If you are a general contractor, a contractor, or a subcontractor, then you need a contractors insurance program to protect your business and your reputation. There are two important types of coverage that make up contractors insurance: general liability (GL) insurance and worker’s compensation (WC) insurance. A contractor is typically required by law to carry GL and WC insurance. It is also important to carry commercial auto insurance if you have employees that drive company vehicles. We work with several carriers that offer business owners policies (BOPs) specifically designed for contractors that offer these coverages and more. To learn more about contractors insurance and why your construction or contracting business needs it, read on, or speak to one of our experts directly by calling 440.871.7261.
Why Every Contractor Needs General Liability Insurance
General liability insurance is a fundamental part of contractors insurance because it protects you from lawsuits brought by third parties. A single accident on the job site can lead to a lawsuit, and if you don’t have proper coverage, your business’s financial health can be seriously jeopardized. Ohio contractors are required to carry a minimum of $500,000 in contractor liability coverage. Our licensed insurance advisors can help you determine if your business needs more coverage.
How Ohio Workers’ Compensation Works
Workers’ Compensation insurance is regulated on a state by state basis. Ohio operates as a monopolistic state fund, and therefore does not permit private insurance for Workers’ Compensation. Workers Compensation for Ohio is available through the Ohio Bureau of Workers Compensation. If you are a general contractor, it is extremely important you make sure all subcontractors have proper Ohio Workers Compensation insurance, otherwise you may be held liable for any non-compliant subcontractor’s liability under Ohio R.C. 4123.01.
Most Contractors Need Commercial Auto Insurance
If you or any of your employees use a vehicle for tasks related to your contracting business, other than commuting, then you need a commercial auto policy. This type of insurance will protect you from the high costs of auto repair, medical expenses, and any legal fees that result from an auto accident. Even if your employees drive their own vehicles, you should still carry commercial auto insurance in case their personal insurance is not enough to cover an accident-related claim.
The coverages outlined above are not all-inclusive of what a contractor needs to be fully protected. To learn about additional insurance coverages you may want to consider, click on any of the links below.
- Commercial Property Insurance
- Builder’s Risk Insurance
- Surety Bonds