As a general contractor, you’ve probably come to expect the unexpected. Putting out fires as they arise just comes with the territory. It is that exact unpredictability that makes insurance such an important detail for general contractors to consider. Of course, every contractor business is different. Varying needs require different types of insurance. Here’s everything you need to know about insurance for general contractors.
Insurance that General Contractors Need
Structural Damage Policy
While you’d love for every job to go smoothly, the reality is that accidents happen in construction. A structural damage policy covers you for damage that occurs to the homeowner’s property while you’re doing the job.
Errors and Omissions Coverage
The risk isn’t necessarily over once you finish the job and leave the job site. Sometimes, issues come up after completing the work. Coverage for errors and omissions covers any bits of the job accidentally missed or done incorrectly. If these errors or omissions cause damage to the property once the work is complete, this type of coverage comes into play. That said, if you intentionally take a shortcut that leads to an issue, you are not covered.
Worker’s Compensation Insurance
No one wants to see injuries on the job. The truth is, though, that there is a risk on any worksite. You need worker’s compensation coverage in most states to deal with workplace injuries. Even if you’re not obligated to carry this type of coverage where you live, it’s still a smart idea to have it. It protects both your employees and your business in the case of accidents.
Equipment Coverage
General contractors have a lot of tools and other equipment. This equipment is expensive and used regularly. It’s also moved from job site to job site. Having an insurance policy on your equipment is often a smart move.
This type of policy typically covers you if your equipment is stolen, vandalized, damaged in transport, or ruined in a fire/flood. It’s important to note that this kind of policy may not cover equipment that you’ve rented for the job. You might need a separate policy to cover rented pieces.
Business Owner’s Policy
A business owner’s policy is for the general contractor that operates a warehouse or office space. This kind of insurance protects the holder in the case of something happening to the business’s building (such as a fire). It also usually covers the interruption of work. If you decide to sign up for a business owner’s policy, be clear about what hazards are and are not covered.
Added Considerations
Don’t sign anything until you find out about the specific inclusions and exclusions of any policy you’re considering. Also, some plans don’t cover subcontractors. If you have subcontractors working with you, be sure the right insurance is in place for them, too.
Contractor Financing to Make Your Business Feel More Secure
Having the proper insurance in place is important to customers. It makes them feel secure and protected. Another big draw for customers is home improvement financing. Clients sometimes need help paying for the home improvement projects they have in mind.
HFS Financial connects homeowners with the best construction funding. Even better, when you offer contractor financing, you’re kept in the loop throughout the process, but you don’t have to get involved in the paperwork. Once you place our handy widget on your website, we take care of the rest. That way, you can worry less about project financing and concentrate on ensuring your contractor business is insured.
Are you ready to add financing to everything that you offer your clients? Get in touch with us today to find out more or apply online in just minutes. With HFS Financial, “You Build It, We Finance It.”