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Business Contractor Insurance for Your Small Business

October 19, 2022 / By: Stampede Insurance Team
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Blog
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Business Contractor Insurance for Your Small Business

Small business owners face plenty of challenges, but finding insurance shouldn't be one of them. Choosing the right business contractor insurance provider is often the first step in building your business. 

We are passionate about how insurance coverage can help companies of all sizes, so here's why you need a top-notch business insurance policy.

What is Business Contractor Insurance?

This includes any type of insurance that protects your contracting company. Most companies need a variety of policies to meet local regulations and also protect themselves adequately. 

Liability insurance is one of the most common types of insurance. It protects you when you are found responsible for damage to personal property, injuries, and more. General liability insurance will help keep your business safe from litigation that can drain your funds. 

Commercial auto coverage is another common necessity, while builder's risk insurance covers building sites and works in progress. Equipment insurance, on the other hand, is also important for companies that use large, expensive machinery. If you use a forklift for work, make sure to get it covered by your insurance. 

That way, the insurance company will pay for damages and repairs. Equipment coverage will minimize downtime and keep your business running smoothly. 

There are many specialized plan options that are suited to contractor companies. They can make your work life a little easier and help you reach your business goals. When you have the right coverage, you're free to focus on improving your company and doing what you do best!

Who Needs Business Contractor Insurance?

Insurance requirements are meant to keep the construction industry standardized. Although it can be a hassle finding coverage, it ultimately protects your company and makes it easier to provide quality work. Everyone needs protection in the form of an insurance policy, but different companies need different things. 

If you have a work vehicle, you need commercial auto insurance coverage. California law requires you to have an insurance policy, but it's also common sense. If your work vehicle is out of commission, that could cost you. 

Not only will you need to pay for repairs, but you'll also lose out on business while you get your vehicle fixed. The same applies to other equipment. Whether you rely on small hand tools or heavy machinery, you need an equipment insurance policy to cover it.

Companies that have employees on the payroll are legally required to have worker's compensation insurance. If a worker gets an injury, this insurance policy will take care of their medical needs. That might include hospital bills, time off from work, and even disability pay.

In short, all business owners need insurance. It's just a matter of finding out which policies are relevant to your needs and which ones are unnecessary. 

How Much Does Business Contractor Insurance Cost?

Business contractor insurance varies depending on the type of coverage you need. There are many options, and insurance agents can help you find a plan that gives you everything you need without any unnecessary coverage or costs. 

Most contractor insurance policies cost less than $70 a month for the premium. Multiple policies can add up, but many companies offer reasonable premiums, especially for business owners who have good credit.

If you want to get a quote for insurance coverage, it's a good idea to collect all the essential information first. 

Here are some details insurance companies are likely to ask for:

  • The business type and specialty
  • The business location
  • The size of the company and the payroll
  • The revenue
  • The history of insurance claims

All of this information will go into their calculations as they determine how much to charge your contracting business. If you're concerned about high premiums, you can shop around between different providers. 

Finding a Company that Specializes in Contractor Insurance

Small businesses have unique needs, and Stampede Insurance has the skills to address them. We protect our clients from having to deal with litigation and other high costs on their own.

Talk to an insurance agent who can help you learn more about the available policies and how they will benefit your company. We offer all kinds of business insurance catered to contractors. To request a quote for contractors insurance, contact us at 888-306-7887 at Stampede Insurance Services today!

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