How to Build a Contractor’s Insurance Program

Construction Risks

A contractor’s insurance coverage has become just as important to a contractor as it is to an architect or engineer. New methods of service delivery have created risks and exposures that need to be understood by Contractors. Contractors have many different liability exposures when they manage a building project, subcontract work, perform or subcontract a design, modify plans, change a manufacturer’s specifications, or provide construction management services to a project owner. Course of construction, accidents, timelines, change orders, and contract administration are all concerns.

Contractor’s Insurance Should Include:

The basic contractor insurance program should include property, commercial liability, auto, equipment coverage and excess liability.

Industry-specific products like contractor’s professional liability, owners’ and contractor’s protective, and railroad protective may need to be considered.

Contractor’s bonds: A contractor’s license bond is a license and permit bond that is designed to assist all types of contractors. In many states, contractor bonds are required and help ensure that the contractor will operate in compliance with the local statutes as well as laws.

As an independent contractor, you may need to have worker’s compensation insurance. Worker’s comp regulations are mandated state by state. If you are in business for yourself, and you do not have employees, you are most likely not required to buy worker’s comp.

If you are involved in certain kinds of work, you will need environmental liability coverage.

Depending on how the contract is written, you may need builder’s risk which covers the building from loss due to fire etc.

We specialize in Contractor’s insurance of every kind. If you are a new venture, or do not have insurance, we have a program for you.