Business and Personal Insurance Experts
Call 877-357-3963
August 10, 2023
Greetings once again from your friends here at TriState Business Insurance. If new to us, we proudly serve the business and personal insurance needs for those operating and/or residing within Virginia, Maryland, Delaware, and the District of Columbia. And we've been doing this successfully since 1996.
In our previous business insurance blog post, we promised to return and share the various types of insurance coverage that you and your business (as well for those sub-contractors and others whom you contract with to serve you) should be protected by. As previously stated, you gain credibility with those that you serve by proudly promoting the extent of your liability protection. Equally important, those that you trust to serve your best interest should be able to demonstrate similar protections.
So here are the basics coverages that you and your business should consider. These are also the types of coverages that you should demand of those supporting you:
General Liability Insurance - This type of insurance covers property damage and bodily injury that may occur due to the contractor's work. For example, if a contractor accidentally damages your home while working, general liability insurance would cover the cost of repairs.
Workers' Compensation Insurance - If a contractor is injured while working on your property, workers' compensation insurance would cover their medical bills and lost wages. This type of insurance is required in most states, so confirm that your contractor has it before hiring them.
Professional Liability Insurance - Also known as errors and omissions insurance, this type of coverage protects contractors from being held liable for mistakes made during their work. For example, if a contractor incorrectly installs your new roof and leaks, professional liability insurance would cover the cost of repairs.
Business Owner's Policy - A business owner's policy (BOP) is a type of insurance that bundles together various types of coverage, including general liability, property damage, and business interruption. This can be a good option for contractors who want comprehensive protection.
Business Auto Insurance - If a contractor uses a vehicle for business purposes, they must have business auto insurance. This type of insurance covers damage caused by the vehicle and any injuries that occur as a result of a car accident.
Bonding - This is not insurance but another type of protection that contractors can have. A bond is a financial guarantee that a contractor will complete their work as agreed. If the contractor does not complete the job or causes damage, the customer can make a claim against the bond to recoup their losses.
Not all contractors will have all these types of insurance. Some are willing to take bigger risks than others. Some do not realize the true value that comes with professionally crafted and tailored business insurance plans.
Bottom line: As it pertains to those who serve you, do not compromise nor trust any support provider who can't demonstrate general liability insurance coverage.
Up Next: We'll discuss the specific risks associated with hiring a non-insured or under-insured contractor.
We're ready to help. Contact our seasoned team of insurance professionals here at TriState Business Insurance. Oh, and we proudly serve Spanish-speaking business owners as well!
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