Towards the end of the year, social media was full of posts demonstrating how much people changed over the last decade. While it was a passing social media trend, these "look how much I've changed in the last 10 years" pictures can be a good reminder to look at how much your business has changed in the last 10 years. How much have you grown? How different is your business model?
And are your contractor insurance policies changing with you?
Let's take a look at the contractor insurance policies you may need in 2020:
1. Builders Risk Insurance
You might hear builders risk insurance (sometimes called course of construction insurance) is designed to provide insurance coverage on your project while you're working on it.
In addition to buildings and structures, builders risk insurance policies can also cover building materials, landscaping, fencing, scaffolding, outdoor fixtures and more. Remodeling projects, as well as new residential and commercial construction and model homes, are usually covered too.
Builders risk protects your investment in a project -- your materials, supplies, and completed work -- from risks like vandalism, fire, and more.
2. Workers' Compensation Insurance
If you've grown your contractor business from a one-man operation to one with multiple employees, you're going to need workers' comp.
Workers' comp is designed to cover medical expenses, lost wages, and other costs if an employee is injured while performing work for you. In some states, workers' compensation insurance is required by law, even if you only have a single, part-time employee.
3. Contractor General Liability Insurance
Contractor general liability insurance is a must-have insurance policy for any business owner. And that includes construction business owners.
General liability protects you from lawsuits resulting from third-party bodily injuries, property damage, and even advertising damages.
4. Inland Marine Insurance
Your tools and equipment are always on the move. Commercial property insurance is designed to protect equipment when it's at the covered location -- which means every time your tools and equipment leave your business to go to a job site, they're at risk.
Inland marine insurance is designed to protect your property when it's on the move, so be sure your investment in contractor tools and equipment (large and small) is protected by inland marine coverage.
5. Commercial Vehicle Insurance
Just as you need to have insurance on your personal vehicles, you also have to ensure that your work vehicles are insured properly as well. It's intended to protect you from lawsuits, medical claims, and repair costs that might result from an accident when your vehicle is used for work purposes.
If you're relying on your personal auto policy to cover your work vehicles, you're leaving yourself at risk.
It's a new year, a new decade, and the perfect time to take a new look at your contractor insurance coverage.