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Contractors & Trades
We understand that as a business owner, you’ve invested lots of time and hard work in making your business successful. We also understand the risk involved in the day-to-day operations of your business. This is why our commercial insurance specialists work with you to create customized solutions for all aspects of your business, to ensure that you are protected in the event of unforeseen circumstances.
Who needs Contractors & Trades Insurance?
A few types of businesses that may need this insurance coverage:
- Cleaning Service
- General Contractor
- HVAC Contractor
- Sign Installation
Insurance solutions for businesses in the Contractor & Trades Industry, generally include the following:
- General Liability Insurance – Nearly all construction contracts require businesses participating in a job to carry general liability insurance. The primary purpose of this insurance is to protect the insured party if a job site accident causes property damage, bodily injury or personal injury to a third party. In the event of a claim, general liability insurance covers the insured party’s legal obligation to pay compensatory damages to third parties.
- Builder’s Risk Insurance – The majority of construction contracts also require parties to purchase and maintain property insurance that protects their work in progress and certain materials for the duration of the project. This type of property insurance is referred to as builders risk insurance. Under a typical builder’s risk policy, the insurer agrees to pay for direct physical loss or damage to the covered property during the course of construction, unless the loss is subject to an exclusion. Covered property usually includes the building or structure under construction, as well as machinery, equipment, materials and supplies that will become a part of the improvement.Builders risk policies generally stay in effect while a project or structure is being built and expire when construction is completed or when the project is first used or occupied. In contrast to CGL insurance, builders risk insurance offers first-party coverage. First-party coverage protects the insured against damage to its own property, not for the claims of a third party.
- Wrap-up Liability Insurance – As an alternative to having each party obtain separate liability policies, project owners and general contractors can turn to a wrap-up insurance program to manage risks.
Sometimes referred to as controlled insurance programs, wrap-up insurance programs are centralized insurance and loss control programs intended to protect the project owner, general contractor and subcontractors under a single insurance policy or set of policies for the construction project.
- Professional Liability Insurance – Professional liability insurance protects policyholders against claims that arise from an error, act or omission in their performance of a professional service. This form of insurance, commonly referred to as errors and omissions (E&O) insurance, is highly specialized and tailored to the policyholder’s profession.
- Business Interruption – provides coverage for loss of income if your business suffers after a disaster.
- Pollution Liability Insurance – Many businesses in the construction industry wrongly assume that unless they are engaging in environmental remediation work, they have no pollution liability exposures. Virtually every Commercial General Liability policy contains a pollution liability exclusion, which is almost an absolute pollution exclusion. Therefore, it is imperative that a business understands the scope of pollution liability coverage under its Commercial General Liability policy, the availability of limited pollution liability endorsements and the existence of broad form pollution liability policies, if needed.
- Commercial Crime Coverage – Commercial crime policies are designed to insure against certain types of losses that are not covered by a standard commercial property policy, such as employee dishonesty, theft and forgery.
- Equipment Breakdown Insurance – In the construction industry, businesses also face the risk of equipment breaking down or becoming damaged during the course of construction. Equipment breakdown insurance, traditionally called boiler and machinery insurance, covers loss resulting from the accidental breakdown of almost any type of equipment.
- Contractors Equipment Insurance – sometimes referred to as equipment floater insurance, is a form of inland marine insurance that provides protection for equipment and tools that are easily transported from one location to the next. Such policies provide coverage for the direct physical damage and loss to mobile machinery and equipment that is used to complete projects.
Given the complex and specialized nature of businesses within the construction and trades industry, it is important that you speak with your insurance broker to make sure that you have the proper insurance coverages in place. Doing so will help protect your bottom line and provide peace of mind.