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Numerous occupations that require skilled work with tools at the customer’s premises are included in the category of artisan contractors, which is also known as casual contractors.
Some of them include roofers, electricians, plumbers, and tree surgeons. Other skilled service providers like interior decorators, piano tuners, and exterminators are also included.
This group has special insurance needs, such as coverage for the value of work done for a customer until it is finished and for tools and equipment that are frequently moved.
A Business owners Policy (BOP) that is specifically tailored to the needs of many artisan contractors is the most cost-effective and efficient method of obtaining property and liability coverage. Despite being sold under a variety of names, these policies will typically include BOP-like provisions.
The BOP covers your company’s real estate and other property at the above-mentioned business premises. The BOP covers tenants’ improvements and betterments if your business rents or leases its premises.
These are things you’ve added to the space that you can’t legally take out of the landlord’s property, such as fixtures, alterations, installations, or additions.
However, valuable machinery and equipment that moves from job to job and is not covered by standard property insurance may be your biggest personal property loss exposure.
Contracts that insurers refer to as “floaters” are used to insure such movable property.
All kinds of machinery and equipment are covered by an installer’s floater during transit, installation, and testing at a customer’s location.
Even building materials may be covered, but equipment or machinery that is only installed by contractors, like HVAC systems, is usually covered.
The policy can be written to cover just one job or it can be written on a reporting form, which means you have to tell the insurance company about every new contract you sign.
The insured property is covered by a tools and equipment floater, which can include power drills, hoisting machines, hand tools, and power pumps wherever they are used.
You will almost certainly require liability insurance due to the possibility of a lawsuit if someone claims they were harmed by your work.
Your customer may require you to have Owners and Contractors Protective Liability (OCP) insurance if you work as a subcontractor.
This shields a general contractor or property/business owner from potential liability for the careless actions of an independent contractor or subcontractor hired to do work for the insured.
The independent contractor or subcontractor is the actual buyer of the policy, but the protection is for the property/business owner or general contractor whose work is being done.
Your personal auto policy probably covers some of your truck, van, or other vehicle’s business use. However, if the vehicle in question is primarily used for business purposes, coverage from a personal auto policy is highly unlikely to be provided. It won’t give inclusion to any vehicle possessed by a business. You must have a business auto policy for those vehicles.
An injured person could bring a personal injury lawsuit against you if you are driving a truck that you own for business purposes and get into an accident for which you are responsible.
Is there enough coverage in your personal auto policy to cover all of the damages? If not, your company may face legal action. If you use your personal vehicle for business, you should make sure that the limits are high enough to protect your company. You should talk to your insurance agent about this.
When an employer is required to offer workers’ compensation insurance, the rules in each state vary. Check with your state’s department of workers’ compensation to see if you are required to offer workers’ compensation insurance if you have three or more employees.
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