The impact of Covid 19 on contractors insurance needs to be considered. Whenever a significant change occurs that impacts your business, it is good practice to check that you still have the coverage you need. Your projects may have been but put on hold, or delayed, and this could impact your coverage.
What should you do to make sure you still have the coverage you need? A two-fold approach can help: check if your current policies are impacted, and assess if there are gaps in your coverage.
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 there may be implications if a project is significantly delayed or abandoned.
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.
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 can not be avoided. There are many management practices you can put in place to minimise risk, such as prioritizing safety on your site. 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. It protects you if you are 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. If an employee is injured at work, this assists with the costs associated with medical care. 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, be it the building itself or the replacements of tools, materials and equipment that are stolen or damaged. It is 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. 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