How to Find the Best Business Insurance for Contractors

November 11, 2022 / By: Stampede Insurance Team
How to Find the Best Business Insurance for Contractors

Purchasing contractor insurance can appear to be a difficult task. You may believe you have a quality of options, but you're not sure if a specific general liability insurance quote is good and which isn't. You may also have trouble determining which quotes are a good deal and which to avoid.

The good news is that finding good general liability insurance for small business policies, for your contracting company is easier than ever. To get you started, we've compiled a few tips to help you choose a good policy and what to look for during the purchasing process.

What is Contractors Business Insurance?

As a non-employee, an independent contractor is a freelancer who performs a specific job for a third party. Because of their status, they are unable to rely on companies to provide insurance or to include them in their existing business insurance plans. This includes a wide range of employment benefits, such as health insurance and employer-sponsored retirement accounts.

As a contractor, your clients expect you to carry out their construction plans, meet deadlines, and ensure that both micro and macro projects are completed. However, all of these responsibilities can expose your business to new risks. Luckily, contractor business insurance can help you protect your professional assets and employees from unexpected events.

A good contractor insurance policy includes several types of small business insurance that cover your business for a wide variety of problems. These issues may include the cost of claims, lawsuits, and property damage to your business.

The liability coverage types you select, on the other hand, are determined by the needs of the contractor's business.

What Insurance Does an Independent Contractor Need?

The majority of independent contractors should think about purchasing general liability insurance or professional liability insurance.

As a 1099 contractor, you can be held liable for causing harm to another person or their property in the same way that any small business owner can.

General liability insurance can help protect against these risks, and you may also be required to have general liability insurance to comply with the contractual requirements of your clients.

Aside from that, the type of insurance you should obtain is determined by the type of contract work you do. A self-employed accountant, for example, should make errors and omissions (E&O) insurance in case they make a mistake that costs their customers money.

General Liability Insurance for Contractors

General liability insurance protects you if you are accused of causing harm to a third party or their property. It can also provide protection from libel, slander, and reputational claims. If you clean people's homes and are accused of damaging their furniture, for example, general liability insurance may help cover your legal costs.

The company that hires you as a contractor may be able to add you to its general liability insurance policy in some cases. In others, the company may require you to carry your own business owner's policy and request a certificate of insurance before hiring you.

Professional Liability Insurance for Contractors

Professional liability insurance is required if you provide services to customers for a fee. This coverage, also known as errors and omissions insurance, protects you if a client or customer accuses you of making a mistake.

Clients may sue you for poor performance if you are a graphic designer, real estate agent, or any other type of contractor who provides services.

Tips to Find the Best Contractors Business Insurance

The unexpected will happen. As a contractor, you’re aware that the unexpected can happen at any moment. If the unexpected occurs, it is best to be prepared, which is where contractors insurance comes into play.

Let’s take you through a few tips for finding the best contractors business insurance:

Ensure Your Insurance Provider Complies with Common Industry Endorsements

Before you take out the policy, make sure it meets the majority of the project requirements you will run in the coming years. Some insurance companies, for example, claim to be experienced in writing contractor insurance but are unable to add a common additional insured endorsement to their insurance policies.

Find a Provider with a Variety Of Payment Options

It is advantageous to have a variety of financial and payment options. You may be unable to use that service due to a lack of payment options. As a result, you may miss out on a great business owner's policy for your organization. 

You want an insurance provider that offers more payment options so that you can keep the best policies in place to protect your company.

Choose Stampede Insurance as Your Contractor Insurance Company

Contractors insurance is the security blanket your company needs and protects your business in the event of a disaster. Finding the best insurance company for your contractor or subcontractors' business can be done quickly and easily, but you may want to connect with a professional to help you choose.

With over ten years in the industry, the Stampede Insurance Services team has provided solutions to clients across the United States.

Our commitment to resolving your business needs distinguishes us from other insurance agencies, and we’re proud to work with top-rated insurance companies to find the best insurance coverage for you.

We're here to assist you with your commercial insurance needs and are uniquely positioned to provide the best in business insurance.To learn more about general liability insurance for a small business, fill out our online form or Contact us at 888-306-7887 at Stampede Insurance Services today!

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