Depending on the nature of your business, there may come a time where hiring contractors comes into play. This could be because you run a construction business or even because you need a contractor to take care of a project on your agency’s property. Whatever the reason, the insurance experts at Tri-Star Insurance in San Diego believe you should have a good understanding of how contractor liability insurance works.
Contractor Liability Insurance May Be a Necessity
If you are involved in construction, you are likely already well aware of the risks involved that many other business owners do not encounter. Whether you are a general contractor or subcontractor, you will likely be required to carry contractor liability insurance either by law or contract when working on construction projects.
What Does This Insurance Typically Protect?
While coverage can vary, contractor liability insurance usually protects property, including your own real estate, equipment, tools, and work products, as well as the property at the site you are working on. Business liability insurance for contractors also protects against lawsuits and claims filed against your construction agency. In addition, completed operations coverage can protect you against claims for work you performed on a project once it is completed.
Do All Contractors Need the Same Policy?
Your risks will vary depending on the type of construction business you are involved in, and so will your needs for commercial insurance in San Diego. For example, if you are involved in demolition, your risks on the job are quite different from a painter. When selecting a contractor liability policy, make sure your agent customizes a plan to fit your specific business needs.
Is Liability Insurance Needed for Subcontracting?
Even if you subcontract your work out to other agencies, you will still need insurance. A project owner may still make a claim against you for work performed on a project by a subcontractor you hired. You should also make sure any subcontractors working for you have their own insurance coverage in case of a claim.
To learn more about the various liability issues that can arise when hiring contractors or for a free quote on liability insurance for your business, contact American Tri-Star today at 619-272-2100. We also offer affordable auto, health, bond, and homeowners insurance in San Diego. We hope to hear from you soon.