Looking for the Best Contractors Insurance?
Having the right insurance can help protect your business from the financial impact of covered lawsuits, accidents, and property damage claims.
Whether you're an Electrician, Plumber, Handyman, Landscaper, HVAC contractor or any other type of contractor, we offer tailored coverage designed specifically for your needs. And don’t worry if you're not local – we provide insurance solutions across California and beyond!
Who Needs Contractors Insurance?
Independent contractors in various fields need insurance to protect against potential risks. Here’s a glimpse of who can benefit from insurance coverage:
- Independent construction contractors
- Plumbers, carpenters, electricians and painters
- Electrical system installers
- HVAC technicians
- Flooring experts
- Pool maintenance professionals
- Roofers and siding installers
- Home improvement specialists
- Handymen and Repair people
- Specialty contractors in diverse trades
Basic Insurance For Contractors
Your insurance needs will vary based on your business, so working with an experienced agent helps ensure that you don’t have critical gaps in coverage that could leave you exposed to expensive legal claims. Here is an overview of common insurance coverages contractors may need or want to consider:
General Liability Insurance
This core coverage for contractors includes protection against Bodily Injury and Property Damage. It may help cover certain medical expenses, defense costs, and other covered damages when a third party is injured or their property is damaged in connection with your operations.
Products-Completed Operations Coverage
Coverage for risks associated with products or services your business has delivered or performed, which cause damage or injury after completion or delivery.
Contractual Liability Coverage
Coverage for liability you have assumed under a contract, such as when your contract requires your business to cover certain liability claims.
Personal and Advertising Injury Coverage
Protection against claims for harm caused by slander, libel, invasion of privacy, or unauthorized use of advertising content.
Do Contractors Need Workers Compensation Insurance?
As an independent contractor, you may or may not need to have workers compensation insurance. Workers Compensation regulations are mandated state by state.
If you are a contractor who employs other workers, your state may require you to carry workers’ compensation insurance, for example in California.
Workers’ compensation requirements depend on your state, business structure, and whether the people working for you are legally considered employees or independent contractors. California contractors should confirm their specific requirements under California law. However, in some states you need to purchase workers comp even if you don’t employ others.
This policy protects workers from job-related illness, injury or death. It will also reimburse workers for lost wages if they cannot go back to work. The benefit to you, as the employer, is that this coverage can help to prevent losses from employee lawsuits.
Should You Consider Errors and Omissions Insurance?
Professional Liability Insurance, or Errors and Omissions (E&O) is a liability policy that provides coverage for certain claims alleging professional errors, negligence, or failure to perform professional services that result in financial loss to a client.
You may want or need this coverage under the following circumstances:
- You provide professional advice in your line of work - this can include everything from recommending a particular type of plumbing or wiring to providing interior design services.
- You hire employees or subcontractors who provide any sort of advice or consulting services
- A client, contract, licensing requirement, or applicable regulation may require E&O coverage for certain professional services.
If subcontractors provide professional services, consider whether they should carry their own E&O coverage and review their insurance requirements before hiring them.
Save Money with Business Owners policy (BOP)
If you’re a small contractor, you may be eligible to bundle General Liability, property, and other coverages into a Business Owners Policy, also called BOP, depending on your business and the insurer’s eligibility requirements.
The advantage is that a BOP may be more cost-effective than purchasing certain coverages separately, depending on your business and policy options. Additionally, it involves less paperwork with one policy instead of multiple individual policies.
Some of the additional coverages that can typically be bundled with a BOP include:
Commercial Property Insurance
Helps protect covered business property, such as buildings, equipment, inventory, and contents, against covered losses.
Business Income Insurance
It may help replace lost income and cover certain continuing operating expenses after a covered loss, subject to the policy’s limits and period of restoration.
Commercial Auto Insurance
Insures commercial vehicles - provides coverage for vehicles used in your business, subject to the policy’s terms, limits, and exclusions.
