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What is contractors insurance?
Texas businesses operating within the construction sector encounter numerous risks, such as equipment theft, employee mistakes, vehicular accidents, and more. Contractors insurance can act as a shield against many of these hazards.
Contractors insurance is tailored specifically for the distinctive risks associated with construction. Policies usually have multiple coverages, providing both property and liability protections.
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What insurance coverages are available to contractors?
Contractor insurance policies offer a wide array of protections. Some frequently offered coverages are:
- General Contractors Liability Insurance: Might cover routine accidents that result in third-party injuries or property damage (e.g. "slip and fall" incidents, other common incidents). Could extend to accidents at the contractor's facility, customer's location, or worksite.
- Commercial Auto Insurance: Might cover liabilities and physical damages for contractors if a company vehicle is in an accident or otherwise sustains damage. Could extend coverage to trucks, vans, and other vehicles.
- Commercial Umbrella Insurance: Might cover situations where legal costs and settlements surpass the limits of other liability insurances. Could extend the protection of one or more contractors liability insurance coverages.
- Commercial Property Insurance: Might cover a contractor-owned facility and the items stored in or around it. Could extend protection to tools, equipment, building supplies, and fixtures or other items at the facility.
- Inland Marine Insurance: Might cover tools, equipment, and supplies when they are in transit between worksites and the contractor’s facility. Could also cover items being moved between facilities or between worksites.
- Contractors Equipment Insurance: Might cover tools, equipment, and supplies that are at worksites.Could protect against damage, theft and other risks.
- Equipment Breakdown Insurance: Might cover the costs related to unexpected breakdowns of essential equipment that require immediate repairs for the contractor to continue operations.
- Builders Risk Insurance: Might cover risks specific to the construction industry, such as those associated with construction activities and the materials, fixtures and equipment used on the worksite.
General contractors liability insurance and other liability insurance coverages usually assist with legal costs and settlements related to any covered lawsuits or claims. Assistance typically begins once a covered claim is filed and before a lawsuit concludes, providing contractors with access to legal defense resources when they’re being sued.
Which businesses in Texas need contractor insurance?
Most Texas businesses within construction and the trades should consider contractor insurance. This broadly encompasses general contractors, specialist contractors, subcontractors and tradespeople. A more specific list of businesses that could benefit from this insurance includes:
- Residential and commercial construction companies
- General contractors and new construction companies
- New home builders and residential developers
- Remodelers and renovation businesses
- Demolition businesses
- Trade professionals (e.g. HVAC, electrical, carpentry, roofing, etc.)
- Marine construction specialists
- Landscape architecture specialists
Although all of these businesses may require a contractors policy, their needs are diverse and there isn’t one policy that meets all of the various needs. Businesses should work with a specialized agent who knows contractors policies well. A specialized agent will be able to customize coverages so that they meet a particular business’s needs.
What kind of commercial auto coverage should contractors acquire?
Contractors often require some form of commercial auto coverage for their business vehicles. Several options are available, depending on the vehicles a contractor uses:
- Personal vans and pickup trucks used for work might be insured through a personal auto insurance policy endorsement.
- Commercial pickup trucks, cargo vans, and similar vehicles might be insured through a commercial auto insurance policy.
- Commercial straight trucks, tractor trailers, lowboys, dump trucks, concrete mixers and similar equipment might be insured through commercial truck insurance.
- Multiple commercial vehicles of any type might be insured through fleet insurance,.
- Employee vehicles used for work might be insured through hired and non-owned auto insurance.
- Rented vehicles might be insured through hired and non-owned auto insurance.
How can Texas construction and renovation companies get contractors insurance?
If you’re in construction or renovation and need insurance, contact our team of independent insurance agents at Ramey King Insurance. Our Texas-based agents will work with you to identify a contractors insurance policy that provides the right protections for your business.
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