7 Must-Have Types of Building Contractor Insurance

November 18, 2022 / By: Stampede Insurance Team
7 Must-Have Types of Building Contractor Insurance

If you're a building contractor, it's essential to have sufficient general liability business insurance coverage for your company.

This is especially true if you deal with large-scale projects or if your business is based in an area that's prone to natural disasters. It's also crucial to ensure that your insurance policy covers all of the risks associated with your work and that it does so in an affordable way.

To help you find out how much cover building contractor Insurance you need, we've put together a brief guide that includes tips on what type of cover you should look for as well as how much cover will help protect your company from unforeseen circumstances.

1. Builders Risk Insurance

Builders' risk insurance is a form of insurance that protects the building owner against financial loss in the event of damage or destruction to their property. It's commonly used in situations where the owner is not yet occupying the property and has not yet completed construction.

To receive builders' risk insurance, you will need to pay a premium, which is calculated based on your building's value and the extent of the coverage you choose. This type of insurance will cover the costs if something happens during construction, such as if someone were to slip and fall on wet flooring or an equipment malfunctions and starts a fire.

2. Commercial & Contractor General Liability Insurance

Commercial and contractor general liability insurance (CGL) is a business insurance system designed to cover your business or professional practice against third-party general liability business insurance claims.

It covers claims related to bodily injury to workers, property damage, product liability, and other situations where you may be held legally responsible for the actions of your employees or contractors. It also helps protect against uninsured or underinsured automobile motorist claims and personal injury claims by others against you.

3. Errors & Omissions Insurance / Professional Liability Insurance

Errors and omissions insurance is professional liability insurance that protects business owners against the expenses faced when sued by customers in case of accidents while on the job. These types of lawsuits are called professional liability coverage claims.

The most common types of claims are slander, defamation, copyright infringement, and patent infringement. In these cases, an error or omission occurs when a business fails to provide the quality service it promised to its customers.

Errors and omissions insurance can help cover expenses associated with these claims, such as legal fees and settlement costs. 

4. Commercial Auto / Truck Insurance

Commercial Auto/Truck Insurance is an insurance policy that protects you, the policyholder, from liability for harm caused to others by your trucks.

If a driver causes an accident with a company-owned vehicle or one using a commercial driver's license (CDL), this coverage will pay for the legal expenses and damage to other vehicles or property.

The coverage also includes protection for you and other drivers in your vehicle if you are injured in an accident.

5. Contractor License Bonds

Contractor license bonds are surety bonds contractors need to have in place before they can be granted a license by the state. The bond guarantees that the contractor will fulfill any contractual obligations they make to the client.

The purpose of a contractor license bond is to protect the government against fraud and other illegal activities, as well as protect consumers from subpar workmanship.

6. Inland Marine Insurance

Inland marine insurance is a type of insurance that protects your property from damage and loss. It covers the cost of replacing or repairing damaged or lost equipment, as well as covering the cost of freight and storage.

Inland marine insurance can be referred to as inland marine coverage, an umbrella term for several types of coverage that includes inland waterway transportation, inland transportation, inland transit (including rail and truck), and ocean freight coverage.

7. Workers’ Compensation Insurance

Workers' compensation insurance is coverage employers provide for employees in the event of a work-related injury. The type and extent of coverage vary by state, but generally, it covers medical treatment and a portion of lost wages.

It's important to know that workers' compensation isn't available for all injuries that occur at work. Some states require employers to purchase other types of insurance as well. For example, liability insurance helps cover damages caused by an employee's negligence or fault.

Work with a Trusted Partner

When it comes to getting the right general liability business insurance coverage for your company in the construction industry, Stampede Insurance Services have you covered. We have a wide range of protection options tailored to your needs and cost.

We know it can be challenging to find reliable contractor insurance providers in today's market, but we're here to help. We make sure that every one of our clients has the coverage they need from an agent to get back on their feet after an accident or incident occurs while they're working on construction projects.

As much as we love helping people find the right policy for them, we also love hearing about how we've helped them succeed in their businesses. If you have any questions about our quotes, products, or services, please don't hesitate to reach out to us! Contact us at 

888-306-7887 at Stampede Insurance Services today!

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