Getting a new job or working with a new client is thrilling, but there are some things to consider discussing with your contracting clients before they get to work on the job site.
As an agent it is important to warn your clients that they don’t have the same protections as payroll employees. While this means that your client has the freedom to work as they want and set their own hours, it also means that they have to ensure that their bases are covered.
At Craig and Leicht, we’ve helped our agents to get their contractors the coverage they need before setting foot on a job site. Here’s our checklist for what you may need to recommend your clients before heading to the job site.
1. General Liability Coverage
Make sure you always highlight the importance of general liability insurance, regardless of whether the client requires the contractor to have it.
General liability takes care of your basic risks such as bodily injury for customers, property damage, personal and advertising injury, and completed operations liability.
2. Equipment Coverage
Depending on the nature of your contractor’s work, you may want to recommend equipment coverage in addition to general liability policy. An equipment add-on can help cover the costs to replace or repair your tools if they get damaged or stolen.
3. Data Breach Coverage
Another general liability add-on option is data breach coverage, which has become increasingly popular among contractors who rely on technology. Data breach coverage protects in case a hacker gains access to your customer’s sensitive information. This policy helps you cover the costs associated with notifying clients, offering credit monitoring, and improving your internal security. The can often be added to the General Liability policy or written as a stand alone coverage.
4. Professional Liability Insurance
Professional liability insurance protects you from any claims regarding oversights while performing a service, breaches of contract, professional negligence, or delayed completion. This coverage takes care of legal and settlement costs if the client sues over one of these issues.
It’s beneficial to always recommend professional liability coverage on top of the general liability coverage to avoid worries about a minor issue bankrupting your client’s business.
5. Commercial Auto Insurance
If your client has a work vehicle that he uses to visit the job site, you’ll likely want to recommend they purchase commercial auto insurance.
6. Builder’s Risk Insurance
Builder’s risk insurance is an excellent option for contractors doing ground up construction or major renovations. Builder’s risk coverage takes care of the costs associated with fire, weather, vandalism, and more. For example, if your client is building a house up in Dallas and a tornado rips through the job site, the builder’s risk insurance will cover the cost to repair or replace damaged items.
7. Worker’s Compensation Insurance
Worker’s compensation insurance takes care of employees who are injured or become ill on the job. Many states require this coverage for employees, but we always recommend having it if the client operates a contracting business with more than one team member.
8. Commercial Property Insurance
We recommend agents to advise their clients on getting commercial property insurance if they have an office or warehouse space. While this may not have anything to do with a job site, it is good to know before clients start a project how much time they’ll spend in their workspace and how much time they’ll spend on site. This coverage insures the property itself and any equipment or assets in case of fire, vandalism, or other events.
Clients likely won’t need all of these options all the time, but it’s a good rule of thumb to review what you might want to recommend for coverage before they start working. We believe that it’s best to be prepared.
If you have any questions about what coverage your client needs for a specific job or business in general, we’re happy to help. We promise that no request is too strange, and we’ll do everything we can to craft a policy tailored to your client needs.