by Marie King
As a contractor what risks do you face? A construction site is one of the most dangerous places to work, so your particular risks are many, serious and unique to your occupation. Understanding your risks can guide your choice of business insurance that you need to lessen your exposure. Each type of insurance helps covers some of the myriad of liabilities that you have.
Some of the risks that you face that are covered by business insurance:
Contractors business insurance was devised to handle the special needs of the construction industry. It contains workers compensation, which provides help to workers injured on the job. That help includes a benefit to pay for medical expenses and a benefit to provide income during the recuperation period.
The second piece of contractors business insurance consists of general liability. General liability has four areas that it zeros in on: bodily injury, property loss, personal injury and advertising injury. This type of insurance protects against lawsuits, where you have injured other people, damaged their property, hurt their reputation or infringed on their copyright.
Commercial property insurance has a broad reaching definition and provides as a business insurance extensive coverage. It can include lost income, business interruption, buildings, computers, company papers and money. It also includes events such as fire, smoke, floods, etc. What it includes depends on whether it is an all-risk policy or a peril specific policy. All risk includes a laundry list of events or situations that will be covered. Peril specific focuses on a specific type of event like a flood, fire or tornado, and money will be paid out if one of these events happen.
Commercial vehicle is a form of business insurance that was developed to cover work vehicles not covered under regular car insurance. Your heavy equipment are many times vehicles that you want covered in case of damage. Often, your cars are driven by multiple drivers, and you want those drivers covered if injured.
According to Wikipedia, builder’s risk insurance is, “a special type of property insurance which indemnifies against damage to buildings while they are under construction. Builder’s risk insurance is coverage that protects a person’s or organization’s insurable interest in materials, fixtures and/or equipment being used in the construction or renovation of a building or structure should those items sustain physical loss or damage from a covered cause.”
All these types of business insurance reduce risk. What you need to do is determine with the help of your agent what your risks are and get insurance that will eliminate your exposure.