For a small business contractor, even a single accident or unexpected claim can cause serious financial strain. Whether you handle plumbing, electrical work, or other specialty repairs, having the right insurance in place safeguards your business from costly setbacks. Muller Insurance is an independent insurance agent that partners with multiple carriers to provide clients with a range of policy options, including business insurance. Here, we’ll explain what contractor insurance is, its benefits, and how our policies can help to protect specialty contractors on the job.
What Is Contractor Insurance, and Why Is It Needed?
Contractor insurance is a combination of business coverages designed to protect professionals in trades like plumbing, electrical work, and carpentry. It acts as a financial defense against unexpected events on the job. From property damage to liability claims, contractor insurance helps ensure that a single accident doesn’t derail your business.
Common risks that contractors face on the job that necessitate proper insurance coverage include:
- Property damage: Accidents during a project can result in damage to a client’s home or business property, creating expensive repair bills.
- Injury claims: A customer or third party could be injured on-site, leading to liability claims and possible legal expenses.
- Theft of tools and equipment: Losing essential tools to theft or damage can delay projects and increase replacement costs.
- Vehicle accidents: Company vehicles used for transporting materials or tools may be involved in collisions, resulting in repair costs and liability concerns.
- Work errors or defects: Mistakes in completed work can lead to claims even after the job is finished, affecting your profits.
Since even a minor incident could lead to costly repairs, legal fees, or lost income, having comprehensive contractor insurance helps provide protection, peace of mind, and financial security.
What Does Contractor Insurance Cover and Not Cover?
Contractor insurance is designed to protect against the most common risks faced on job sites. For a small business contractor, these policies can make the difference between a minor setback and a major financial loss. The policies usually included in a comprehensive contractor insurance policy include:
- General liability insurance: This coverage protects your business from claims involving property damage or bodily injury that occur during a project.
- Commercial auto insurance: This provides financial protection for vehicles used in your contracting work, covering accidents, repairs, and liability expenses.
- Workers’ compensation: This policy offers support by paying for medical treatment and lost wages if an employee is injured while performing job duties.
- Tools and equipment coverage: Contractor insurance ensures that your essential tools are covered in case of theft, loss, or accidental damage, helping you stay on schedule.
- Completed operations coverage: This coverage applies to claims that arise after a job is finished, protecting your business from issues related to completed work.
There are certain exclusions that contractors should be aware of when reviewing their policies. These include normal wear and tear of tools and equipment, high-risk activities without endorsements, and personal property damaged unrelated to the business. Be sure to know what is and isn’t covered in your policy so there are no surprises when you file a claim.
What Are the Benefits of Small Business Contractor Insurance?
Having the right insurance coverage offers more than just peace of mind. Essential coverage also provides small business contractors with other benefits, including:
- Financial security: Insurance helps cover unexpected expenses from accidents, claims, or equipment loss, reducing the risk of out-of-pocket costs.
- Business continuity: Coverage ensures that your operations can continue even after an incident, preventing costly downtime.
- Client confidence: Carrying proper insurance shows clients that you take responsibility seriously, which can help build trust and win more jobs.
- Legal protection: Policies can help with legal fees and settlements if your business faces a liability claim.
If you’re a handyman, plumber, or electrician, having a business insurance policy tailored to your needs will help you reap these benefits and more.
Access Small Business Contractor Insurance Policies at Muller Insurance
Contractor insurance is an essential safeguard for any small business contractor. Muller Insurance can help specialty contractors like plumbers, electricians, and carpenters* find coverage that fits their needs and budget. With access to multiple carriers and bundling opportunities, we make it easier to secure comprehensive protection while saving money. Some of the top national carriers we work with include:
We are licensed in over 20 states, including New York, Connecticut, and Pennsylvania. We also offer bundling opportunities that can help save you money. To learn more about small business contractor insurance and how it can keep you protected on every job, contact us or get a free quote today.
*Please note: We do not insure general contractors.
