Tom's Blog
All businesses are faced with certain risks that may negatively impact its growth, should disaster strike. As a contractor, you have worked diligently and invested time, money, and skill to warrant your business’ success, so isn’t it just as important to have the right type of business insurance in place to minimize those risks that are especially prevalent to your contracting business? A standard N.C. business owners insurance policy will provide protection for covered losses, but you may need to consider the certain exclusions that may apply that could leave you with coverage gaps. Find out the most often overlooked coverage options for contractors that you may not have considered, but may need.
Fill the Gaps
Your contractor business is unique with an entire set of distinctive risks that traditionally may be excluded under your N.C. business owners insurance policy, but through endorsement(s) can be strategically added back to ensure all your potential coverage gaps are filled.
Below are some of the most common coverage options (endorsements) you may need to consider adding to your current business insurance policy:
Contractors Errors and Omissions- This coverage is sometimes referred to as E&O or Professional Liability coverage and is designed to provide coverage for acts of negligence, for which you are legally obligated to pay. For example, if you contracted a roofing job that subsequently leaked and caused major water damage, this type of coverage would provide that type of protection you would need.
Equipment Breakdown- In any business operation, your electrical equipment can breakdown, leaving you and your employees unable to perform your job duties, which in turn may lead to loss of business income. If something like your computers or refrigeration system leaves you unable to continue business operations, this type of coverage provides the cost to repair and/or replace the broken down equipment as well as any lost income that may result due to the equipment breakdown.
Contractor Equipment- When working or traveling to and from the work sites, you carry a lot of expensive tools and equipment that would be very costly to replace. This type of endorsement would provide coverage for your work tools and equipment from common perils, such as theft.
Employment Practices Liability- Sometimes known as EPL, this type of add-on coverage may be needed to provide protection when an employee, past or present, files a claim against you for discrimination, failure to promote, sexual harassment, wrongful conviction, or hostile work environment, to name a few. By having EPL coverage, you will be protected against liability damages brought against you in addition to compensation for legal fees that ensue from employee claims.
Builders Risk and Installation- This type of coverage, by endorsement, can be added to provide coverage for situations that may happen in the process of new construction or installation such as damage to new fixtures, buildings, materials, or HVAC equipment. For example if you are contracting a kitchen remodel job and the new granite countertop gets damaged while working on the job site, this type of coverage would be suitable for the replacement of the granite.
The success and protection of your business is our business here at Paramount Insurance Agency. We are a N.C. independent insurance agency that understands the type of diverse risks to which your contractor business is exposed and want to assist you with getting the right type of coverage options in place before a loss happens that could jeopardize your business future. Call us today at 866-869-3335 to discuss some of your common business risks while optimizing your N.C. contractor business insurance.
