When you buy building insurance it shouldn’t be off-the-shelf. This is because your contractor coverage should consist of a range of products that protect your business against the specific risks that it faces.
While the construction industry is one of the most dangerous across all states, not every contractor faces the same risks. For example, a roofer is more likely than an excavator to be in danger of falling from a height, or dropping equipment or materials and damaging a neighbor’s car.
Why You Should Reassess Your Building Insurance
In addition, your needs can change. Has your contractor business grown? Have you moved from one location to another? Are you now working on bigger projects? These will all affect your building insurance program. This is why it is important to reassess your policies at least once a year.
But, all contractors face one common kind of claim.
Sometimes Your Best Isn’t Good Enough
As a contractor, you provide a service for a fee, right? You likely to make mistakes on some projects whether you’re an excavator, painter, roofer, plumber or general contractor printer Even with up-to-date training in methods, material and equipment, things can go wrong. Accidents happen. Construction isn’t perfect.
However, your clients don’t always see it the same way.
General Liability Coverage
So you’ve made an innocent mistake. Even one of these can have you facing claims for damages. A client may claim that the work is inaccurate or incomplete.
You may think that your General Liability Insurance provides adequate coverage because it includes protection for similar instances that could also be the result of a mistake. For example:
- Harm to Reputation: A client or supplier may sue you if your promotional pamphlets include pictures of them in the background. You have to get their permission beforehand.
- Advertising Mistakes: A client or supplier may allege you infringed on their copyrights. For instance, you could use their logo on your social media. Once again, written permission is required.
Unfortunately, this isn’t the case. You still need Professional Liability Insurance for claims of inadequate work or negligent actions.
Professional Liability Coverage
A lawsuit against your contractor business could be for:
- Negligence in providing professional services
- Incorrect or Incomplete or incorrect work
- Oversights or errors
Professional Liability Insurance will provide protection in these instances. Professional Liability is commonly called Errors and Omissions Insurance (E&O).
Generally, E&O building insurance protects you, as a business owner, from errors and omissions. It also provides protecting for employees or contractors working on behalf of your company. You’ll get coverage for attorney fees, judgements, settlements and court costs up to the limits of the policy.
Building Insurance Assistance
As a business owner, you must be alert because even simple complaints against your contractor business can escalate into legal disputes. And then, unless you have the right coverage, you could experience significant financial loss. For more information about customizing your insurance program, we can help. Speak with a Farmer Brown Insurance agent at (888) 973-0016.