Planning And Protecting Your Contracting Business

Apr 8, 2020, 4:29 PM

Spring is often a very busy time for contractors — customers are ready to make changes to their homes or even completely overhaul a room. This spring, of course, what contractors are allowed to do is limited in many places. While they can’t always get to work on construction projects, this unexpected downtime is an opportunity for a contracting company owner to review the condition of their own contracting business, including their business insurance coverage. 

Contractors coverage is one of our specialties here at Hastings Mutual. Our foundational coverage for contractors is called Select Contractors. This coverage applies to more than two dozen different types of contractors, from appliance installation to water well drilling. Our audience is small to mid-size businesses of 50 or fewer full-time employees and less than $15 million in gross receipts. 

You can expand your coverage beyond Select Contractors if you need more insurance for your business. Talk to your local independent insurance agent if you’re not sure about your options.  

• Contractors Plus: This builds on the coverage available with a Select Contractors policy to offer more — larger amounts of coverage and expanded offerings like protection for tools and equipment as well as property during the time the contracting business is working on it.
• Contractors E&O: “Errors and omissions” is the coverage you need if there’s a mistake or something is accidentally left out of a project. This coverage applies to errors, omissions, and defects related to work as a contractor or to products installed by covered employees.

There are a lot of risks for a contractor on any project. We recommend developing safety plans for each worksite, using a written and easy-to-follow series of steps for handling situations like:

• Communication between team members
  
• Electrical safety
  
• Equipment use
  
• Hazardous material handling
  
• Ladders
  
• Personal protective equipment
  
• Signage
  
• Visitor guidelines

Here’s an example of the steps the U.S. Occupational Safety and Health Administration recommends for safety on and near ladders. 

1. Use the correct ladder for the task — the appropriate height with secure footing.
   
2. Inspect the ladder before setting it up or climbing it. Look for damage like broken rungs or missing safety devices and greasy or slick areas that could contribute to a fall.
   
3. Make sure the ladder can support the weight it is expected to carry, including people on the ladder as well as their tools.
   
4. When the task is complete, make the ladder as compact as possible and store it away from high-traffic areas.

Workplace safety is easy to overlook or take for granted while you’re busy designing a project, coordinating schedules, and managing employees. The protection you get from Hastings Mutual Select Contractors, Contractors Plus, and Contractors E&O policies can help make running your business a little easier.

The Mutual Understanding blog and Hastings Mutual videos are made available for educational purposes only. The information referred to is not an official company statement, corporate policy, or offer of coverage. Refer to your insurance policy for specific coverage. There is no representation as to the accuracy or completeness of any information found by following any link on this site. Please contact your local independent insurance agent with further questions and for more details on any insurance policy-related information you read here.

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