Five Types of Insurance for Contractors to Consider

Contractors get the freedom to work when and where they choose, but that doesn’t give them freedom from risk. While there is an almost endless array of insurance policies you can cover yourself with as a contractor in order to protect yourself from these risks, following are four basic types of coverages that all contractors should consider having.

Professional liability: Professionals have liabilities that are specific to their profession as well as the medical and financial risk they expose their clients to. Professional liability insurance protects contractors from these risks; examples include malpractice insurance and errors and omission coverage.

General liability: As a contractor, your liabilities are different from those of a shop owner, but that doesn’t mean that you have none. In fact, your liabilities could be numerous and may vary greatly depending on the line of work you are in. A general liability policy is the best way to ensure a broad-based coverage for much of your business liability risk. Builders risk, roofing contractor insurance and other industry-specific liability plans are also available and should be considered in order to achieve full protection.

Workers compensation: Sure you work as a contractor, but do you employee anyone to help you out? If you have a regular employee on your payroll then you need worker’s compensation insurance.

Property insurance: Whether you need to protect the property you have in your home office or that which goes out with you into the field, property insurance ensures that you don’t have to pay out of your business’ pocket to replace or repair damaged items.

Auto insurance: As a contractor, you may have a lot of driving to do for your business. If you need to drive to business meetings, drive to work and supervise activities onsite, or drive as part of a service you offer your clients, then a commercial auto insurance policy for contractors could save you many hassles in the future as it reimburses you for damages to your vehicle when it is used in the line of duty.

If you aren’t sure which type, or types, of insurance would be most appropriate for you as a contractor, let your agent know. Once he or she has a better picture of what your work entails, they can develop an insurance plan that covers all eventualities and even incorporates insurance types that are often associated with businesses rather than contractors—like group health plans and umbrella policies.  

Learn more about Maryland contractor insurance including types of coverage and factors that affect your insurance premium. Contact us to get free auto insurance quote at (301) 899-6117.

Your individualized quote for homeowners insurance is not found on any kind of static chart that matches your age, home value and deductible information to a set price. Homeowners insurance quotes are specifically developed for each applicant and are based on the very personal details of your lifestyle and living space. Here’s a taste of what some of the factors involved in your premium pricing include:

The age of your home: Older homes are less fortified against natural disasters than newer homes, and are also more expensive to repair. Newer homes are built to new safety standards and with more durable materials. What does this mean to you? That if you have an older home, you can expect a more expensive homeowners insurance quote.

The construction of your home: Wood frame houses are susceptible to fire in a way that concrete block and brick homes are not. Concrete homes can also stand up to harsher environmental elements. That makes wood frame houses more expensive to insure.

The breed of dog you have: You might think your pets have no bearing on the price of your homeowners insurance premium—but then, you’d be wrong. Some breeds of dog are known for their propensity to attack strangers. While your dog might be perfectly trained and accepting of a belly rub from anyone on the block, if you have one of the higher risk breeds then the reputation of the breed supersedes Fido’s prior behavior and will result in a higher insurance premium due to increased liability.

Fire protection options: Smaller towns don’t always have their own fire department. Instead, they might have a volunteer force to fight the small blazes, with the bigger city force stepping in to handle the larger fires. The type of fire fighting force you have access to in your home will help determine what types of rates you are charged for your insurance. In addition, your proximity to a fire hydrant can affect the premiums you are charged—with closer proximity rewarded by lower premiums.

Insurance companies need to know all the details when they are evaluating your property for homeowners insurance coverage. Each of the details above, along with countless others, come together to create a picture of the total risk you and your family expose the insurance company to. It is this comprehensive picture with both positive and negative points that will determine the premium you are charged.