Coverage Every Colorado Contractor Should Consider
Construction is one of Colorado’s most active industries, but working on a construction site comes with substantial risks. Contractors may work with heavy equipment, power tools, electrical systems, building materials, and other hazards while also managing expensive projects and tight deadlines. An accident, property damage claim, equipment loss, or lawsuit can quickly create a significant financial burden.
For contractors in Longmont and throughout Colorado, having the right commercial insurance is an important part of protecting a business. Whether you are a plumber, electrician, mason, homebuilder, remodeler, or general contractor, the right combination of business insurance policies can help protect your employees, equipment, finances, and reputation.
Why Do Contractors Need Commercial Insurance?
Contractors face risks that can change from one job site to another. A customer could claim that your work damaged their property, an employee could suffer an injury, or expensive tools could be stolen from a job site. Even a mistake that appears minor can result in expensive repairs, delays, or legal action.
A comprehensive contractor insurance plan is designed around the specific risks associated with your business. Depending on your operations, your coverage may include general liability insurance, workers’ compensation insurance, commercial auto insurance, builders risk insurance, and other specialized policies.
How Can Business Insurance Protect Your Contracting Company?
General Liability Insurance
General liability insurance is an important coverage for many contractors. It can help protect your business if a customer or another third party claims that your company caused bodily injury or property damage.
For example, if a plumbing contractor accidentally causes water damage while completing a project in a customer’s home, a covered liability claim may help pay for eligible damages and related legal expenses.
General liability insurance can also provide protection when your business faces certain advertising injury or personal injury claims, depending on the policy.
Workers’ Compensation Insurance
Construction work can involve significant physical hazards, making workers’ compensation insurance particularly important for contractors with employees.
Colorado generally requires employers with one or more employees to carry workers’ compensation coverage. The policy can help provide benefits for eligible employees who suffer work-related injuries or illnesses, including covered medical expenses and a portion of lost wages.
Workers’ compensation insurance can also help protect the business from certain employee injury-related claims.
Commercial Auto Insurance
Contractors frequently travel between offices, supply stores, customer properties, and construction sites. If your company owns or uses vehicles for business purposes, commercial auto insurance may be necessary.
Commercial auto coverage can help protect company vehicles and provide liability protection for covered accidents. Contractors should make sure their policy accurately reflects how their vehicles are used and who operates them.
Builders Risk Insurance
Construction projects can involve thousands—or even millions—of dollars in materials, fixtures, and equipment before the project is completed. Builders risk insurance can provide coverage for certain property associated with a construction project while work is underway.
Depending on the policy, covered property may include building materials, fixtures, and portions of the structure under construction. Contractors and project owners should discuss the specific coverage requirements for each project.
Protecting Tools and Equipment
Contractors rely on tools and specialized equipment to complete their work. Theft, accidental damage, fire, and other unexpected events can create expensive replacement costs.
Depending on where equipment is stored and how it is transported or used, contractors may need additional coverage such as inland marine insurance. This type of coverage can help protect certain business property while it is being transported or used away from a permanent business location.
Your Insurance Should Match Your Business
There is no single insurance package that works for every Colorado contractor. A residential remodeler may have different exposures than a commercial general contractor, while a plumber or electrician may require different coverage than a masonry company.
When reviewing your commercial insurance, consider:
- The type of contracting work you perform
- Whether you have employees or subcontractors
- The value of your tools and equipment
- Company-owned vehicles
- The types and locations of projects you take on
- Contractual insurance requirements
- The value of materials stored at job sites
- Your potential liability exposure
Keeping your insurance up to date is especially important as your business grows, takes on larger projects, hires additional employees, or purchases new equipment.
Protect Your Colorado Contracting Business
The right business insurance can provide valuable financial protection when unexpected problems occur. From general liability insurance to workers compensation, contractors should carefully evaluate their risks before choosing a policy.
At Mountain Insurance: Longmont, we help contractors in Longmont and communities throughout Colorado evaluate their insurance needs and develop coverage tailored to their businesses. Whether you’re an independent tradesperson or operate a larger construction company, our team can help you understand your commercial insurance options.
Cost for Contractors Insurance
Your type and size of business, claims history, years of experience, and location will all factor in the cost of your insurance as a contractor. For a tailored business insurance plan and quote, please contact Steve Longenecker (303-808-9351 x2) at Mountain Insurance: Longmont.
We give out $25 gift cards for referrals that become our insurance clients.
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