You know you need insurance as a contractor, but what type do you really need? Here are a few different types of contractor insurance you probably need for your business.
General liability insurance is the most basic type of insurance that contractors should have. It can cover both damages to you and your employees, as well as any damage to property that might happen on the job. General liability insurance also covers you if someone makes a claim against you. Without insurance this can bankrupt a small company. With general liability insurance you can be assured that your business is safe and your employees are covered.
Chances are, you use a truck or van to get from job to job. The vehicle you use while working should be insured with commercial vehicle insurance. It’s important to have commercial auto insurance, even if you’re just using your personal vehicle for work. An auto accident that happens while you’re working won’t be covered by your personal auto insurance. This could leave you liable for any damage and medical bills. Contractors should have commercial auto insurance for any vehicle they use for work.
Tools and Equipment
You can get insurance to cover the tools and equipment you use for your business. If you use expensive equipment, you should probably insure it. This isn’t required by law, but it’s generally a good idea. If you would be financially devastated or significantly set back if someone stole the item—insure it.
So what type of contractor insurance do I need?
The easiest way to figure out what type of insurance you need as a contractor is to find an insurance company in your area. They will help you go through your business and your goals and find the right coverage. Make sure your insurance agent isn’t giving you a one-size-fits-all plan as there may be nuances with your company. Contact us if you’re in Nevada and we can help you find the right type of contractor insurance for your business.