Thompson Insurance is your local Contractor’s Insurance expert! We insure many different types of contractors from Landscapers, Electricians, Carpenters, and much more!
Don’t underestimate your risk
Getting the right independent contractor’s insurance in place can protect you from lawsuits, mishaps and third party property damage that can devastate your business.
Normally, you will need a few different categories of coverage for complete liability protection:
General liability: The foundation of all contractor’s insurance coverage is a general liability policy. This coverage will provide two types of protection:
Bodily injury Provides coverage if you or someone you employ causes injury or death to a third party during the course of work. It provides for medical care for the injured person and covers your legal defense if you are sued for damages.
Property damage Provides coverage if you or one of your employees causes damage to property belonging to others. This also includes the building or property you are working on.
Completed operations/product: Provides coverage in case a project you finished has an issue or causes damage. It can also extend to any products you sell or distribute.
Advertising personal injury: Covers the risk of damaging another’s reputation or causing a loss through slander, libel or false advertising claims.
Contract liability: This covers you in a contract dispute. It is not always included in general liability coverage so verify that you carry this coverage with your insurer.
The specific independent contractor’s insurance coverage you need will be unique to your business. By working with a knowledgeable agent, you can ensure that you don’t have critical gaps in coverage that could leave you exposed to expensive legal claims.
Top Coverage Considerations for Independent Contractors
Errors and omissions: Contract employees who provide consulting and advice, such as accountants, financial planners, interior designers and landscape architects, should recognize liability risks due to losses a client may experience as a result of their recommendations.
Bodily injury and property damage: Contractors who work with heavy machinery and tools need to be concerned with mishaps due to hazards.
Product and liquor liabilities: Contractors who serve food and alcohol need to be concerned with potential injuries and illnesses due to food and alcohol served.
Medical and disability: As a contractor, you may not be on a group plan to cover your own injuries. This can leave you exposed to a loss of income risk if you become ill or injured.
Do you need a Business Owners policy?
A business owners policy, or BOP, is a bundle of policies to provide complete coverage for a business. This typically includes contractor’s insurance.
This type of bundle expands the policy to cover risks that small business owners face, and also typically results in a discount on the cost of your insurance as a whole. It is especially necessary if you have employees.
Some of the additional coverages that can typically be bundled with a BOP include:
Property damage: This insurance covers your owned or rented property if it is damaged. This includes office buildings, storage facilities, warehouses, workshops, or garages. It does not cover commercial vehicles.
Business income: This protects you from loss of income when business is interrupted. It usually covers income and operating expenses for up to 12 months.
Commercial auto: Insures your cars, trucks, vans, specialized trucks or any vehicles used for business purposes.
Do You Need Workers Compensation Insurance?
As an independent contractor, you may or may not need to have workers compensation insurance. Each state mandates their own Workers Compensation regulations. If you do not have employees, you are most likely not required to buy workers comp. However, in some states, you need to purchase workers comp even if you don’t employ others.
If you are a contractor who employs other workers, your state will most likely require you to carry this insurance. This policy protects workers from job-related illness, injury or death. It will also reimburse workers for lost wages if they cannot go back to work. The benefit to you, as the employer, is that this coverage can help to prevent losses from employee lawsuits.
Should You Consider Professional Liability Coverage?
When you are looking for the right contractor’s insurance for your business, you will have many choices, including whether to buy professional liability insurance, also known as “errors and omission” insurance or “E & O.”
E & O is a liability policy that protects you if you make a mistake that causes a financial loss to a client. Similar to general liability, it will provide legal defense and claims settlements, if necessary.
You may want or need this coverage under the following circumstances:
You provide professional advice in your line of work. This can include everything from recommending a particular type of plumbing or wiring to providing interior design services.
You hire employees or subcontractors who provide any sort of advice or consulting services.
Your state requires you to have E & O insurance due to the work you perform.
It is important to know that subcontractors are not always insured under your policy. This is why it is always important to make sure they have a CGL policy as well, before doing business.
How to Start Your Quote
To get started on your quote, call our office or click over to our quotes page. Either way, we’ll make the process simple!
We serve the North Mississippi area, in towns like Olive Branch and Southaven including Desoto County, Tate County, and Lafayette County.