Casual or artisan contractors include such professionals as plumbers, electricians, roofers, carpenters and the like. These are men and women who work in the skilled trades as experts in a particular area. These people have specialized insurance requirements and need coverage that is different than most 1099 employees.
This coverage involves tools and gear that are heavily used and moved about and are not addressed by normal policies. In general, artisan contractors insurance comes in the form of a Business Owner’s Policy, or BOP. Most businesses with whom you contract will not offer coverage for you, so it is important to have your own.
Usually, the BOP will have a clause called a “floater” which covers any property you own as an independent business operator. This will protect your machinery and that equipment you need to carry between various jobs. The floater will cover tools as well as heavy machinery.
Accidents happen on the job site and it is important to make sure that, should you become injured in the course of work, you are covered with workers compensation insurance. The last thing you want is to find out after a major mishap is that your medical care is not covered. If you have your own employees that will be working on a job, you will need to make sure your employees are covered against injury and accident as well.
General Liability Insurance
General liability insurance is vitally important for artisans. Should a business owner or property owner accuse you of negligence or wrongdoing, having this coverage may be your only line of defense. Lawsuits are extremely expensive, and going into one without the right insurance can result in the loss of a business due to attorney and court fees.
Commercial liability is broad and carries many exclusions, which must be written into the policy. An umbrella policy may be a good idea to cover damages in excess of one million dollars.
Business Auto Insurance
If you use commercial vehicles or even have a fleet of autos that you use strictly for business use, you will need to have automobile insurance for your fleet as well. Relying upon personal coverage is a bad idea, as personal policies will often not cover damages sustained if the vehicle is primarily used for business.
Risk management is a vital part of any business. The right insurance is an important line of defense against mishaps and problems on the job. Since artisans are specialized workers, having coverage to protect you and your staff against the various dangers of the job, from accidents to lawsuits, is vital to your safe and secured operation.
Different states have different laws about the kinds of insurance that are needed to operate. You should always do your homework and be sure that you are covered in any situation. Do you have any thoughts about artisan contractor’s insurance, or advice for others? We would love to hear your thoughts. Please leave us a comment below and let us hear what you have to say.