Why Contractors Should Have Commercial Insurance

Why Contractors Should Have Commercial Insurance

No one really likes paying for insurance, and contractors are no different. There are a lot of contractors operating their business without an insurance policy, and it should come as no surprise that this leaves them vulnerable to many different money losing scenarios. It’s entirely possible that they don’t know how cheap an insurance package could be for contractors or they may not be fully aware of the dangers of not having coverage. With this article we hope to shed some light on these opinions and make sure that you are aware of the benefits of having an insurance package that covers your business and tools.

There are many facets to consider when insuring any type of business operations and a contractors business is no different. We are slightly biased at InsureMyTools.ca as we believe that our packages offer the best coverages for contractors and we will use our policies as the golden standard when explaining the reasons to have your business covered with coverages available from our insurance packages. Every policy is different and it is important to make sure that you are fully aware of what your insurance package is covering you for and how it can protect you, your business, and your tools.

Commercial General Liability Coverage (CGL)

Commercial General Liability insurance (CGL) is coverage that will protect your business in the event that you are sued or found legally liable. When a customer has an injury or damage has been caused by you or your employees, the last resort for a consumer is to usually sue the company that has caused the damages. This is slowly becoming the normal procedure in today’s society and should not be taken lightly as lawsuits can be for millions of dollars.

CGL packages will cover bodily injury, personal injury liability, and property damage liability. Trades men and women have a great exposure to any sort of legal liability. They are in people’s homes and properties constantly, and if their work has a flaw, it could cost someone their life. If your business does not have insurance, it could cost millions of dollars in a lawsuit, and most likely a bankruptcy.

Click here to learn more about commercial general liability coverage.

Contractors Insurance is too Expensive

It is very common to hear business owners say that the insurance policies are too expensive to carry and that they will either have to significantly raise their rates or even not operate their business if they had to have coverage. This theory is usually just a misconception about the insurance packages available.

As you can see from the category above, not having an insurance policy on your business could cost you the business if you were to have a lawsuit brought against you. The entire point of insurance is to protect you from worst case scenarios and try to get you back to the point you were before you had the loss (lawsuit, stolen tools or equipment, etc.). Using the InsureMyTools.ca packages with a starting point of $42 a month, it isn’t all that expensive to cover your business to ensure it keeps operating in the event of a loss. If you grab a calculator you will quickly realize the cost of protecting your business is less than a cup of coffee at your favourite coffee spot a day. It seems like an easy choice to us.

Extra Coverages and Endorsements

As with all insurance packages, there are endorsements to make your coverage better, or in the case of InsureMyTools.ca customers, there are extras on your policy that automatically give you better coverage than a standard CGL policy. These extras on your InsureMyTools.ca are exactly what makes our insurance packages stand out against your normal CGL policies that are cookie cutter policies for every business.

Installation Coverage

An Installation Floater is something you may not know you needed until you had to pay out of pocket for a loss from a job. If you are a contractor, or do installations as a part of your business, having an installation floater might save you a lot of money and grief. The standard commercial insurance policy does not include an installation floater or coverage for your materials, equipment or supplies that are used for installation at your clients location. This means that if you are installing any equipment such as HVAC units, appliances, flooring, windows, or any other object at your clients location, there may not be coverage on your current insurance policy (unless you are already insured with InsureMyTools.ca of course).

Click here to learn more about Installation Coverage.

Business Income Coverage (Classic & Plus Packages)

If you own your business, you already know that sometimes things simply don’t go your way. Equipment and tools go missing or your entire workshop could burn down. For reasons such as these, there are insurance coverages for businesses that lose money from their businesses not being able to operate due to covered losses.

The basic idea behind any sort of business income / business interruption coverage is that your business will get money for the loss of business during a covered peril/loss. If for example your shop burns down with your tools in it and you are unable to get back up and running for a few days, there could be coverage there to replace the loss of income to your business for being nonoperational during this period of time.

Business income coverage is not designed to cover additional costs such as labour or supplies. Its sole purpose is to cover the loss of profits due to the business not be operational.

Click here to learn how business income coverage could benefit your company and possibly save your business from unrecoverable losses.

Machinery and Equipment Coverage

Anyone that has ever relied on a tool or a piece of equipment for their job could imagine what could happen if it ever failed or was stolen. Having the right equipment for the job is essential and if that equipment is no longer available, you may find yourself in a position where you simply cannot finish the job. We don’t want to see that ever happen to your business, so in our insurance packages we include coverage for Machinery and Equipment and the rental use of comparative equipment should yours suffer an insurable loss.

Click here to learn more about Machinery and Equipment Coverage.

Why Contractors Should Have Insurance

If protecting your business from lawsuits, having coverage for your tools, machinery and equipment, business income coverage, or even the installation coverage wasn’t enough to convince you to insure your business; we hope that you at least realize that our contractors insurance packages are not going to break the bank account. With policies that start at $42 a month depending on your businesses size, it is more than justifiable to ensure that your business stays operational and you can continue to be your own boss.

Call us to quote your business today. It’s more than worth it.