Insurance Necessities for Small Contractors

Small companies often have the most challenging time choosing what insurance coverage to carry, as premiums can be a serious expense for the company just starting out or struggling to turn a profit. However, for those in contracting, the importance of having the right insurance can’t be stressed enough. If you think the premiums are expensive, consider facing common liabilities and lawsuits without insurance. The right policy could end up saving your company thousands. There are several insurance necessities that can address the most pressing risks of operating a contracting company.

What To Know About Ohio Construction Insurance Necessities and Coverage Options

No doubt you understand the liabilities that come from physical accidents on the job or losses due to fire or theft. While these liabilities are faced across a number of industries, contractors work in a different environment and require more specific coverage for these risks.

Commercial General Liability

A broad policy offering general liability coverage could include contractual liabilities, personal injury, product liability, property damage, and independent contractor’s liability. The transactions that occur between project owner and contractor, supplier and contractor, or contractor and subcontractor leave gaps that aren’t covered by a basic general liability policy.

Automotive Liability

When researching Ohio construction insurance, remember to include the use of automobiles and trucks as a liability. Personal insurance won’t cover work-related accidents, and owning a fleet of vehicles will require a commercial auto policy. Have a policy that includes hired and non-owned coverage.

Workers’ Compensation

Policies that address personal injuries occurring on the job should be another, including a construction contractor insurance plan. State law requires that employers with one or more employees must carry workers’ compensation coverage through either state-funded or self-insuring options.

Professional Liability

Also known as errors and omissions insurance, this coverage will address mistakes, errors, and omissions that may take place during the project, from paperwork errors to service mistakes. Depending on the carrier, the contractor’s errors and omissions policy will cover damages for claims of actual or alleged faulty workmanship, poor design, or defective materials.

Builder’s Risk

This coverage also goes by the term course of construction insurance and protects projects that are in progress. While under construction, buildings damaged by fire, explosions, lightning, vandalism, theft, or acts of God will be covered with builder’s risk. While a property owner can take out this policy for the project, contractors are wise to include this coverage in their insurance plan.

How To Purchase Ohio Contractor Insurance

Given the numerous risks your contracting company faces, it is best to meet with an insurance specialist for guidance with bundling coverage needs or purchasing policies. The expense of a comprehensive insurance strategy is well worth the investment when considering the alternative of relying on limited company resources to settle claims or reimburse client losses.

About Haughn & Associates 

Founded by Michael Haughn in 1986, Haughn & Associates is a full-service, family-owned, independent insurance agency based out of Dublin, Ohio. H&A strives to provide the best possible price and unique insurance solutions across a myriad of industries, including construction, IT, Habitation & Commercial Property, Agriculture, and Engineering. Devoted to providing the best of business insurance, life and disability insurance, personal insurance, employee benefits, and bonds, H&A is proof that success lies in long-standing client relations and satisfaction. To learn more about how H&A can be of service to you, contact us at (877) 802-2278.