What’s the Worst that Could Happen? The Case for Carefully Considered General Contractor Insurance

Worker fallen from ladder, sprawled on back with tools and hard hat beside them.
Make sure your General Contracting business is covered, even if the worst happens.

As a general contractor, you probably have a knack for balancing the big picture while still paying attention to detail; when it comes time to consider your general contracting insurance policy, it’s a good idea to apply that same organizing eye to your company’s risk management strategy.

Like the spectrum of construction jobs out there, insurance can be seen in terms of scale.

Someone starting out who is trying to keep costs low may opt for a basics-only insurance policy geared towards general contractors. General Liability is a coverage that protects you in the event of injury or damage to a third-party; it’s a requirement from most entities when you enter into a contract, and you’ll want to be sure that your insurance provider can readily assist you if you need to add Additional Insureds to your policy, or provide Certificates of Insurance as proof of your coverage.

If you have employees, you’ll need to be familiar with your state’s laws concerning Workers Compensation, which provides health benefits to your employees for work-related injuries. It can also prevent you from being sued in the event of such injuries, and many states require it–even if you only have one worker, you need to understand your obligations and risks. Familiarize yourself with your state’s laws, and make sure the insurance professional you hire is knowledgeable and experienced.

These policies cover the most important aspects of your general contracting business, but think of your overall risk management plan in the same terms many people think of when it comes to construction. Cost is always a consideration, but relying on a patch job or minimal repair for too long can end up being more expensive in the long run, if the situation ultimately needs more attention.

Beyond basics, here are some additional coverages that are important to make sure your general contracting business leads a long, healthy life…

  • Inland Marine. Your tools are the mainstay of your general contracting business, and insuring them could mean the difference between losing and keeping a job, if they’re damaged or stolen.
  • Commercial Auto. Using vehicles in the course of your general contracting business means opening yourself up to risk, if they’re involved in an accident or stolen. Insuring them is another facet to protecting your business.
  • Property Insurance. This is important if you have a physical location, an office, and equipment kept there. General contracting is more than simply building; it’s organizing contracts, client info, and maintaining records. Protection for your data and off-site equipment can be as important as securing your tools and vehicles.

The worst case scenario answer to the question, “What’s the worst that could happen?” regarding an event with your general contracting business, is that while some occurrences are small, and could be paid off without putting a huge hole in your budget, there is always a good chance that being underinsured could mean being seriously underprepared for a major happening with the potential to put you out of business for good.

Not every business has the same risks, but you don’t want to rely on guesswork when it comes to your livelihood.

Don’t leave your insurance coverage at the level of a “patch job”; contact us today at 1-877-907-5267 to get help crafting a risk management plan to fit your general contracting business, or click here to start the process of getting a quick, free quote within minutes.