Running your own contracting business means there are always a lot of things to keep track of. You need to find customers, schedule jobs, buy materials, maintain your tools, get to each jobsite, and actually complete the work. On top of all of that, you also need to make sure your business is properly protected before you start working on someone else’s property.
Contractor insurance can seem confusing because the coverage you need depends on the type of work you do, whether you have employees, the vehicles you use, and even the requirements of the customers or general contractors you work with. Let’s break down some of the most important types of insurance Pennsylvania contractors should consider before taking on their next job.
Why Contractors Need Insurance Before Starting A Job
When you work as a contractor, you are regularly entering homes, businesses, and jobsites where an accident can become expensive very quickly. You could accidentally damage part of a customer’s property, or one of your employees could be injured while completing a job.
Insurance helps protect your contracting business from those unexpected expenses. In some cases, a homeowner, commercial customer, general contractor, or project agreement may also require you to provide proof of certain insurance coverage before you are allowed to begin working. That makes insurance more than something you need after an accident happens. Having the right coverage can also help you get your business ready to take on jobs in the first place.
Do Contractors Need General Liability Insurance?
General liability insurance is one of the most important types of coverage for contractors because you spend so much time working on property that belongs to someone else. Say you are completing a renovation and accidentally damage part of the homeowner’s property, or a customer trips over something in your work area and gets injured. General liability insurance can help protect your business when you are found responsible for certain types of property damage or bodily injury. For contractors who are constantly moving between customers and jobsites, having liability protection can make a big difference when something unexpected happens.
Do Contractors Need Workers’ Compensation Insurance?
If your contracting business has employees, which could mean even just yourself depending on how your business is set up, workers’ compensation insurance is likely required. Because contracting can be a hazardous industry, making sure your business is protected if your workers become injured is vital to ensure your success. Workers’ comp coverage pays for your employee’s wages in the event that they are injured on the job, taking care of both you as the business owner and the worker.
Workers’ compensation insurance can cost very different amounts, depending on your particular business. Find out more about what affects the cost of workers’ compensation insurance on our blog.
Your Work Vehicles Need Commercial Auto Insurance
Many contractors rely on trucks, vans, or other vehicles every day to get themselves, their employees, tools, and materials to the jobsite. If a vehicle is being used for your contracting business, a personal auto insurance policy may not provide the coverage you need. Commercial auto insurance is designed for vehicles being used for business purposes and can protect your company when an accident happens while you or an employee is driving for work. Additionally, all vehicles in PA are required to have auto insurance, which means commercial auto insurance is a must-have for any vehicles used for business purposes.
Don’t Forget About Insurance for Contracting Tools And Equipment
Your tools are what allow you to do your job, and replacing them after theft or damage can become a major expense. Contractors frequently take tools and equipment away from their main business location and transport them between jobsites. Depending on how your business operates, you may want coverage designed to protect tools, equipment, and other property while they are being transported or used away from your main location.
Let Strickler Insurance Help Set Up Your Pennsylvania Contractor Insurance
Every contractor operates a little differently. The coverage needed by someone working alone on residential projects may look very different from the insurance needed by a contractor with several employees, company vehicles, and multiple jobs happening at the same time.
At Strickler Insurance, we can help you understand your Pennsylvania contractor insurance options and put together coverage that fits the way your business actually works. Whether you need general liability insurance, workers’ compensation insurance, commercial auto insurance, or protection for other parts of your business, we can help make insurance easier to manage. To get your contracting business properly covered before your next job, contact Strickler Insurance today.
