General liability is a must: Selective Insurance describes a general liability policy as “an essential coverage to help protect your business from liability for third-party bodily injury or property damage claims made against you arising out of your operations, products, and other exposures.” ‘Essential’ is the keyword here. Without this coverage, trade contractors could leave themselves exposed to many unforeseen risks.
Cheap insurance does not equal good insurance: As the saying goes, ‘you get what you pay for.’ Trade contractors should look for the broadest insurance policy possible, even at a higher price, to ensure they have the necessary coverage to protect their business.
As their businesses grow, it is also critical that trade contractors consult with their independent insurance agent about additional contractors' insurance coverages that may be needed to accommodate their expansion. Workers’ compensation and separate auto insurance for their business vehicle may become necessary at some point.
Trade contractors who need to leverage the skills of others to deliver for their customers need to ensure that those tradespeople sign appropriate sub-contractor agreements before any work is performed. These agreements aim to properly apportion liability to the responsible party in the event of a claim, along with helping lay out project responsibilities and requirements. And with the increase of business transactions made online, having cyber liability insurance endorsement is becoming ever more crucial. Counsel from an independent agent can help trade contractors adequately prepare for the future of their business.
With these things in mind, tradespeople can better calculate their risk while safeguarding their work for their customers and providing security for themselves.