Whether it’s lost property or a fallen worker, contractors know all too well that accidents are unfortunately part of the job. But, that doesn’t mean that a slip and fall has to bankrupt your business. You can easily minimize the financial impact of accidents with comprehensive insurance coverage.
The Crucial Components of Comprehensive Insurance
Comprehensive insurance is made up of many different parts. It may include coverages like Workers Compensation, Inland Marine Insurance or even an Umbrella Policy. These policies work together to offer blanket protection.
1) Workers Compensation
Workers compensation insurance covers injuries, diseases and the medical treatment for those ailments. It also provides up to two-thirds of an employee’s lost wages and some reimbursement for rehabilitation.
2) General Liability
General Liability Insurance offers you protection against third-party claims of property damage, injury or bodily harm, loss of life and negligence. Commercial liability insurance offers extend to direct or indirect actions of your company, your employees, products or structures, which result in loss or damage.
3) Commercial Auto and Truck Insurance
Commercial Auto Insurance and Truck Insurance policies are available to anyone who uses their vehicle for work functions, including subcontractors and sole proprietors. This type of policy is required for contractors who own vehicles used exclusively for work or whose vehicles are registered to their business or association.
4) Inland Marine Insurance
In addition to Commercial Auto and Truck Insurance, Inland Marine Insurance covers vehicles in transport. Inland Marine Insurance fills insurance gaps for any contractor who regularly moves expensive materials, equipment or supplies from one job to another. It also protects goods and materials you have shipped via third parties, like FedEx or UPS.
5) Disability Insurance
Disability Insurance will replace some of your income if you become disabled or are no longer able to work. Employers usually offer group plans that replace as much as 60 percent of lost salary in the event of a disability. Common supplemental plans and individual disability insurance policies may cover as much as 70 to 80 percent of income.
6) Umbrella Policy
Commercial Umbrella Policies provide additional limits of coverage in the event of a catastrophic claim, which exceeds the limits of a traditional policy.
For example, most Business Auto Policies offer a maximum of $1 million of liability coverage. A multi-car accident, with injuries, could easily accumulate damages in excess of $1 million. Without a Commercial Umbrella Policy, you could stand to lose a lot of money.