Here are some of the terms that your current policy should include

Public Liability
If you injure a member of the public or an independent sub-contractor during the pursuit of your business or accidentally damage surrounding or third party property, the public liability policy will step in to meet claims for compensation made against you. Furthermore it meets all legal costs in connection with settlement or defense of such claims. Premiums will be based on the type of work undertaken, the size of the firm and its claims record. Many 'employers' will not allow a 'contractor' on site until it has been established that Public Liability cover operates.

General Liability
Generally protects you from most claims that arise from day-to-day operation of your business. This includes "slip, trip, or fall" type accidents on the premises, as well as accidents occurring as a result of
day-to-day business activity.

Products Completed Operations
Products - damage or injury resulting from a product you have sold and/or installed. You may be held liable even if the manufacturer is at fault. This coverage will pay the injured party and then claim against the manufacturer. Completed Operations - damage or injury resulting from the workmanship, repair or service you provided.

Scheduled Equipment
This coverage will protect your larger tools and equipment such as welders, generators, nail guns and other expensive portable equipment.

Small Tools
Hand tools are normally covered on a blanket basis with no list or schedule. No item can exceed $500 in value.

Plant, Machinery, Tools & Equipment All Risks. 
This covers the contractors plant, from heavy equipment to hand tools. Valuable equipment is by definition costly to replace. Why not pay a small percentage of that value and transfer the risks to your insurers? 

Electronic Data Processing (EDP)
This coverage will protect hardware from mechanical breakdown, electrical power surge and all special form causes of loss. The software and information stored in the computer are protected from sabotage and accidental destruction.

Workshops, Yards and Stores 
Buildings and their contents represent valuable assets of the business and should be insured against fire, theft and damage. A comprehensive  range of coverage is available in a similar fashion to that granted in respect of a house. 

C.O.C (Course of Construction)
Physical damage insurance for property under construction. Lenders will require it before issuing construction financing. They will usually require this coverage before funding remodeling projects as well and some policies can be endorsed to include the structure being remodeled also. 

Bonds
A bond is a promise made by a bonding company (the surety) to pay a third party (the obligee) on your behalf. If you (the principle) fail to live up to an obligation or promise that you made. 

Workers' Compensation
Contractors are responsible for providing this coverage for employees but may also have the exposure because of subcontractors who have not provided workers' compensation insurance for their employees. This exposure can be avoided by insisting that subcontractors carry appropriate workers' compensation insurance. For more information about W/C see Useful Information.

Business Auto Insurance
Personal auto policies exclude autos used for Commercial and Business purposes and would therefore require coverage on a policy designed for such use. If you use your automobile in business be sure you have the right policy and coverage is not excluded.

Are you covered?
There are a number of different exposures that we can explore to help you save money and protect your business! Contact us today!

Return to main contractors page