Just starting a contracting business or well established? Small, medium, or large, from handy-man or handy-woman to niche expertise, we are the call to make for Ohio contractors’ insurance. You’ve all got a business to protect and a monthly nut to crack. We get it.
The nature of the contracting business can seem like a perpetual juggling act. A few givens frequently in play: you’re moving from job site to job site, working on other owner’s premises, driving a vehicle(s), transporting valuable tools and equipment. We strive to help you achieve balance by offering contractors’ insurance coverage that is affordable and addresses your exposure to insurable risk.
The main areas of coverage to thoughtfully consider when purchasing contractors’ insurance are briefly reviewed below. Examples and descriptions are simplified and used for ease of explanation. Note that actual policy terms and conditions would apply.
If you own it, insure it. Your building is your base of operation and integral to the operations of your business. It is in your best interest to obtain the proper amount of insurance on your real property and your business personal property kept at the shop. We are able to provide insurance quotes based on replacement cost value or actual cash value. (Actual cash value, often termed ACV, is replacement cost less depreciation.) We will explain the pros and cons of each. Deductibles apply to property insurance.
Inland Marine Insurance:
This portion of your contractors’ insurance package applies to your tools and equipment when they are not at your shop/building. They may be in transit or at a job site. The amount of insurance is usually a total ACV limit with a separate schedule for any individual item exceeding $1,000. in ACV. A deductible of $500. or $1,000. per loss is standard.
If the building(s) you own or lease to operate your contracting business is damaged by an insured loss to an extent that renders the building(s) unsafe to occupy, you are at risk of losing business income. This coverage is designed to allow you time to get back on your feet. Several options are available, and we can assist you in evaluating your specific contractors’ insurance needs.
General Liability (GL) Insurance:
This pertains to your premises/operations exposure. Potential claims that could fall under the GL portion of your contractors’ insurance package are numerous. One hypothetical occurrence that could result in a GL claim against a contractor might be a carpenter driving a nail accidentally hits a water pipe and causes a leak. GL insurance is rated using either the number of employees or payroll (per $1,000. of payroll). GL limits of $1,000,000. per occurrence/$2,000,000. aggregate are common. Reduced GL limits are available for a small reduction in premium.
Care, Custody, or Control (CCC):.
This coverage feature of contractors’ insurance applies to items not owned by the contractor, but which he/she accidentally damages, while in his/her care, custody, or control. A hypothetical example could be a contractor accidentally drops and breaks an expensive light when re-hanging it after he/she has re-wired the fixture. Optional limits for CCC coverage in a contractors’ insurance package normally are in the range of $1,000. to $5,000. per loss. Deductibles vary from $250. to $500. per loss.
Voluntary Property Damage:
This is not protection to voluntarily damage anything. Rather, it provides some financial protection to the contractor in the event he/she accidentally damages another’s property that is not in his/ her care, custody, or control. A hypothetical example could be a contractor accidentally drops a tool on a customer’s table, which results in a deep gouge to the surface. Optional limits for Voluntary Property Damage coverage in a contractors’ insurance package typically are in the range of $1,000. to $5,000. per loss. Deductibles vary from $250. to $500. per loss.
This applies to both auto liability and comprehensive and collision coverage. Ohio law mandates minimum financial responsibility requirements for the operation of motor vehicles. We suggest auto liability limits of $1,000,000. per occurrence. Lower limits are available. Comprehensive and collision coverage are optional and depend on the type and age of vehicles.
Non-Owned Auto Liability:
This is best explained through a hypothetical example. Suppose one of your employees is involved in an auto accident while driving his/her personal vehicle to the local supply store in the course of his employment activity with you. In the event you are sued, this portion of your contractors’ insurance package provides defense costs to you, the contractor, excess of the employee’s personal auto liability limits.
This coverage provides liability protection in the event the contractor temporarily rents a vehicle to be used in the performance of his/her contracting duties. Comprehensive and collision damage may be added as needed.
License and Permit Bond:
A bond is not contractors’ insurance, but may be an additional requirement for doing business in some cities/governmental entities. Contractors that have properly obtained the requisite licenses for the jurisdictions in which they operate may also need to furnish a License and Permit Bond. The purpose of this bond is to guarantee the contractor will comply with applicable laws and regulations, most notably city building codes. Subject to the specific terms of the bond, if the bonding company determines the contractor has failed to comply, it pays the city/governmental entity up to the amount of the bond to have the work properly redone. The bonding company then pursues the contractor for reimbursement.
Cyber Liability Insurance:
This is a newer product to consider adding to your contractors’ insurance package, if you process any payments electronically or maintain personally identifiable customer information on an electronic device(s).
Richey-Barrett Insurance is your Trusted Choice Independent Insurance Agent for Ohio Contractors Insurance.