Contractor Business Owners Insurance Risk

Contractor companies often have a variety of different types of physical assets, and losing them to accidents or unexpected events might cause an interruption in your normal everyday business activities. Imagine a concrete contractor who does not have the use of his concrete mixer, or a welding contractor who suffers a breakdown of his MIG Welder. These are common risks that all contractors face. If your company is small or new, you may not have the ability to pay for repairs or replacements right away, thus you risk losing out on new job opportunities too. Other assets your company owns can be at risk from unexpected events too. Your company’s computers, shop furnishings and inventory can be lost or damaged at any time.

Contractor Business Owners Policy (BOP)

tradsman business owners insurance policy buying guide

Business owners insurance for contractors is also known as a BOP, or a business owners policy. This coverage combines the various benefits from a general liability policy with added benefits for protecting physical assets that your company owns. Your company’s tangible assets may include office buildings, desks, furnishings and furniture; computers and computer accessories; digital software and files; and accounts receivables. Contractor business owners insurance can have specific coverage benefits added so that it is tailored just for your individual company’s needs.

Business Liability

The business liability portion of your contractor business owners policy provides your company with all of the regular benefits and protection normally received from a general liability policy. The standard ways a general liability and business owners policy liability section protect you include:

  • Bodily Injuries – When people are physically harmed.
  • Property Damages – When personal property is damaged.
  • Medical Payments – When minor injuries need care.
  • Personal And Advertising Injury – When slander, libel or trademark related accusations arise.
  • Products and Completed Operations – When trouble is revealed after your services have been rendered, or after a product sale was completed.
  • Premises Liability and Fire Damage – When property rented or leased by your company is damaged due to your actions.

Business Personal Property Coverage

A contractor business owners insurance policy ensures that your company’s personal property is protected from losses caused by common accidents or events out of your control. Depending upon how your policy is structured, this portion of the business owners policy pays costs associated with repair or replacement, for physical assets your company owns that normally reside inside one of your business structures. If you have office furnishings, computers and printers inside a building that is damaged by a severe storm for instance, those indoor items may also suffer damages. Other examples of business personal property include inventory, retail display shelves, and general maintenance or cleaning equipment. Contractor business owners insurance covers those losses for you.

Building and Structures

Generally, the buildings or structures that your company uses for business purposes are critical elements to its continuation and success. When damages occur to a critical building, you may find that you are unable to use that structure until it is repaired. Without a contractor business owners policy, your company would need to pay for the building repairs while also absorbing the losses of income while work was on hold.

Business Income Coverage

When your retail space, office areas, or even your company workshop is damaged to the extent that it cannot be used, your company may lose income because you’re unable to perform standard job functions inside those structures. Contractor business owners insurance can cover your income losses, and even provide protection from any extra expenses that might arise from the problems, such as when you’re forced to lease temporary work buildings.

Valuable Papers, Documents and Receivables Coverage

Contracting companies keep valuable documentation in their offices. Yours likely has job contracts, office bids, bond certification and possibly even your accounts receivables. A business owners policy for contractors helps protect you from having the sole expense of replacing these valuable papers if they’re ever destroyed.

Employee Dishonesty

As an employer of multiple workers, there will eventually come a time when one of those employees is accused of dishonesty. Or maybe you discover that one of your employees is stealing from your company supply room. Whether accused or actual, employee dishonesty issues can general expensive legal actions or cause your company to suffer great losses. Contractor business owners insurance helps protect you from suffering those losses if a covered event happens.

Other Important Coverages

  • Equipment Breakdown
  • Outdoor Sign Damage or Destruction
  • Tenant Betterments And Improvements
  • Electronic Software, Files and Data
  • Newly Acquired or Constructed Buildings
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