Contractors are at risk of incidents that may cause additional expenses, ranging from site injuries to the collision of a work vehicle. There are affordable contractors insurance options that every contractor should consider to be protected from these unforeseen circumstances. Moreover, most clients require you to have insurance. You may hurt your chances of winning projects if you are not properly covered. Below are five of the most important types of insurance that you should have as a contractor.

Errors and omissions insurance

This type of insurance is also called professional liability insurance. It covers claims caused by mistakes or errors on your end, either made by you or your workers. One example is if a client complains that you used the incorrect materials causing problems in their property. Another one is if a client claims that your recommendation did not work or it caused an unwanted outcome in their place. Whether what they say is true or not, you may be held liable for it. This coverage will pay for the expenses involved in the said situations.

General liability insurance

Two of the most common problems that contractors face in their projects are property damages and injuries to others. With the right insurance, the expenses related to these incidents will not come out of your pocket. Having general liability insurance will save you the headache of worrying about the costs. Having safety measures on-site is important to prevent accidents, but there is still a chance that they may happen. Do not take the risk of not being covered in these circumstances.

Commercial auto insurance

It’s not just businesses in the transport industry that require commercial auto insurance, but any company that uses a vehicle for work. It could be a company car for driving from one site to another, for purchasing materials, meeting with clients, and the like. It could also cover a personal car used by an employee for business-related matters. Road mishaps could happen that may result in injuries, and car or property damage. Your company must pay for these expenses if you do not have commercial auto insurance.

Worker’s compensation insurance

Workers could get hurt on-site while working. It could cause serious injuries that require medical attention or even hospitalization. The accident may also cause disability, or worse, it could be fatal. Your company will have to pay for medical expenses, funeral expenses, or disability support if you do not have the right coverage. Worker’s compensation is the insurance that will cover these events. It will also cover loss of income if the employee cannot get back to work because of the injuries sustained.

Tools and equipment insurance

The equipment and tools that you use at work could be lost or damaged. They may be stolen or broken due to accidents or natural disasters. Repair or replacement could be costly. You don’t have to shoulder these expenses if you are covered by tools and equipment insurance.

Having the appropriate insurance as a contractor will win you more projects, and it will also protect you from unexpected expenses due to work-related incidents.

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