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Blog: The Essential Complexities of Contractors Insurance

By June 15, 2019July 24th, 2019Blog

It’s not one size fits all

At it’s most basic, contractors insurance is coverage that can protect your organization from highly destructive financial debts that can result from work-related accidents. A specialized policy issued by a full-service Risk Management Agency – like Sterling Insurance Group – allows you to easily customize and simplify your insurance coverage to ensure that your business’ unique needs are protected.

This coverage can protect your company’s livelihood just in case it’s threatened.

A specialty contractor insurance policy is an easy way to cover multiple risks without having to settle for a one-size-fits-all policy that wastes money on coverage you don’t want or need.

How can contractor insurance protect you?

Below are some of the ways contractor insurance can help protect against common risks:

  • Commercial Property Coverage: When a fire, theft or another type of disaster strikes, your commercial property and everything within it can suffer a significant loss. This can have a detrimental effect on your business.
  • Business Auto Insurance: As a contractor, you have many exposures associated with your business vehicles – owned or leased. With a fleet of cars, trucks, vans or other types of vehicles used in the course of business, a single accident can potentially put your contractor business in financial jeopardy.
  • Contractors’ Equipment Coverage: You’re constantly moving your tools from one job site to another, exposing your contractor business to potential loss due to damage or theft. And without your specialized tools and equipment, your job site may come to a screeching halt.
  • Hold Harmless / Additional Insureds: If you are performing as a contractor on a construction project where other contractors and vendors are involved, you could be held liable for any damages or injuries caused by the other contractors or vendors, leaving you with costly legal fees and settlement costs. Your business needs to be protected against the risk of some other company, vendor or subcontractor causing damage to people or property of your mutual customer.
  • Builders Risk and Installation Insurance: A building under construction is not covered under a standard building insurance policy or a home insurance policy since it is not a complete structure. As a contractor, you may be responsible for unique loss exposures related to buildings under construction such as the theft of building materials and high valued equipment such as generators and compressors.

… Just to name a few.


In general, a good policy includes general liability that covers you against claims of damage or injury caused on site or to visitors on your own premises. Such costs can be immense and general liability insurance is often mandatory if you want to bid for government contracts. Learn more about this area of coverage in our industry-specific pages.

Need help choosing the right contractor insurance policy? Contact us today by clicking “contact” in the navigation menu.