As a general contractor in Pennsylvania, having the right insurance is crucial to keeping your business, employees, and clients safe and protected. The type of insurance you need is very dependent upon the size of your team, the type of projects you work on, and more. But there are a few types almost every contractor needs. Let’s get into it.
Always: General Liability Insurance
General Liability Insurance is a must-have for any contractor. It protects you against third-party claims of bodily injury, property damage, and personal injury (like libel or slander). Given the high-risk nature of construction sites, accidents involving clients, visitors, or passersby are always a possibility. This insurance covers medical expenses and legal fees if someone gets hurt on your job site. It also pays for damages to a client’s property, like if you accidentally break a window or damage a structure, and protects against claims of defamation.
Check Specific Requirements
Most construction contracts in PA require contractors to carry a certain amount of general liability insurance. This might look like $1 million per occurrence and $2 million aggregate, but it depends on the contract. Be sure to check your specific contract terms so you know you’re paying for enough coverage.
Be Prepared
You’re only truly ready for an emergency if you have your insurance info handy. So many small business owners buy the insurance they need to operate—and then forget about it. On one hand, that’s great to see. We’re happy your business is staying safe and avoiding accidents. But on the other hand, you want to be ready to make use of your insurance, should the need arise.
Have your certificates of insurance handy to show proof of coverage to clients and regulatory bodies, which can help speed up project approvals and build trust with your clients. Also, make sure your subcontractors have their own general liability insurance and name your company as an additional insured on their policies to cover all bases.
Keep Costs Where They Should Be
Keeping it at the ready also means your insurance premiums aren’t being pulled out of your account without some forethought. Have your needs changed in a way that could potentially save you money? Has your business outgrown the coverage you’re currently paying for? All of these are possibilities you want to keep up with. Reviewing your coverage regularly (even for just 5 minutes) can save you a lot of money in the long run.
Usually: Commercial Auto Insurance
Commercial Auto Insurance covers vehicles used for business purposes. General contractors often use vehicles to transport materials, tools, and employees to various job sites. Pennsylvania law requires all commercial vehicles to carry a certain amount of liability insurance, so make sure your coverage meets or exceeds these requirements. If your business uses multiple vehicles, consider a fleet insurance policy to streamline management and potentially reduce premiums.
Don’t Let Just Anybody Drive Company Cars
Put in place a thorough driver screening process to ensure that the employees operating company vehicles have clean driving records. This can help lower insurance costs and reduce the risk of accidents. Also, keeping up a regular maintenance schedule for the company vehicles does a lot to keep the team safe and insurance costs low.
Sometimes: Workers’ Compensation Insurance
In Pennsylvania, Workers’ Compensation Insurance is a legal requirement if you have employees. This coverage provides benefits to workers who get injured or sick from their jobs, making sure they get the medical care they need and compensation for lost wages. It covers medical expenses, partial wage replacement for those unable to work, rehab and
retraining services, and death benefits for dependents if an employee is fatally injured. So if you have employees, make sure you’re fully compliant with Pennsylvania’s workers’ compensation laws to avoid penalties and legal issues.
Many contractors operate with a team of subcontractors or work solo, so this insurance is often avoided.
Keep Your Team Safe
The best way to keep Workers’ Compensation Insurance affordable is to avoid accidents. Obviously, no one wants to get hurt. But negligence can sneak up on us in avoidable ways. Promote workplace safety through comprehensive safety programs, regular safety audits, and employee training. Develop return-to-work programs that help injured employees get back to work as soon as they’re able. This can reduce the time you’re paying out wage replacement benefits and improve employee morale. Stay involved in the claims process and work with your insurance carrier to ensure timely and accurate claims handling, which can help control costs and resolve claims efficiently.
Insurance for General Contractors in PA
For general contractors in Pennsylvania, having the right insurance coverage is essential for protecting your business, employees, and clients from the various risks associated with construction projects. But so many factors vary from business to business. Give us a quick call at The Kind Insurance to get an insurance plan tailored to your business. We only work with reputable insurers and don’t recommend policies that you don’t actually need. Get started today!