Consider the impact of Covid 19 on contractors insurance.  Whenever a significant change occurs that impacts your business, it is good practice to check that you still have the coverage you need.  Projects put on hold or delayed? This could impact your coverage.


What should you do to ensure you still have the coverage you need? A two-fold approach can help. Are your current policies impacted? Assess if there are gaps in your coverage.


1. Check The Policy Wording of Your Current Policies

If you have not already done so, check your policy wording to see if there is impact from Covid-19 on contractors insurance you hold. Builder’s Risk insurance, for example, has a term limit with a start and an end date.  It is usually 3, 6 or 12 months long.  There can be clauses in the policy that describe the cessation of the policy in other ways too.  For example, if a project’s significantly delayed or abandoned, there’ll be implications.


If you are unsure of what this means for your coverage, our agents at Farmer Brown Insurance are available to speak with you and assist.



2. Check if you have the right coverage for your business

An impact of Covid-19 on contractors insurance is the manner it has highlighted that unforeseen events happen.  Some risks aren’t avoided.  Furthermore, there are many management practices you can put in place to minimise risk. This includes prioritizing safety on your site.  As a consequesnce, and despite this, there can still be accidents and other loss events. Does your coverage provide your business with optimal protection?



What coverage do you need for your business?

The insurance typically required in construction is general liability, workers compensation, property coverage and commercial auto insurance.  In brief, these are as follows:


  • Commercial Auto Insurance. As a contractor you have many vehicles and equipment that you use in your business.  Typically workers need to be transported to site, or between sites.  Vehicles are also used to move things around on site.


  • Contractors Insurance. This is liability insurance that has been tailored for construction.  Consequently, it protects you if you’re held liable for damages to a third party.  Contractors Insurance covers personal damages, advertising damages, bodily injury and property damage.


  • Workers Compensation. This is mandatory when you have employees. Coverage’s provided for costs associated with medical care for an injured employee.  It also assists with loss of income for the employee.


  • Builder’s Risk Insurance. This is property coverage. It covers the cost of property replacement. Thus, it includes the building itself or the replacements of tools, materials and equipment stolen or damaged.  It’s tailored per project and you select the loss events you want to have covered.



Advice about the impact of Covid-19 on Contractor Insurance 

Farmer Brown Insurance consultants can answer your questions about what to do about the impact of Covid-19 on Contractor Insurance. We have more than 20 years experience in the industry.  Thus, let us review your policies and optimize your coverage.  Our agents are experts and will negotiate with A-rated carriers to get you the best rates.  Call Farmer Brown Insurance on (888) 973-0016

Written by: John Brown
John has more than 25 years of experience in the insurance industry. He grew from a star insurance producer to owning one of the largest agencies in the country; he's a reference regarding contractor's insurance, commercial insurance, and builders' risk insurance.