an insurance broker can assess and maintain your policy to help ensure you have protection in place.
At McClelland Insurance, our brokers have the expertise and experience in various industries and will work with you to provide the best available coverage that’s tailored for your business.
Ready to get coverage or have more questions?
Visit our commercial insurance page
to learn more about insurance for contractors.
The content on this page is for information only. The insurance products described are subject to terms, conditions, limitations and exclusions that are outlined in the policy wording. Please refer to the policy wording for complete details.