Contractors need to have business insurance in order to secure ongoing projects. In some states, it is not required by law, but business owners and homeowners are reluctant to hire contractors without coverage.

General liability coverage will cover your contracting business for injuries or damage that you legally must pay. If you are wrongfully sued, liability insurance will cover your legal fees. This type of insurance generally covers these types of business liabilities:

• Bodily Injury – This refers to physical harm caused to someone at your business, or caused by an employee of your company, even at another site.
• Personal Injury – This coverage handles damage to the rights or reputation of a business or person caused by wrongful eviction, false arrest, invasion of privacy, copyright infringement, libel, slander, and similar wrongdoings.
• Advertising Injury – These are losses that have been caused by your written or spoken advertising, including ads that criticize competitors.
• Liability Insurance for Independent Contractors – This covers damage from acts by any independent contractors hired by your firm.
• Product or Completed Operations Liability – This covers losses that occur after your company has finished work for customers, like repairs, or from the manufacturing or distribution of products.

General liability coverage may also cover medical payments. This pays medical bills for people injured at your site. They may be visitors, clients or customers. The coverage exists up to a specific amount, regardless of who was at fault. This coverage can be confusing, but Tidwell Insurance Agency has all the answers to your questions.

Contractor’s insurance costs vary according to a few factors. Your estimated payroll for the year upcoming is important in factoring cost. If your payroll is higher, and you do more work, your carrier is more exposed, and they take on more risk. This will mean that you must pay higher premiums.

There are other factors that may also affect your contractor’s insurance cost. They include:

• Monies paid to sub-contractors working for you
• How much money your company made before expenses
• The type of work your company does
• Your geographic location

When you choose a carrier for your insurance needs, select competent agents who work with reputable companies. We can help you choose a company that specializes in contractor insurance requirements.

Will policies cover partially completed work, or materials left at project sites? What about raw materials in transit or stored off-site? Are there special policies for companies that deal with hazardous chemicals? Get the answers to these questions and more from The Tidwell Agency.