What is Contractor’s Insurance?General Liability Coverage: If your construction site or office ever gets any visitors, you need general liability. This portion of your contractor insurance will pay off the medical bills of anyone who gets hurt while visiting your business property. It will even cover the repair or replacement costs when a visitor's personal property such as their car is damaged on the premises. Without general liability, you could be sued by your guests for the cost of medical treatment or property repairs, so it is an important aspect of your contractor insurance.
Tools & Equipment Coverage (BOP): You cannot go long without using certain equipment or tools in this business, which means that you would be inconvenienced if those items were ever stolen or damaged. If you could not afford to immediately replace the tools of the trade if anything happened to them, you need tools & equipment coverage. This covers any tools or machinery you use for work.
Workers’ Compensation: Workers' compensation is a form of insurance providing wage replacement and medical benefits to employees injured in the course of employment in exchange for mandatory relinquishment of the employee's right to sue his or her employer for the tort of negligence.
Business Vehicle Insurance: Whether you just run errands for your business or need to get to different construction sites in the area, protect yourself and your car with business vehicle coverage. You need to add this to your insurance plan because your own personal car insurance will not pay for the damage when you cause an accident as you are driving for your company.
Bond: The point of adding a surety bond to your contractor insurance is to guarantee your construction services. Without a bond, you may have to pay a fine if you do not fulfil the obligations to which you have agreed.
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