Maryland Contractors Insurance
You have a lot of money invested in your business and it's important to protect that investment. For example, if you are an independent contractor, all it takes is one incident (in which someone gets hurt) and it could spell disaster. These things cannot usually be avoided, but you can take out a Contractor Insurance policy to protect your future, and here is an example:
Jim runs a roofing company in Maryland and business has been good lately. He has a crew of men working for him and they have several jobs lined up. During the first job, one of Jim's workers accidentally dropped a hammer off the roof. Unfortunately, it hit the homeowner, and he had to be taken to the hospital for treatment. Because the worker was one of Jim's employees, he was responsible for medical care and the homeowner could sue Jim if he was unable to work for a long period of time. Yet, because Jim had the foresight to take out an insurance policy for his business, everything was taken care of. If Jim had not been insured, he and his men could be looking for work today.
What Is Contractors Insurance?
A typical contractor policy covers general liability. This protects the business owner from lawsuits and legal claims from clients and employees. It could be a claim for an injury or damages resulting from a business that is in the process of construction. Without general liability, a business is leaving itself open to lawsuits and large settlements can bankrupt a business, unless they are properly insured.
A standard policy also protects a business from claims of negligence that results in damage or injury. For example, if something was not properly constructed and this was the cause of an injury, the contractor could be held liable.
Who Needs Contractor Insurance?
If you own a business that does construction you need specialized insurance. This covers roofers, plumbers, carpenters, handymen, landscapers, and many other businesses.
What Options Are Available?
When you insure your business you can elect to take out several other coverage types. Your options will depend on the size and type of business that you run.
Additional Liability Coverage
You have the option of taking out more insurance than required by law if you want additional protection. This is especially important if your job includes special hazards (like working far above the ground or near power lines).
Suppose you agree to a job but for some reason you cannot complete it. A surety bond relieves you from legal obligation. There are four kinds of bonds that will protect your business.
- Bid bonds - If you are awarded a contract for a project, this bond provides assurance to your client that you or someone will complete it.
- Payment bonds - Suppliers, vendors, and subcontractors, get their payment from your project, should you be unable to pay.
- Performance bonds - Lets the client know that you will fulfill your performance contractual obligations.
- Ancillary bonds - Covers contractual agreements that are not performance related.
What would you do if one of your employees were injured on the job? This person may not be able to work for some time, and your Workers Comp policy will take care of medical bills and provide the worker with a percentage of his or her wages while off work.
Commercial Auto Insurance
It's essential to insure your vehicles against damage and accident liability issues. A Commercial Vehicle Insurance addition to your policy will cover property damage, injury, medical claims, court costs, and may also cover lawyer fees.
There is a difference between contractor and construction insurance. Commonly called builders risk, construction insurance covers damage to buildings that are under construction. For example, suppose a major storm or tornado hit a building while it was part way finished. Who would pay for damages? If not for builder's risk insurance, the contractor could be liable and have to assume all of the losses from damage.
There are several important things to remember about Contractors Insurance, and it's best to have your insurance agent put together a package that can take care of all your needs. For instance, you can enjoy the benefits of general liability insurance and also make sure that your vehicles are covered. If you take out surety bonds, this can mean more business for you, because clients are far more likely to do business with bonded and insured contractors. Working with a bonded contractor guarantees clients that they will get what they pay for.
American Insurance and Financial Services, Inc is not a cold and impersonal insurance company. We are a full-service independent insurance agency, made up of people just like you. We can get you the best policy and best rates, because we use many different companies. We offer professional and personal service that you deserve.
We will put together the kinds of Contractor Insurance coverage that you can afford to protect your business and future. Contact us today about an insurance quote for your business. Call 410-877-0017 or just fill out the quote form for a no risk insurance quote.