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Wrap Insurance
This is one of the handiest policies for a contractor to carry. Often called CCIPs if purchased by the contractor or OCIPs if purchased by the owner, these provide liability insurance for the entire project, including everyone working on it. It covers contractors and subcontractors with general liability, and can even cover worker’s compensation.
While wrap insurance is more expensive than basic general liability, it does protect everyone on the project. This means that some subcontractors may not have to carry their own general liability or worker’s compensation policies, which could potentially be reflected in a lower bid.
10/11
Business Owner’s Policy
This is a combination policy with multiple types of coverages. Generally, this includes general liability, commercial property insurance, builder’s risk and other policies that contractors may wrap under one policy for a savings.
For some smaller contractors, a business owner’s policy may be the smartest way to cover all of their interests without excess policies or unreasonable premiums.
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How To Get Contractor’s Insurance
Getting contractor’s insurance isn’t all that challenging. Most commercial insurance agents can assist contractors with their inquiries. Contractors should know how many employees they have, the size of the vehicles they need, the average price of the projects and other business data that the agent might require to provide a quote.
However, contractors should research the required policies in their state and decide what coverages they need. While it’s always better to have more coverage than less, newer contractors might lack the revenue to cover every policy the agent offers. Business owners should keep this in mind when shopping, but they shouldn’t skip a policy they might truly need.
