« Business Insurance
small construction business needs several of the same insurance
coverages as any other business, as well as other types of insurance
specific to your industry. If possible, use an insurance agent who
has experience with your type of business and who works with insurance
companies that specialize in construction risks. Your agent may
be able to find policies that package property and liability coverages
in one policy specifically to meet the needs of small construction
You may need property insurance to cover the real
property your company owns and the personal property used in the
business, such as office furnishings and computers. 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 standard property insurance. Such movable property
is insured by contracts insurers call floaters.
An installers floater covers all kinds of
machinery and equipment during transit, installation and testing
at the purchasers 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 contractors equipment floater insures
any type of movable equipment not meant to move on public highways.
This includes such things as cranes, cement mixers, engines or power
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.
While under construction, a building has an ever-increasing
value as more of it is completed. To assure the building is covered
relative to its value at the time of a loss, there is a special
type of policy, known as builders risk insurance. With this policy,
if a tornado destroys the building when it is half finished, the
policy (if it is for replacement value) covers one-half of the value
the building would have had if completed. If a tornado wipes out
the building when it is three-fourths finished, the policy covers
three-fourths of the completed value. Alternatively, you can report
an actual amount for value completed to the insurance company each
month and that is the amount of coverage should a loss occur that
Since there is always a possibility that someone
will file a lawsuit against you claiming to have been harmed by
your work, you will almost certainly need liability insurance.
You may want to require your subcontractors to
have Owners and Contractors Protective Liability coverage (OCP).
This coverage 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/businessowner 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 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.
Should you be driving your personal truck 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
Insurance Information Institute.
WORKERS COMPENSATION INSURANCE read
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
Be sure that your in-home 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