Contractor Insurance Tips: Dos and Don’ts

Insurance is a vital part of ensuring you are protected in the event of an accident. Individuals and companies make it point to insure themselves and their businesses, not only for accidents but also against unscrupulous claims. As a contractor, it is crucial to get insurance but that is not the only part. It is also important to know how much to spend without sinking your business.

You must know the precise amount to pay for insurance every month, no matter what the companies say. Insurance companies may try to convince you to pay more than you can afford, but it will affect the business in the long run. Click here: to learn more about the needs of your construction business.

On the other hand, channeling too little reduces the coverage you get. Nothing is as frustrating as discovering that there isn’t enough to cover an emergency when you need it.

Dos and Don’ts of Getting Contractor Insurance

If you are looking to cover your business as a contractor for the first time, you have a chance to get it right. The following are some tips to follow for the best experience in your construction business:

●      Do Get Adequate Coverage

Buying insurance is not the only factor to consider. You must also decide how much you are willing to spend on it. Remember that you have to pay a certain amount to the company per month, but the amount must be enough to offer adequate coverage. In other words, do not scrimp on the plan. Read this article for ways to choose the right insurance firm for your construction business.

●      Don’t Wait

Putting off the business of getting insured is risky. Accidents happen all the time and there is usually no warning. Therefore, getting early coverage for your business helps you accumulate enough to tide you over when you need it.

●      Cover Your Employees

Get insurance to cover everyone in your employ. By law, every worker should have compensation insurance, even if they are part-time or you have only one person working for you. The policy is needful for times when your employees have injuries or miss work due to illness and need medical care. It does not have to come out of your pocket; they are already insured in that aspect.

●      Don’t Leave Out Any Work

Whatever policy you choose, ensure to include every aspect of the contract. Do not leave anything out if you do not want the risk of invalidating the coverage. Some contractors have an area of specialization while others focus on more than one area. If you are a contractor for general work, but also touch on electrical jobs, include it when discussing with the agent.

●      Don’t Wrongly Classify Employees

If you are tempted to get around the system by wrongly classifying your employees, run from it. Doing so may earn you serious penalties such as jail time. Some employers deliberately misclassify their employees to avoid getting the workers’ compensation policy. But while it may work for some time, it will eventually be discovered and you may lose your business over it.

●      Get Coverage for Equipment

Apart from insuring yourself and your workers, it is also crucial to get coverage for your equipment. This is especially true if you are a contractor with specialized equipment you have to move from one place to another. There is always a risk of transportation damage or loss, and without the right policy, you may have to replace them out of pocket.

Property insurance may not cover such a risk. If you have one, check with your agent to determine how far the coverage goes. Most times, such policies focus on equipment within your place of business. Any tool that leaves the premises is not covered.

●      Choose Essential Coverage

Getting coverage for the essentials is non-negotiable. For example, a California contractor’s general liability insurance protects you against possible damage to property belonging to other people and personal injury. You may also get coverage for damages incurred from advertising. In simple terms, you cannot overlook this type of insurance.


If you are choosing an online policy, ensure you check every aspect before signing a contract. Many such policies may not offer everything you need, and this fact may not be fully disclosed until it is too late. Contractor insurance is pretty vast; it has a lot of areas to cover. Your agent should advise you on the best ones and ensure you get the right coverage for your business.

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