Contractors Insurance

Your policy doesn’t automatically provide coverage for poor workmanship. However, some insurance companies offer optional coverage for this at an additional cost.

A general liability policy typically covers you and your employees for the scope of your business operation. It doesn’t automatically cover additional independent contractors. Still, you may have the option to temporarily add independent contractors to your policy as additional insured. Alternatively, you can require your contractors to purchase their general liability through a contractor’s policy, listing you as the additional insured.

The cost of your policy depends heavily on the amount of risk related to the type of work you’re doing. For instance, a roofing contractor might require a more expensive policy than a plumber because of the increased risk of falling.

A business owner’s policy (BOP) provides coverage for small businesses operating in a low-risk industry. It also combines your liability coverage with additional coverages like property insurance. High risk industries like construction usually aren’t eligible for a BOP, and if you don’t own commercial property, you’d likely be paying for more coverage than you need.