Contractors Liability Insurance
Independent contractors make up roughly a third of the U.S. economy, and with most of these workers operating in high-risk industries, accidents are bound to happen. Contractors are defined as independent workers that provide a specific type of service. This can range from construction general contractors, electricians, plumbers, A/C and heating repair contractors, residential and commercial cleaners, roofers, painters, carpenters, and a variety of other service types.
What does it cover?
Contractors liability insurance covers business owners for damages resulting from incidents that occur while the contractor is performing the work and after services have been completed. Similar to a general liability insurance policy, contractors liability insurance provides many of the same coverages, and its ultimate purpose is to protect the insured against potential lawsuits.
The products-completed operations coverage portion of a contractors liability policy is among the most important, as most claims against contractors are made after the service has already been rendered. For example: Assume that a flooring contractor has finished installing tile floors in a residential home, but out of negligence, he forgets to use the proper grout to keep the tiles from moving out of place. A resident of the home walks in and slips on the improperly installed tile and incurs significant injuries. In this instance, a contractors liability insurance policy would cover the bodily injury damages, as the incident occurred as a result of the contractor's completed operations.
Additionally, it is important to note that contractors liability insurance does not extend coverage to the contractor's employees. Workers compensation insurance addresses this type of risk, as it provides coverage for bodily injury sustained by an insured's employees. Given the likelihood of job site accidents for contractors, workers compensation insurance is an absolute necessity and should be considered by any type of contractor.
There are a multitude of incidents that can occur as a result of the services performed by contractors, but with the proper insurance in place, these independent workers can carry out their daily operations with peace of mind. We provide solutions for contractors in Texas and California and will work with you to ensure that the policy you purchase takes all of the potential risks of your services into consideration and provides the right coverage to protect your business.
Contact Us today for more information about obtaining contractors liability insurance.