With so many different insurance options on the market today, understanding them all can be confusing. We don’t believe you should be forced to break each type of insurance down to the basics, so we did it for you. Today, we are focusing on Contractor’s insurance. We will let you know who should be concerned with purchasing it, what the major coverage considerations are, and we will explain Liability Insurance.
Who needs Contractor’s Insurance?
All contractors should have contractors liability insurance and other coverages to match their specific risks. Professions that may need contractors insurance include:
- Construction contractors
- Plumbers, painters, electricians, carpenters
- Repair specialists
- House and carpet cleaners
- Bodily Injury / Property damage: Contractors who work with heavy machinery and tools should recognize that they are at risk for injury due to work oriented mishaps or faulty machinery.
- Medical and Disability: Protection from loss of income due to illness or injury
- Errors and Omissions: Contractors like accountants, interior designers, and financial planners who provide consultation should be concerned with losses a client may face due to a recommendation.
- Product and Liquor Liabilities: Contractors who may serve food and liquor at events should be concerned with possible illnesses and injuries as a result of the consumption of their food and liquor.
There are multiple categories of coverage for complete liability protection:
- General liability: First, protects against bodily injury – If you or one of your employees cause injury or death to a third party during the course of work, it provides for medical care for the injured person, and covers legal defense if you are sued.. And second, it protects against property damage – provides coverage if you or an employee causes damage to another person’s property during work.
- Completed operations / project: Provides coverage if a project you complete has an issue or inflicts damage. This coverage extends to any product you sell or distribute.
- Advertising personal injury: Covers the risk of damaging another person’s reputation or causing a loss through slander, libel or false advertising claims.
- Contract liability: This form of contractor’s insurance covers you in a contract dispute. This is not always entailed in general liability insurance, so check with your Rhode Island insurance agent to see if you are covered.
The specific type of Rhode Island contractor’s insurance coverage you need will depend on your profession. You can work with your insurance agent to figure out which coverages you will need to avoid exposing yourself to costly liabilities.