Contractor Insurance for Business Owners

What type of insurance does a contractor need?  

Depending on the type of work you do, you may need general liability, property, workers’ compensation and business auto coverage. Rural Mutual also provides additional endorsements for contractors based on their needs, including Builders Risk Insurance 

From carpenters to general contractors, these industries face high risks due to the nature of their work. General liability insurance protects you from paying out-of-pocket for expenses and damages should you be sued or held liable 

Whether you have an office building or a workshop, property insurance protects your building and its contents. Contractors contents can also be covered at their respective job sites. 

If you have three or more employees, or pay wages of more than $500 in any quarter of the year, Wisconsin law requires that you carry Worker’s Compensation insurance. If a contractor’s employee is injured on the job, while providing a cabinet install for example, Workers Compensation could cover an incident like this. 

If a contractor uses trucks, trailers or other vehicles for work, business auto coverage can keep them and their employees protected. 

Why is it important for contractors to have insurance?  

Contractor’s work at several job sites. It’s important to make sure they are covered, wherever they are working. 

Many tools contractors use can be expensive to replace. It is especially important if these high value tools move from job site to job site that proper protection is in place.  

Liability coverage for contractors is very important in regard to negligence from their work. Should an individual(s) get injured from that contractor’s work, it could lead to a large case. For example, there may be protection for a contractor who builds a deck at a residence, and then an individual gets hurt from that contractor’s faulty workmanship. 

What does Contractor Insurance Protect? 

Rural Mutual offers protection for faulty workmanship, tools and equipment, employees and vehicles used on the job. 

What kind of contractors need insurance?  

All contractors need insurance! Rural Mutual protects contractors including landscapers, carpenters, plumberselectricians and more. 

For Example 

Jacob is a landscaper and while mowing his client’s lawn, he damages a portion of the garage while mowing around it on his riding lawnmowerHis liability coverage could protect him for the property damage he would be liable to repair.  

For specific information regarding coverage for your business industry, talk to a local agent. 

Author: Sara GradeManager – Products & Product Training at Rural Mutual Insurance Company