Artisan contractors, also known as special trade contractors, are individuals or organization that are hired to handle specialized projects requiring a highly developed and specific skill set. Electricians, framers, roofers, masons and plumbers are some examples of artisan contractors. Often as subcontractors, they are hired to handle certain stages of a larger project so that general contractors can deliver a project in its entirety.
The jobs and responsibilities of an artisan contractor can get complicated. They are required to work on site, ensure that their specific job is on time, on track and coordinated with a variety of other specialized jobs all happening at once. No matter how careful you are, there will be unavoidable events that can result in injuries and property damage. As a contractor, the best preparation for these risks is to protect yourself with an insurance policy.
Types of Insurance to Consider
Aside from tools of the trade, acquiring an insurance policy is one of the smartest investments for an artisan contractor to make. With all of the moving parts to a job site accidents are a matter of when not if. These policies have a variety of different nuances and options to choose from. Here are some of the policies we highly recommend you purchase:
Commercial General Liability Insurance
Common General Liability Coverages can include:
- Property Damage – In the case that third party property is damaged by yourself or by an employee, General Liability can cover the cost of the damage and loss of use of the property.
- Damage to Rented to Leased Premises – Covers any damage to property an artisan contractor rents or leases.
- Medical Payments – this coverage pays any medical expenses regardless of who is at fault. Lawsuits can be prevented if medical payments are refunded.
- Bodily Injury – In the case that you or one of your employees causes injury to a third party, medical expenses, compensation loss and other costs that are related to the loss of services are covered.
Business Auto Insurance
Automotive accidents happen, statistically more often than any other type of insurance claim. A study showed that when large vehicles, including trucks, are involved in accidents, the cost of the damage came to an average of approximately $60,000 and resulted in 4,102 deaths a year (2019).
Having business auto insurance, you are covered against third-party claims such as injuries, vehicle damage or loss to property. Similar with commercial general liability insurance, the legal expenses will also be covered whenever things get to court.
Take note that a personal auto policy will not provide coverage for any vehicle owned by the contracting business. These vehicles must have a business auto policy.
Inland Marine Insurance
This type of insurance covers goods that are in transit over land, certain types of moveable property and the transportation of equipment. Inland marine insurance, though known as “floater” policies, is essential especially when the materials, supplies and tools are being transported to and from the construction site. Regardless of who is driving from point A to B, inland marine coverage ensures safe arrival and will compensate for any accidents.
Artisan contractors are also responsible for the safety of their employees.
Workers compensation covers a contractor’s employee if ever they get injured, contract diseases or even lose their lives during the construction project. Coverages usually include medical treatment, rehabilitation costs, disability income and compensation for the loved ones of the workers injured on the job. This insurance policy even provides protection to employers against claims filed in court by the families of a badly injured or deceased employee.
Contractor’s Pollution Insurance
This insurance policy provides contractors coverage for bodily injury, defense, property damage and cleanup costs in the case of pollution arising from an artisan contractor’s work on a project.
This insurance policy is often unique to the specific type of contractor, mainly because of the wide variation of environmental risks and types of contractors, in addition to the various types of projects a contractor works on. Policies are offered either on the basis of occurrence or claims and can be on a blanket program or on certain projects.
Business Owner’s Policy (BOP)
If you’re looking into a more affordable and bundled insurance policy for your business, business owner’s policy (BOP) can be a good choice. This policy combines protection for all the major property and liability risks into one package. It includes the important coverages required in the business and often costs less than the total costs of the individual insurance policies.
Risks are always present in every business, contractors are not the exception. For every potential risk, there is an insurance policy that can cover you, your employees and your property.
You can’t buy coverage after the fact, so you need to have a policy in place before these work-related risks appear. Plan and protect your contracting business for the unexpected, the earlier the better.