Contractors General Liability Insurance
Artisan contractors and handyman services both come with their own set of unique risks. Because you’re a business, you require business insurance, but you’ll require policies designed for meeting your artisan contractor business’s particular and specific needs.
The Insurance Center of North Jersey understands your unique situation and offers contractors liability insurance to protect you from the many of the distinct coverage challenges you face. We are committed to helping you get a cost-effective insurance plan that offers liability protection for your business; whether you’re a general contractor or an independent contractor, we can help you.
Who Is an Artisan Contractor?
The artisan contractor category, also referred to as casual contractors, includes various occupations that deal with skilled work at the customer’s premises with tools. Some artisan contractors include:
- Plumbers
- Electricians
- Carpenters
- Landscapers
- Painters
- Masons
- HVAC
- Janitorial
- Handyman
Artisan contractors have excellent general contracting knowledge, but they also have a more specialized take on their industry. In larger construction projects, these professionals are called upon by general contractors.
Artisans usually focus on one or two parts of a specific project and hone in on things such as carpentry or electrical work. Artisan contractors are technically referred to as subcontractors. They are specifically skilled to handle one part of a project, allowing the general contractors to tackle the bigger picture of the deal.
This group’s special insurance requirements include coverage for tools and equipment that are frequently moved around as well as the value of work performed for customers until it’s completed.
What Is Contractors General Liability Insurance?
This type of insurance protects you, your business, and your team members from unexpected financial loss. If there’s an unfortunate situation where you’re held responsible for damages occurring to a third party, like a building property or an individual, you’d be required to pay the entire cost of the damages and injuries. With business employee property damage coverage, the costs of damages will be covered, including any possible legal defenses.
What Does Contractors General Liability Insurance Cover?
This insurance for contractors offers coverage that protects your contractors business from claims that could occur from normal business operations, like:
- Physical injury
- Property damage
- Personal and advertising injury
- Defense costs
When you have this type of coverage, it benefits you in various circumstances, such as:
Bodily Injury
If one of your clients happens to trip over your toolbox and fracture their leg, you could face being liable for their medical costs. But, when you have this type of contractors insurance, those costs could be covered, protecting your business.
Property Damage
Here’s another example: You’re renovating a client’s home office, and they have a nearby desktop. In the demolition stage, you drop something accidentally on their desktop, and it causes irreparable damage. Contractors general liability insurance would cover this liability claim up to the limit on your policy.
Personal Injury
An example of personal injury would be, you have an employee who goes to lunch. While on lunch break, one of your clients overhears them talking to another employee in a false and unflattering way. The client decides to sue for slander. When you have a general liability insurance policy, it could help to:
- Cover this claim
- Up your policy limits
- Appoint a lawyer to defend you if needed
Why Contractors Need Contractor Insurance
Being a contractor, clients expect you to:
- Meet their deadlines
- Put their construction plans into action
- Ensure small and large projects are finished
All these tasks could put your business at unique risks. Your business would also likely be exposed to the more common workplace risks, including damage to your important records and property.
And, like any other owner of a small business, artisan contractors could be sued for damages and held liable. So, it’s essential you have this type of compensation insurance because:
- It protects your business and you: As an artisan contractor, you have the same liability exposures and legal obligations as bigger firms. You can be sued for causing bodily harm, damaging client property, or advertising injury. Contractors general liability insurance will help cover these damages that resulted in a lawsuit and the legal fees.
- Your clients will expect you to have this insurance: They might require it of you actually before they even sign a contract with you. This is because they could be held responsible for accidents or alleged wrongdoings caused by you or your work without this insurance.
- The law might require it: State regulations often require contractors in specific industries, like construction, to carry this coverage. Frequently, it’s best for you and your clients to have separate policies.
How Much Does Contractors General Liability Insurance Cost?
The cost will be based on your specific business requirements. Your business is unique; therefore, the risks are too. Factors that can influence the cost include:
- Your location
- The type of work you perform
- Number of employees
- Payroll & Gross Receipts
How Do Artisan Contractors Obtain General Liability Coverage?
There are a couple of ways contractors can obtain general liability coverage:
- You can obtain your own policy: You can buy your own policy through an insurance provider. To show your clients you’re covered, you’ll want to ask your provider for a certificate of insurance. This option is typically the most cost-effective for clients.
- A general contractor could put you on their policy as an “additional insured.” With this option, you’d be covered by their insurance for the length of the project or longer. Businesses can add multiple contractors to their policy. However, it’s usually more costly to do this as they will take the cost of the coverage out of the monies they pay you.
Either option provides protection if you or your client is faced with a third-party lawsuit over property damage or bodily injury.