The insurance world, if you do not live in it all the time, can be a bit like being stuck in a tidal wave. It moves quickly. You spin around a lot. You get dizzy. And, if you do not know how to swim, you are going to end up in a lot of trouble (nobody enjoys figuratively drowning). You do not deserve that and we feel as though, with some insurance companies, there is a bit of a double standard. They expect you to know information that you probably have not had time to examine. You are a contractor after all, you work long hours and insurance is probably the last thing on your mind.
Asking you to know everything about insurance would be a bit like asking us to go onto your worksite and erect a building with no prior training. We would probably get hurt, the structure may or may not set on fire and that would be that (we could probably build a dog house though). So, we do not expect you to come into our office and know the ins-and-outs of your insurance needs (that is what we are here for). But, just like you would expect us to have some basic skills before we meet with you, there are some basic terms you will need to understand to make sure we can make the most out of your time. These are the three policies you need.
General Liability Insurance
If you are a contractor then it is almost guaranteed that you will need general liability insurance. In most states liability insurance is required by law so you are going to want to make sure you have this policy in your insurance arsenal. Liability insurance covers you from damages and injuries that may occur on your property and will cover any legal fees that are associated with those damages.
Workers compensation may be the most popular insurance policy we sell. Also required by law, workers compensation will protect you and your employees in the event that someone gets injured. Workers comp will cover your employees’ medical bills and, if they cannot come back to work, this policy will pay up to two-thirds of your employees’ salary until they can return to work. If they cannot return to work workers comp will, under most policies, last until the injured individual reaches retirement.
Contractors Bonds Insurance
Contractors’ bonds insurance may be required by law (or the company) depending on the size of the project you are working on as well as the company you are working for. There are a few different kinds of bonds that you may need (which we can talk about at a later date) but most of them are designed to serve as an additional form of liability protection when disaster strikes.
We hope these three terms give you a better idea of the insurance policies you may need but if you have any further questions please feel free to give us a call at 1-800-649-9094. We look forward to hearing from you!