Contractor Insurance

As a contractor, it is important to have a commercial insurance policy that will protect you and your business. Many of our insurer partners offer commercial contractor packages for small to medium sized contractors that provide the various coverage and limits needed for a specific industry.

Here is an example of one of our insurer partners’ contractor package coverage and limits:

• Commercial General Liability of $2,000,000
• Tool Floater $5,000
• Commercial Building, Equipment and Stock $25,000
• Installation Floater $10,000
• Equipment Floater $25,000
• Blanket Crime $5,000
• Extra Expense

Why You Need Liability Insurance

Liability Insurance protects you from law suits that result from property damage or bodily injury due to a negligent act.  Negligence occurs when a duty of care is owed to another party, a breach of such duty occurs, and a causal relationship between the breach and damage exists.  Examples of negligence can range widely from the failure to clear snow from sidewalks or walkways (slip and fall) to the improper maintenance of equipment leading to a crane collapsing (resulting in massive property and bodily injury damage).

The liability insurance limit on the policy is the maximum that the insurance company will pay out on your behalf, and over the years, society has become much more litigious.

The limits for commercial general liability can range from $1,000,000 and higher, with $2,000,000 being common.  When deciding on what limit to purchase, it is important to consider the worst case scenario for your specific situation, including how much damage you think could possibly occur and the cost difference for the higher limits of coverage.  Quite often, the cost is minimal to increase the coverage to a higher limit of $5,000,000 or $10,000,000.

Why You Need Commercial Property Insurance

While commercial general liability insurance provides coverage for law suits against negligent acts, commercial property insurance provides coverage for a business’ buildings, equipment, and/or contents.

Commercial property insurance policies can be issued as a “package” as described above, which is usually less expensive.  The policy is pre-made for what the insurance company thinks a specific type of business will need. Within the packaged policy, the limits on some types of coverage may be insufficient, and the limits can usually be increased for an additional premium. There are also commercial property insurance policies that can be individually tailored to your specific needs.

Contractor Classifications

There are many types of businesses that qualify the a contractor’s package, some of the most common being:

• Siding, door, window cleaning
• Building construction (residential or commercial)
• Cable TV wiring/installation
• Carpentry
• Escavation
• Furnace and heating duct cleaning
• Janitorial services
• Landscaping
• and more

The premium for a contractor package depends on your experience, your estimated annual gross receipts, and which classification you fall under. Premiums start as low as $750/year, with various payment options available.

For more information on commercial liability or commercial property insurance, or if you would like to obtain a quote on a contractor package, please contact our Office and one of our Commercial Brokers would be happy to assist you!

Thank you,

The Costen Insurance Team