Starting a home service business involves more than buying tools and finding customers. Every visit to a client’s property creates potential exposure to injuries, property damage, vehicle accidents, stolen equipment, employee claims, and problems that appear after the work is completed. The right contractor insurance package should be active before you enter a customer’s home,…
Contractor insurance can protect a business from customer injuries, property damage, vehicle accidents, stolen equipment, employee claims, and lawsuits. However, simply purchasing a policy does not guarantee that every important risk is covered. Many insurance problems begin long before a claim occurs. A contractor may choose a policy based only on price, describe the business…
To get an accurate contractor insurance quote, you will usually need information about your business, services, revenue, payroll, subcontractors, vehicles, tools, previous insurance, and claims history. The insurance company uses these details to estimate how likely your business is to experience a claim and how expensive that claim could be. Preparing the information before contacting…
A contractor insurance deductible is the amount a contracting business must pay toward a covered claim before the insurance company pays its share. For example, suppose a contractor has tools and equipment insurance with a $1,000 deductible. If covered tools worth $8,000 are stolen, the contractor would generally pay the first $1,000 and the insurer…
A small contractor should choose insurance limits based on the largest realistic loss the business could cause—not simply the cheapest policy available. For many small contracting businesses in the United States, a practical starting point is $1 million per occurrence and $2 million aggregate for general liability insurance. However, that combination is not automatically sufficient…
A contractor without employees may not be required to carry every type of business insurance, but working alone does not eliminate the need for coverage. A solo contractor can still damage a customer’s property, cause an injury, lose expensive tools, experience a business-related vehicle accident, or face a lawsuit over completed work. Without the appropriate…
Contractor insurance can cover certain claims that arise after a project has been finished. This protection is commonly known as products-completed operations coverage, and it is often included within a contractor’s commercial general liability policy. Completed operations coverage may help when finished work later causes third-party bodily injury or property damage. For example, it could…
General liability insurance may cover some damage caused by faulty workmanship, but it usually does not pay for the cost of correcting the contractor’s defective work itself. The key distinction is between: For example, if a plumber installs a connection incorrectly, general liability insurance may not pay to remove and reinstall the defective connection. However,…
Contractor insurance can cover accidental damage to a customer’s home, but the answer depends on what was damaged, how the damage occurred, when it happened, and which policy the contractor carries. General liability insurance may cover damage to a homeowner’s property when the contractor is legally responsible for an accidental incident. For example, coverage may…
Contractor general liability insurance provides important protection against third-party bodily injury, property damage, personal and advertising injury, and certain claims involving completed work. However, it does not cover every accident, financial loss, or business problem a contractor may experience. General liability insurance usually does not cover employee injuries, commercial vehicle accidents, stolen tools, damage to…
