What is Covered in a Standard BC Contractor Insurance Policy?
Commercial General Liability Insurance
This policy protects contractors against common claims like third-party property damages or bodily injury – if a customer visits your office and falls, slips, or is otherwise injured. Commercial general liability insurance can cover your legal fees and medical expenses for customers if you or your company are named in a lawsuit. Your commercial general liability coverage limits apply to all employees in your company.
Note: Commercial general liability and professional liability insurance are two very different policies. If you are a construction professional, you may need to include the addition of professional liability insurance into your comprehensive contractors insurance policy.
Commercial Property Insurance
Commercial property insurance protects your facility or business from uninsured risks, such as fire, theft, or flood. You can also get business interruption insurance to cover the loss of income due to an insured event. You may also be covered for overhead costs and employee wages. Business interruption coverage does not cover income loss due to an epidemic, infectious disease or government-mandated closing.
Equipment and Tools Insurance
As your tools and equipment are your most valuable assets, it is crucial to have tools and equipment insurance. This policy covers you to replace or repair damaged tools, equipment, accessories, and property of others.
Builder’s Risk Insurance
Also known as construction liability insurance, builder’s risk insurance protects your building from expensive third-party claims during a project. This coverage is usually required by contractors, but you might be responsible for it. Before you finalize the details of any project make sure to check with your client about who is responsible for purchasing insurance and ensure all parties are adequately covered.
Business Auto Insurance
This is also called commercial vehicle insurance or business automobile insurance. It covers vehicles like cars, trucks and vans that are used for business purposes. A commercial auto policy should be purchased for any vehicle used to transport goods, materials, and equipment.