What to Look for When Purchasing Insurance for Contractors

All types of Contractors will need to have an Insurance policy that covers more than just the traditional liability exposures. Finding the right coverage, and carrier will be instrumental for any contractor.

Additional Insured, Waiver of Subrogation, Primary Non-Contributory Endorsements

A contractor needs to understand what they are getting into with a client requesting these types of endorsements. In the most basic sense, your client is transferring most of his project liability risk to you when these endorsements are requested. In most cases these endorsements are required to obtain the job, however, your insurance agent should still make you aware of the risk and cost of adding these endorsements.

Where Should I Purchase Coverage?

Find a commercial agent that is familiar with insuring contractors. Typically, they will help identify potential risks, and provide a policy to protect your business.

Key Insurance Coverage for Contractors

Care, Custody & Control Coverage

If your business requires moving client’s items to perform your job, this coverage is needed. This coverage is very important to janitorial risks that could break/damage client’s belongings while cleaning.
Coverage Details

Theft Or Damage of Building Materials Coverage

If you are a construction contractor this coverage could be very important to you. This coverage will provide protection for building materials from theft, damage from loading & unloading, and during transit.
Coverage Details

Tools & Equipment Coverage

This coverage will provide coverage for tools & equipment that are owned, employee owned, or rented from any type of accidental loss. If you rent equipment, do not purchase coverage through the rental company. The cost is always more expensive than through your insurance company.
Coverage Details

Contractor Customer Spotlight

Beavers Carpentry

Originally operating as a handyman service, Beavers Carpentry grew into a successful home remodeling and commercial construction company. Homestead Insurance Group helped Beavers understand the complexity of commercial insurance while making sure it was affordable and easy to use.

Homestead helped me understand what coverage is needed, and increased my coverages as my company grew. They always stay in contact throughout the year to make sure my business is properly covered. The main reason why I value my relationship with Homestead – TRUST.
– Tommy Beavers, Owner / Operator