Contractors Insurance in Vermont

What is Contractors Insurance?

Contractors are exposed to a number of risks simply by the work they do. Work-related errors, equipment breakdowns, damage sustained by supplies and liability suits are just some of the perils they face. Contractors insurance policies help contracting businesses in Vermont protect themselves from many of the risks they’re exposed to.

Contractors insurance is a specialized form of commercial insurance that’s written with contractors in mind. Most contractors policies are package policies, which means they have multiple individual coverages that work together to form a web of protection against risks that come with working in the contracting industry.

What Businesses in Vermont Need a Contractors Policy?

Most Vermont contractors can benefit from the protections offered in a contractors policy. This includes general contractors, as well as tradespeople (electricians, HVAC service providers, plumbers, etc.). Businesses in these industries generally need coverage regardless of how large or small they are, or how they’re legally structured.

What Coverages Do Contractors Policies Have?

While practically all contractors face risks, the risks contractors face aren’t uniform. In order to meet contractors’ varied insurance needs, the individual coverages included in contractors policies can vary. Some of the coverages that a policy might have are:

General Liability Insurance, which might cover a number of common accidents
Contractors Liability Insurance, which might cover mistakes a contractor makes in their work
Contractors Equipment Insurance, which might cover equipment that’s owned
Equipment Leased or Rented from Others Insurance, which might cover equipment that’s not owned
Inland Marine Insurance, which might cover equipment while it’s in transit
Commercial Auto Insurance, which might cover vehicles a contractor has

General liability insurance and contractors liability insurance typically help pay legal fees and settlements associated with covered liability lawsuits. The equipment coverages normally help protect equipment from certain causes of damage.

Does Contractors Liability Insurance Cover Employee Injuries?

In most cases, contractors liability insurance and the other coverages listed don’t offer protection for employee injuries. Injuries that workers suffer are generally covered by workers compensation insurance, which most contracting businesses that have employees are required to carry.

Workers compensation insurance is normally purchased separately from a contractors policy, but an insurance agent who’s familiar with contractors policies can likely also assist with finding a workers compensation policy.

What is a Certificate of Insurance?

A certificate of insurance is a document that serves as proof that a contractor (or any other business) carries the insurance that’s listed. Potential clients may ask to see a certificate before hiring a contractor so that they know the contractor is properly insured.

Contractors usually receive a certificate of insurance when they get their policy’s initial paperwork. If this original certificate is lost, an insurance agent will either know how to request another certificate.

How Are Contractors Policies’ Premiums Determined?

Insurance companies take into account many factors when determining contractors policies’ premiums. A few of the items insurers might consider include:

What line of work a contractor is in

How large a contracting business is

What equipment a contractor uses

Where a contractor is located

This is just a sampling of the many factors insurers may look at.

How Can Contractors in Vermont Get Contractors Insurance?

Because contractors policies’ coverages vary, policies must be carefully compared to one another. Only after a detailed assessment of each available policy is completed can contactors confidently choose the option that’s best for them.

For help comparing policies, contractors in Vermont should contact an independent insurance agent who specializes in contractors insurance. An independent, specialized agent will be able to compare all available policies, and they’ll know how to accurately compare the coverages in different policies.