To keep your commercial property in pristine condition, you probably hire independent property maintenance contractors. They’re self-employed and take care of everything from building repair to basic remodeling.
Why Your Independent Contractors Need Insurance
Your company may carry insurance for employees, but independent contractors are responsible for their own coverage. These policies protect them if their actions cause property damage or bodily injury, and they can help prevent your business from being held liable.
Before you hire anyone, inspect the contractor’s insurance policies and ask for proof of coverage.
Insurance Coverage for Independent Contractors
Ask potential independent property maintenance contractors to show proof of several types of business insurance.
- Bodily injury: Covers medical payments if a contractor’s action, tools, or machinery cause an injury on the job site.
- Property damage: Pays for damage to your property caused by the contractor.
- Completed operations: Covers costs if a later accident or damage is caused by work the contractor completed.
- Errors and omissions: Protects against losses from a contractor’s negligent advice or recommendations and may cover legal fees.
- Medical and disability: Pays for treatment when a self-employed contractor suffers an illness, injury, or disability that requires medical attention.
- Contractors’ tools and equipment: Covers tools and equipment if they are damaged, lost, or stolen on the job site, in storage, or from a vehicle.
- Commercial vehicle: Ensures contractors’ vehicles are insured for accidents and hit-and-run losses.
- Contract liability: Helps address disputes when a contractor cannot meet contractual obligations.
- Advertising personal injury: Covers claims such as slander, libel, or false advertising arising from a contractor’s promotional materials.
Update Your Insurance Coverage
In addition to verifying contractors’ policies, review and update your own insurance. You may need additional or different coverage if your business could be held responsible for contractors’ actions.
For examples of contractor-focused policies, see Janitorial Service Independent Contractors Insurance and Non-Standard Specialty Trade Contractors Mono-line Property Insurance to learn more about how specific trades are covered.
The self-employed property maintenance contractors you hire should have adequate insurance coverage; verify their policies before you hire someone to work on your commercial property. If you need help reviewing options, talk to an agent.
Frequently Asked Questions
What proof of insurance should I ask a contractor to provide?
Ask for a current certificate of insurance that names the contractor’s coverage types and limits, and confirm effective dates and any exclusions.
Should my business be listed on the contractor’s policy?
Request that your business be added as an additional insured when appropriate, especially for liability coverage tied to work on your property.
What if a contractor is uninsured and causes damage?
If a contractor lacks insurance and causes damage or injury, your business may be exposed to liability, so always verify coverage before work begins.
Are a contractor’s tools and equipment typically covered by their policy?
Tools and equipment are often covered under a specific policy; confirm the contractor has this coverage for on-site, storage, and in-vehicle losses.