Contractors insurance refers to multiple policies designed to cover the risks that general contractors face on the job. Oegema Nicholson and Associates can connect you with insurance products that combine key coverages, such as general liability and commercial property insurance.
What type of insurance should contractors have?
It’s important to note that insurance providers do not offer a standalone policy called contractors insurance. Instead, they will bundle several useful coverages into a business owners policy — customizing it to suit a contractor’s needs. Here are three types of coverage every contractor should have:
- General liability insurance
- Commercial property insurance
- Installation floater
Let’s face it: Job sites are dangerous. Although a contractor will make every effort to be safe, accidents do happen. That’s why Oegema Nicholson can ensure your business and its employees are well taken care of should the unfortunate occur. Let’s examine the above coverages in more detail to better understand why they’re so crucial.
What is general liability insurance?
This type of coverage protects business owners should they be held responsible for bodily injuries or property damage to a third party. If you’re a contractor, liability insurance may cover you if the work you’ve finished results in damages. For example, let’s say you installed a sink as part of a massive kitchen renovation. But years later, the sink’s plumbing begins to leak — resulting in water damage throughout the house. In this case, the homeowner could hold you responsible even though you didn’t intentionally cause harm.
General liability insurance will cover your legal defence costs should the other party decide to sue. It will also cover medical bills and any other expenses as outlined in your policy. Remember that all coverages have their limits, along with a deductible that must be paid before claims can be processed.
What is commercial property insurance?
All job sites are susceptible to fire, theft or vandalism. Keeping detailed records of your equipment, closing off the property to trespassers and installing the latest fire monitoring systems are all helpful. But despite your best efforts, it’s still impossible to prevent unfortunate situations. That’s why commercial property insurance is crucial in protecting your most valuable assets.
Physical valuables, like business facilities and their contents, can be covered by a high-quality insurance policy. This is particularly useful for contractors who tend to own expensive tools and machinery, which are popular targets for theft. Not only will commercial property insurance cover the cost of stolen tools — but may even reimburse you for expenses related to renting tools in the meantime.
What is an installation floater?
An installation floater will cover materials you were planning to install against loss or damage. For example, let’s say you were about to install a brand new air conditioning system at a job site. You’ve purchased all the necessary materials and everything is ready to go. But the night before installation, someone breaks into job site and steals all the materials. If you’ve invested in an installation floater policy, you may be covered. Ultimately, this floater can help limit the impact on your bottom line — should an accident occur.
How much does contractors insurance cost?
Your insurance premiums will largely depend on the amount of coverage you wish to purchase, the area in which you do business, and the type of contracting work you conduct. Sometimes, contractors who specialize in commercial projects will pay more than those who work in the residential sector.
A trusted insurance brokerage like Oegema Nicholson can help you find the best insurance rates in the industry. Our insurance professionals can leverage their networks to find you the best coverage — at a price you can afford.
Why trust Oegema Nicholson?
In business since 1961, Oegema Nicholson has decades of experience helping contractors protect their most valuable assets. Because we are family-owned and operated, we believe our clients should also be treated like one of us. Proudly serving the areas of eastern Ontario and western Quebec, Oegema Nicholson has six convenient locations to address all your insurance needs. Whether you require basic coverage for a fleet of transport vans or professional liability protection for your renovation firm, rely on Oegema Nicholson to cover all your bases.
For more information on contractors insurance, call us at 613-224-1455 or contact us here.