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If you pay contractors, you should consider this...

6 Insurance Coverages for Contractors

Licensing requirements and insurance coverages can be overwhelming for new or experienced contractors. On top of that, every state has different business insurance regulations. But, no matter where you’re at, these are six contractor insurance coverages you should consider.

1. General Liability Insurance for Contractors 

Contractor liability insurance is the mainstay of every contractor's policy. It is the insurance safety net and minimum requirement before signing a contract for any job.

General Liability Insurance: Provides coverage for bodily injuries and property damage resulting from your products, services or operations.

Most states and jobs require a minimum of $1 million of coverage. This is because you are not just covering your project, you are covering the potential damages to the building you are working on. So, even if you are only installing $1,000 worth of tile, you need to understand that the tile may cause potential damage far beyond the value of that tile. 

2. Per Project Aggregate Coverage

Per Project Aggregate is essential, especially if you are an owner-only business.

Per Project Aggregate Coverage: Applies to your general liability limit to cover your individual projects.

For example, let’s say you’re helping on a big project. Unfortunately, your work ends up causing damage to the project and you are legally liable. Later in the policy term, you’re working on another project and your work causes damages again and you are legally liable. Since, these happen in the same policy term you may not have coverage for your second claim. To avoid this, consider the per project aggregate which covers your liability per individual project. 

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