What Does a Typical Contractors Insurance Policy Cover?
Contractors insurance generally has three parts to it: a schedule to cover you, a schedule to cover the company or person to which you're contracted, and a schedule to cover any member of the public affected directly by your work as a contractor. In each of the categories, there should be a full protection option available from your provider against accidental damage caused to equipment and property and full liability protection covering medical, legal, and compensation costs.
What Is Typically Not Covered By Contractors Insurance?
Contractor insurance generally does not cover negligent acts or errors that are deliberate, nor will they provide extended coverage if you demonstrate a pattern of consistent negligent behavior. Other than those two major exclusions, contractors insurance is typically a very comprehensive safety net.
Additional Insurance Products In This Area
Contractors insurance is largely made up of public liability and professional indemnity elements. It also covers equipment and property to a large degree. If you want extra coverage in these areas, as you know the amount of business you will turnover in a year is high, then you can apply for separate add-ons to protect yourself and your clients to a greater degree.
Additional Coverage for a Contractors Insurance Policy
As contractors' work may be used years after they completed the project, contractors insurance may only come into play many years after a contract is finished. Contractors insurance can ensure you are still covered for liability after you retire, in case of any subsequent legal action. This may take the form of a "run-off" insurance policy or an extension of the liability clause to your contractors insurance.