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The economy shrank by 32.9% between April and June 2020. Will your construction-related company stay in business? Therefore, the right small contractor business insurance can make sure that it stays open.

Small contractor business insurance is often thought of as a needless expense. This is especially true in the current COVID 19 business environment.  However, businesses have to be more circumspect with their spending. This is true for every industry now more than ever. But, cutting your insurance to save money in the short term can do your business real damage. What is the best way forward?

No contractors insurance? Let’s find out what you will miss out on.

5 Big Benefits of Contractors Insurance

So here are 5 ways your insurance can help keep you in business:

  • Legal requirements:

Legal requirements differ from state to state. And sometimes even city to city. A contractor may be legally required to have General Liability insurance. You will have to produce proof before you start the project. Your competitors will have the advantage. But, why give it to them?

  • Helps build client trust:

A client places their trust and faith in you when they engage your business.  Will you complete the project on time and within budget? Trustworthiness is crucial in the current business environment. Clients are very careful. Many will only choose to continue with a construction project if they trust their contractor. Your good reviews will go a long way to building trust. Your insurance will too. It never hurts to be extra prepared.

General Liability insurance covers both bodily injury and property damage. By pre-emptively making sure that you have your insurance policies in place, you are signalling that you are concerned about the safety of your client and their property.

  • Coronavirus-related liability concerns:

Insurance for your small contractor business can also help protect you from liability concerns brought about by the current pandemic.

General Liability insurance provides coverage to defend claims that a person developed the virus through contact with your worksite. Similarly, if an employee believes that they contracted the virus at work, Workers Compensation insurance can help protect you from any related claims.

  • Coverage for missed deadlines:

In the face of challenging work conditions, many construction projects that were in progress have been affected. For instance, project delays or missed deadlines.

Such situations can often be resolved amicably. However, in the case of litigation, Professional Indemnity insurance (also known as Errors & Omissions insurance) covers both the cost of contesting the lawsuit, as well as the cost of any resulting final settlement.

  • Theft protection:

The rule of thumb is that  20% of all liability claims are related to burglary or theft. Loss of tools and equipment on a construction site can quickly derail any project. Do you have the cashflow to replace them quickly? Can your business take this kind of financial knock?

Is your small contractor business insurance up-to-date?

So, to protect yourself from risk, get your coverage up to date. Insurance for your small contractor business can help you out in several ways. Here are 2 essential insurance policies:

  • Firstly, General Liability Insurance. This is for coverage against third party claims. For instance, bodily injury or property damage.
  • Secondly, Builder’s Risk insurance:  This overs tools and equipment stored or in transit to the building site.


John Brown President Farmer Brown Insurance (888) 973 0016

John Brown – President

Making sure that your insurance coverage is updated is crucial. This is an essential factor in ensuring that you continue to stay in business. Discuss your small contractor business insurance with an insurance expert. So, make that call now.  Call Farmer Brown Insurance at (888) 973-0016.




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