3 Types of Insurance Every Contractor Needs
It’s one of those things we don’t often talk about, but we all really need: insurance. Are you making sure that you’ve got all aspects of your business covered if something were to happen? Do you even know all the different types of insurance options? If you don’t, it’s never too late to educate yourself and find out. Here are our suggestions for three types of insurance every contractor needs.
General Liability
General liability insurance is one type of insurance every contractor needs. You just never know when an accident may occur, especially on a job site or a project that you’re managing. It’s wise to make sure you’re covered. A general contractor’s line of work lends itself more readily to the need for general liability insurance. You’re often working on other people’s property and around other people. One slip of your hammer or trip over your extension cord could land you with some insurmountable expenses that could have easily been covered and insured with general liability insurance. Don’t lose your business because you weren’t covered.
If you forego general liability insurance, then you leave yourself and your business vulnerable. You may have to pay legal or medical costs out of pocket. Those costs would likely be impactful to your business. So, don’t risk it. General liability is absolutely one of the types of insurance every contractor needs.
Commercial Auto
Commercial auto insurance is also a huge consideration for general contractors. Do you use your truck for your business at all? Think of some of the everyday work tasks you use your truck to complete. Hauling materials is work. Visiting project sites is work. Driving to survey a new building site is work. Your traditional, personal auto insurance may not cover these tasks.
The best thing would be to go ahead and invest in commercial auto insurance for your work truck or fleet of vehicles. If you have a larger operation with multiple work vehicles, it’s non-negotiable. Commercial automotive insurance will cover your work truck if you have a fender bender while hauling your next load of lumber.
Workers’ Compensation
Another type of insurance you should at least consider is worker’s compensation insurance — especially if you have another employee, but even if you don’t. Workers’ compensation insurance is designed to pay for medical costs and wage loss if an employee is injured on the job. That employee could be you. Worker’s compensation insurance can cover your injuries as well as those of your employees.
It would also be prudent to know your state’s laws regarding workers’ compensation insurance. Most states require you to have it as soon as you hire one employee, so make sure you’re compliant and covered. It’s also simply good practice to have coverage for any employees you have. The building and construction field needs extra insurance and peace of mind.
Make sure your business is protected, and HFS Financial will make sure you know how to offer financing as a contractor. Offering financing to your clients is simple when you partner with HFS Financial. We can make sure your clients have the financing options they need to make all their home improvement dreams come true. With HFS Financial, “You Dream It, We Finance It.”
