Every business requires insurance, and small contracting operations are no exception. Your business requires the right insurance for your contracting practices and the services you provide, which is why choosing the right coverage is key.

Insurance policies can be bought on a stand-alone basis to cover certain risks, like property loss or liability claims, or these protections can be packaged into a suite of coverages that insure against the many of the common problems contractors face. These coverages include:

• Commercial liability insurance
• Property insurance
• Commercial vehicle insurance
• Workers compensation insurance
• Business interruption insurance
• Equipment breakdown insurance
• Cyber insurance

Several of these coverages can be bundled into a single plan known as a business owners policy (BOP). A BOP can be a convenient way to help affordably obtain financial protection and efficiently handle some of the administrative side of your commercial insurance. You can also get coverage designed specifically to meet the needs of the construction market, sometimes referred to as contractor's insurance coverage.

Choosing the right insurance can set you up for success

You have made, and will continue to make, significant investments in your property and personnel. Having the right contractor insurance coverage can add a layer of financial protection for your business, can minimize financial risks and can help make your business more appealing to potential employees and investors.

Coverages like contractor liability, contractor property insurance or contractor vehicle insurance can all help protect your assets. Policies like these can help cover damages that result from severe weather, theft, vandalism, fire, and other events.

The right policies can also reduce financial risks and losses that could occur as a result of:

• Lawsuits arising from injuries or property damage to non-employees
• Business interruptions caused by covered events, such as a fire or theft
• Natural disasters
• Damage to borrowed equipment
• Theft or damage to employees’ tools

Workers’ compensation insurance is another key coverage that can protect your business from financial loss if an employee is injured on the job. It is required in most states and often comes with return-to-work programs, which can help prevent you from losing qualified talent due to an adverse event.

Questions to ask your insurance agent

Insurance is a necessary business expense, but it is also an important investment in your future. Before making any investment, it’s wise to get smart. Here are some key points to discuss with your insurance agent before purchasing a policy.

• Clarify what is and isn’t covered and learn the maximum amount your policy will pay on claims (known as the policy’s limits).
• Find out if your credit history will impact your ability to get coverage.
• Ask how purchases, new hires, and future expenses will affect your coverage.
• See if the policy can be personalized to fit your needs.
• Ask your agent to help you do a risk assessment to see which coverages will be most beneficial to your business.
• Ask about the insurance company’s stability rating or check at AM Best, a well-known rating service.
  
  

A Westfield Insurance agent is a great resource to help you assess your options for contractors insurance that fits your budget and your needs. We offer bundled coverages as well as stand-alone insurance policies for contractors and would love to help your business get and stay protected against financial loss.