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The category of artisan contractors,
also known as casual contractors, includes many occupations
that involve skilled work with tools at the customer’s
premises. Carpenters, plumbers, electricians, roofers
and tree surgeons are some of them. Also included are
diverse other skilled service providers, such as interior
decorators, piano tuners and exterminators.
Special insurance needs of this group
include coverage for equipment and tools that are often
moved around and for the value of work done for a customer
until it is finished.
For many artisan contractors, the
most cost effective and efficient way to obtain property
and liability coverage is with a businessowners policy
(BOP) especially tailored to their needs. Although marketed
under a variety of names, these policies will typically
have provisions similar to the property insurance and
liability insurance sections of the BOP.
PROPERTY INSURANCE
The BOP covers real estate and other
property your business owns that is located at the described
business premises. If your business rents or leases
its premises, the BOP provides coverage for tenant’s
improvements and betterments. These are fixtures, alterations,
installations or additions that you have put into the
space that cannot legally be removed from the landlord’s
premises.
Your biggest personal property loss
exposures, however, may involve valuable machinery and
equipment that moves around from job to job and is not
covered by the standard property insurance. Such movable
property is insured by contracts that insurers call
floaters.
An installer’s floater covers
all kinds of machinery and equipment during transit,
installation and testing at a customer’s premises.
Even building materials may be covered, but the more
usual coverage is for equipment or machinery that only
contractors install, such as heating or air conditioning.
The policy can be written to cover a single job or on
a reporting form, meaning that you provide the insurer
with information about each new contract you undertake.
A tools and equipment floater covers
the insured property wherever it is used and may include
such items as hand tools, power drills, hoisting machines
and power pumps.
LIABILITY INSURANCE
Given the possibility of a lawsuit
should someone claim to have been harmed by your work,
you will almost certainly need liability insurance.
If working as a subcontractor, your
customer may require you to have Owners and Contractors
Protective Liability (OCP) coverage. This protects either
a property/businessowner or a general contractor from
possible liability arising from the negligent acts of
an independent contractor or subcontractor hired to
perform work on behalf of the insured. The actual purchaser
of the policy is the independent contractor or subcontractor,
but the protection is for the benefit of the property/business
owner or general contractor for whom the work is being
done.
BUSINESS AUTO INSURANCE
Your personal auto policy probably
provides coverage for some business use of your truck,
van or other vehicle. A personal auto policy is unlikely
to provide coverage, however, if the vehicle in question
is used primarily in business. It will not provide coverage
for any vehicle owned by a business. For those vehicles
you must have a business auto policy.
If you’re driving a truck you
own personally for a business purpose and get into an
accident for which you are liable, an injured person
could sue you personally. Will your personal auto policy
have enough coverage to pay all the damages? If not,
a lawsuit may be filed against your business. If you
use personal vehicles for business, you want to be sure
you have high enough limits to protect your business.
You should discuss this with your insurance agent.
Above ©Copyright
Insurance Information Institute.
WORKERS COMPENSATION INSURANCE
The Connecticut Workers' Compensation
Act was first enacted in 1913. There have been numerous
changes to the Act since that time, but the main premise
of the Act has always been to provide wage replacement
and other benefits, as well as medical treatment, for
those employees who have been injured, disabled, or
killed while performing their jobs. In most cases, such
employees are ONLY eligible for benefits under the Workers'
Compensation Act and are prohibited from suing their
employers for benefits. (However, employees and/or employers
may sue a third party, if they believe that another
party or a product was responsible for an employee's
accident.)
Be sure that your atrisan contractor
business is properly and adequately insured. Our agency
can help you get the most appropriate coverage for your
home business.
Any other questions? We'll be glad
to help. Call 860-283-0278
.
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