What is contractors insurance?
Working as a contractor in any trade comes with certain risks. From stolen equipment to auto accidents, there’s plenty that contractors need to protect against. Contractors insurance can help Vermont contractors protect themselves against a broad range of covered risks.
Contractors insurance policies provide tailored protections for those working in construction and the skilled trades. Policies may protect against both property and liability risks.
Which Vermont contractors need contractor liability insurance?
It’s broadly recommended that most Vermont construction and trade professionals have contractor liability insurance. Not getting coverage could be financially devastating if something major happens. Of course, it’s also important to consider property coverages for any significant assets that are owned.
The following are just a few examples of different construction and trade professionals who might get this type of policy:
- General contractors
- Commercial developers
- Residential developers
- Homebuilders
- Marine construction crews
- Carpenters, roofers, and framers
- HVAC techs, electricians, and plumbers
- Commercial landscapers
What contractor liability insurance protections should contractors look for?
There are at least three oft-used contractor liability insurance protections that may be important to have:
- General Liability Insurance: Might insure against common accidents that result in injuries to others, or damage to others’ property. Coverage may apply at worksites and/or the contractor’s facility.
- Commercial Auto Insurance: Might insure against auto accidents when the contractor or an employee is driving to/from worksites. Coverage may also extend to non-accident damage that company vans or trucks sustain.
- Commercial Umbrella Insurance: Might give additional insurance against expensive lawsuits that exceed the limits of another liability coverage.
Many other contractor liability insurance protections may also be available. An insurance agent who specializes in contractor policies can help construction and trade professionals determine which liability coverages they should carry.
What property coverages should contractors look for?
Which property coverages a construction or trade professional should have is determined largely by what their business owns. There are several different types of property coverages, which may protect different assets or in different situations. Some important ones to consider are:
- Commercial Building Insurance: Normally for a contractor’s garage, storage facility, office, or other owned building. Many potential causes of damage, such as fire, severe weather, and vandalism, may be covered.
- Commercial Contents Insurance: Normally for a contractor’s equipment, tools, and materials when these are at the contractor’s location. Protection usually also extends to computers, furniture, and many other items.
- Builders Risk Insurance: Normally for protecting a contractor’s equipment, tools, and materials when these are at a job site. Protection sometimes also covers work that’s in progress or already completed.
- Inland Marine Insurance: Normally for protecting a contractor’s equipment, tools, and materials when they’re being moved between a facility and job sites.
- Equipment Breakdown Insurance: Normally for essential equipment that unexpectedly breaks down. Emergency repair services are often included with the coverage.
What kinds of projects can contractors policies cover?
Contractors policies are able to cover most projects that a construction or trade professional would take on. Policies for new construction, renovation, and skilled trades are all readily available.
An agent who specializes in contractors policies can make sure that a chosen policy does cover a contractor’s particular projects.
Are construction bonds part of contractors policies?
Construction bonds are distinct from insurance policies. Contactors might get both from the same insurance company or through the same insurance agent, but these are technically two distinct products.
How much do contractors policies cost?
The cost of a contractor’s policy can vary quite a bit. A contractor’s location, business size, projects, and past claims history are just a few of the details that can impact premiums.
To find out how much their policy could be, contractors can compare policy options with an independent insurance agent. An independent insurance agent can check quotes from several different companies.
Where can contractors in Vermont get contractors insurance?
If you’re a contractor or skilled trade professional working in Vermont, we at Burlington Insurance can help you find good contractors insurance. We’ll work hard to make sure you find the right policy for your business, so you can work without worrying about whether you’re properly protected. We can make sure you are.
