Residential contractors do important work that encompasses a broad amount of construction. When we think of residential contractors, it’s natural to think of a company that built our home or a dozen subcontractors who did a portion of the work. While these businesses and work projects have often been easy to insure and coverage is only a phone call away, it’s essential that these contractors understand their policies and know their coverage. Here’s what you should know about insuring residential contractors.

Insurance for Residential Contractors

Why you need it

Most businesses need insurance. Whether you own a global enterprise, a startup, or are a freelancer, you will need insurance of some sort to protect your hard work and investment. Residential contractors are not exempt from this. They work in situations where a lot of small things can go wrong. The combination of sharp tools, electrical wiring, and being in other people’s homes can result in sticky situations. Accidents happen even to the most conscientious professionals. This is the case even when you’re surrounded by someone else’s property and cannot control who comes in and out while you are working. The likelihood of harming someone else’s house or of outsiders getting hurt tends to be relatively high.

How insurance can help

Accidents and mistakes happen, even when you’re working to ironclad plans and are careful with equipment. Having an insurance policy you trust can step in to help when the worst happens. While you should work to avoid accidents at all times, your insurance gives you the peace of mind that you have a financial safety net in place if you need it.

Insurance helps your customers

Before you begin a project, you should ensure you have the right residential contractors insurance in place. Not only does this protect you, but it helps your customers. It shows them that you’re a trustworthy professional. It shows that you have taken precautions and aren’t taking risks with their property. Insurance gives them peace of mind and can help you close the deal.

Types of insurance you need

  • General liability – This is the most basic policy type and every business owner will need it. It works to cover you when accidents occur that damage property or injure your customer or third-party. That means if your assistant damages a piece of furniture or a customer trips over the wiring, your insurance will step in to replace items and pay medical bills.
  • Professional liability insurance – For self-employed contractors, this is a must. It covers you if a customer claims that you did a job badly or didn’t fulfill your contract. Whether or not their statements are justifiable, this coverage will step in to help represent you.
  • Commercial auto – If you have a business vehicle that you drive for work, you will need to protect it with a commercial policy. Your personal auto insurance will not help, which is why it needs a separate policy for the commercial use.
  • Workers’ compensation – If you have even one employee, you will need workers’ compensation that protects your business if the employee gets injured on the job.

Residential contractors have unique risks, which is why it is so important to secure the right coverage. Work with the right insurer to find suitable residential contractors coverage for your needs and budget. For the commercial insurance to protect your business or construction mortgage in Nassau County, NYcontact the team at Northeastern Group Ltd. Serving New York and beyond, we are here to make insurance a snap. Contact us today for a quote.

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