A List of the Insurance Every Contractor Needs

Shawn Plummer, CRPC

Chartered Retirement Planning Counselor

Contractor Insurance

There are many different types of business insurance, but some of the most common for contractors include general liability, workers” compensation, property insurance, and automobile insurance. General liability protects you from third-party claims of bodily injury or property damage from your business operations. Workers” compensation covers medical expenses and lost wages for employees who are injured while working. Property insurance protects your equipment and tools from damage or theft, while automobile insurance covers damage to vehicles used for business purposes.

While having insurance is essential, it’s’ also important to ensure that you have the right type and amount of coverage for your specific needs. Again, an experienced independent insurance agent can help you assess your risks and ensure proper protection.

Contractors Liability Insurance

No one ever intends to cause injury or damage property, but accidents can happen. You may be held liable even if the accident wasn’t your fault if you are a contractor. That’s why it’s essential to have contractor liability insurance. This type of insurance can help cover the costs of an accident, including legal fees, settlements, and judgments. It can also help protect your business from financial ruin.

Ensure you are fully protected by assessing your risks and selecting a policy that meets your needs. Please don’t wait until it’s too late.

General Liability Insurance

Contractors face a unique set of risks when it comes to liability. Not only are you working on someone else’s property, but you are also often using equipment that could cause damage. As a result, it is essential to have a solid insurance policy in place if something goes wrong.

General liability is the basis of most insurance policies for contractors. This coverage will protect you if you are blamed for damage to someone’s property or if someone is injured while you are working. While no one likes to think about the possibility of an accident, it is always better to be prepared.

A good insurance policy will give you the peace of mind that comes with knowing that you are protected in case something goes wrong.

Errors And Omissions Insurance

As a contractor, you are always at risk of being accused of not completing a job properly. Even if you have done everything to the best of your abilities, one dissatisfied customer can claim you. This is where errors and omissions insurance comes in. Also known as professional liability insurance, this coverage will help pay for the costs of defending your business or correcting the problem.

This can give you peace of mind knowing that you are protected in case of any accusations. So before you start your next project, be sure to get errors and omissions insurance to help protect your business.

Workers Compensation Insurance

Being a contractor comes with a lot of responsibility – not only do you have to worry about the quality of your work, but you also have to ensure that your employees are safe. But, unfortunately, accidents happen, even when all the safety precautions are taken, and when they do, workers’ compensation can help to ease the financial burden.

Workers’ comp can help to cover medical expenses and lost wages due to injury or illness, giving you one less thing to worry about as you focus on recovery. In some cases, it can even provide death benefits to surviving family members.

Whether you’re a contractor just starting or an experienced pro, it’s essential to know that workers’ compensation is there to help if an accident happens.

Commercial Auto Insurance

If you’re a contractor, you likely need commercial auto insurance. Most states require this type of insurance for any work trucks that are titled to your business. Unfortunately, if you drive your truck to job sites, your car insurance probably won’t cover it.

A commercial auto policy can insure your personal vehicle if you use it for your business. So if you have a work truck and a personal car that you use for business purposes, you’ll need to get two separate policies. Commercial auto insurance is crucial for protecting your business from liability in the event of an accident. Ensure you’re properly covered by speaking to an insurance agent about your options.

Tools & Equipment Insurance

If you’re a contractor who frequently works at different locations, you might consider adding tools and equipment coverage to your general liability insurance. You’ll be covered if something happens to your gear while working. Whether it’s a broken allen key or a stolen wrench, this coverage can help you replace or repair your equipment. And if you have a lot of expensive gear, like compressors, the coverage can come in handy.

So if you’re looking for financial protection for your equipment, consider adding tools and equipment coverage to your insurance policy.

Disability Insurance

Because contractors are not employees of the companies they work for, they are not covered by insurance policies. This means that if a contractor is injured on the job, they will have to bear the entire cost of their medical treatment and may even be unable to work again. As a result, contractors need to have their disability insurance policy.

A good policy will provide income protection and medical coverage, ensuring that contractors can continue supporting themselves and their families even if they cannot work. In addition, a good policy will also cover the cost of hiring replacement workers so that the contractor’s business can continue to run smoothly even in their absence.

Without disability insurance, contractors put themselves at financial risk every time they take on a new job.

Accident Insurance

You put in long hours, often working in difficult or dangerous conditions. As a result, accidents are always a possibility. That’s why it’s crucial to have accident insurance. Accident insurance can help to cover the cost of medical treatment, lost wages, and other expenses resulting from an accident. In the event of a severe injury, it can even provide financial assistance for your family.

So if you’re a contractor, be sure to get covered. Accident insurance is an essential part of protecting yourself and your livelihood.

Accidental Death And Dismemberment Insurance

As a contractor, you are always at risk of injury on the job. But, even if you take every precaution, accidents can still happen. That’s why it’s essential to have Accidental Death And Dismemberment Insurance. This insurance will provide financial protection for your family if you are killed or injured in an accident. It will also help to cover your medical expenses and lost income.

In addition, if you are permanently disabled, the insurance will provide a lump sum payment to help you cover your living costs.

While no one likes to think about the possibility of accidents, it’s essential to be prepared for the worst. Having AD&D Insurance is one way to give yourself and your family peace of mind in case of an accident.

Life Insurance

As a contractor, you know your life is always on the line. Whether working on a construction site or driving a delivery truck, there’s always the potential for an accident. That’s why it’s so important to have life insurance. If something happens to you, life insurance can help your loved ones keep up with the mortgage payments and other expenses. It can also give them the resources they need to pursue their dreams.

So, if you’re not insured, contact us about getting life insurance. It could be the best decision you ever make.

Retirement Insurance

It’s no secret that contractor pensions aren’t as widely available as other professions. As a result, many contractors have to rely on personal pension plans to save for retirement.

This can often be risky, as markets fluctuate, and there’s no guarantee that the money will be there when needed. That’s where annuities come in. Annuities provide a guaranteed stream of income that can be used to cover living expenses in retirement. This means that contractor pensions can be much more secure, providing retirees with the peace of mind that their hard-earned savings will last them for the rest of their lives.

Next Steps

Running a contracting business comes with a lot of risks. So many things could go wrong, from injuries on the job site to property damage. That’s why it’s essential to have the right insurance to protect yourself and your business. At The Annuity Expert, we specialize in insuring contractors. We understand the unique risks of running this type of business, and we’ll make sure you’re adequately covered.

Contact us today for a free quote.

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Shawn Plummer, CRPC

Chartered Retirement Planning Counselor

Shawn Plummer is a Chartered Retirement Planning Counselor, insurance agent, and annuity broker with over 14 years of first-hand experience with annuities and insurance. Since beginning his journey in 2009, he has been pivotal in selling and educating about annuities and insurance products. Still, he has also played an instrumental role in training financial advisors for a prestigious Fortune Global 500 insurance company, Allianz. His insights and expertise have made him a sought-after voice in the industry, leading to features in renowned publications such as Time Magazine, Bloomberg, Entrepreneur, Yahoo! Finance, MSN, SmartAsset, The Simple Dollar, U.S. News and World Report, Women’s Health Magazine, and many more. Shawn’s driving ambition? To simplify retirement planning, he ensures his clients understand their choices and secure the best insurance coverage at unbeatable rates.

The Annuity Expert is an independent online insurance agency servicing consumers across the United States. The goal is to help you take the guesswork out of retirement planning and find the best insurance coverage at the cheapest rates

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