Looking for Contractors Insurance in Missouri?
An introduction to Contractors Insurance
Mid-America Specialty Markets is your local Contractors Insurance expert! We insure many different types of contractors from Landscapers, Heating and Cooling, Electricians, Carpenters, Concrete Construction, Plumbers, Excavation Contractors, Interior Finish, Painters and many more!
Top Coverage Considerations for Independent Contractors Insurance
- General Liability: Construction related contractors will always need to secure a general liability insurance policy. General Liability Insurance provides coverage for bodily injury and property damage that you cause while working at your job site. Example, one of your workers drops a 2×4 and it lands on someone who is visiting the construction site, hits them in the head and causes injury. Your company will be responsible. Your General Liability policy will provide protection for you against law suits for such claims.
- Contractor Tools: Construction contractors generally have a great deal of money tied up in tools and small equipment needed in order to complete their type of work. Think about all the small tools you use on a daily basis. For a contractor most of their work tools will be stored in their job trailer. The job trailer is what a construction contractor will bring to the site where the work is being conducted. Often times these work or job trailers will be left at the job site until that specific job is completed at which time they will move their trailer to another job. What happens when some unknown comes by and over the weekend steals your job trailer with all your tools inside? The value of the tools that you have in your job trailer can add up in a hurry!! A word of caution. Do a quick inventory of your job trailer. Make a list and video of all the tools you have in your trailer and at your job site. Place a value on those tools and call our office!! It’s easy have $10,000, $25,000 and even $50,000 in tools in your job trailer just sitting there, waiting for someone to take them. So when it comes to protecting the tools you use to make your living reach out to our commercial team and let us properly insure those items! Let us protect your livelihood!
- Construction Equipment Coverage: For those contractors who have large construction equipment properly insuring that equipment is important. Excavation Contractors, Plumbers, Electrical Contractors and Concrete Construction Contractors, just to name a few, all have the potential to own and operate large construction equipment. This may include:
- Skid Steers
- Excavators (full size and mini)
- Front End Loaders
- Cherry Pickers
- Fork Lifts
- Concrete Pumper Trucks
- And a ton more!
- And one thing these items have in common is the cost they carry! Excavators can easily exceed $200,000, Dozers $150,000, Backhoes $150,000. So making sure you properly insure your contractors equipment is very important for any construction contractor. Make sure you reach out to our commercial team for help securing this valuable coverage for your business.
- Business Auto Coverage: How do you know if you need business auto insurance? That’s easy, visit this page on our blog. It’ll take you through the differences between personal auto insurance and business auto insurance. Just about every construction contractor we know has at least one work truck! We often find those trucks are not properly insured. Many small contractors will insure their work truck and trailer on their personal auto insurance policy. Sometimes this is ok and sometimes it is not! When you modify your work truck, add tool boxes or add ladder racks, when you put your business name on the side or if your work truck is over 10,000 lbs you need to talk to one of our commercial team members!! The last thing you want to happen is that at claim time find out you have no coverage under your personal auto policy. We can help you make the right decision when it comes to insuring your work truck.
- Workers Compensation Coverage: Most construction contractors or independent contractors will at sometime be required by a hiring contractor or project owner to provide proof that they carry workers compensation insurance. Visit our Workers Compensation page on this website to learn more about this required coverage. You’ll find this single insurance product may be the most expensive insurance product that a contractor will have to buy. It’s cost is dependent on the class of your business and the payroll of your employees. Carpentry contractors in the state of Missouri may be looking at $16-$19 per 100 of employee compensation. Roofing contractors may fall closer to $30 per 100 of employee compensation. You can also learn a great deal more about workers comp by visiting workcompconsultant.com. Keep in mind that regardless of the type of construction work you do, our agency can help get a handle on your workers compensation costs! Our experience in workers compensation is extensive and our company partners have a great appetite for a variety of construction classes at reduced costs!
- Commercial Property Coverage: Commercial property must be insured correctly. Do you own a shop? Or perhaps you rent a building where you have your shop and office. Do you store equipment, tools and more importantly stock and inventory? Or perhaps you have equipment in your shop that you use to produce products that you then install at one of your clients place of business or residence. Think cabinet shop! Or maybe you have a shop where you keep your tools and where you repair your excavation equipment. Is your shop on your private property and do you think you have it insured under your homeowners policy? You may be surprised to learn that under most circumstances, buildings used for business purposes will not be covered under your homeowners policy! If you have any of these types of property exposures in your contracting operations you should contact Mid America Specialty Markets. Reach out to one of those on our Commercial Team or a local agent in your town. We can help solve your commercial property problems!
- Builders Risk Coverage: If you are a residential or commercial builder you may need to secure builders risk insurance coverage for one of your projects. Builders risk provides very specific coverage for a construction project during its duration. For example if you are a home builder, you will need coverage on the dwelling as its being built. Residential builders risk will provide that coverage. It provides coverage for the structure throughout the construction phase and building materials while they are on the construction site but not yet installed. There are also many additional coverage considerations available through a builders risk policy. From the commercial construction side builders risk coverage works the same way, providing coverage on the structure while being built and building materials at the construction site but not yet installed. Builders risk coverage can also be used for remodel projects where you need to insure the existing structure and the remodel work. You can also insure just the remodel work. So you see, builders risk coverage can be tailored to meet multiple construction project needs!
- Errors and omissions: Contractors who provide consulting and advice, such as accountants, financial planners, interior designers and landscape architects, need to be concerned about liability risks due to losses a client may experience as a result of the contractor’s recommendations.
- Bodily injury and property damage: Contractors who work with heavy machinery and tools, such as plumbers, re-modelers and electricians, need to be concerned with mishaps due to hazards such as power tools, defective machinery and compressed gas.
- Product and liquor liabilities: Independent contractors who serve food and alcohol at functions need to be concerned with potential injuries and illnesses due to food and alcohol served.
- Medical and disability: As a contractor, you are most likely not on a group plan to cover your own injuries, which can leave you exposed to a loss of income risk if you become ill or injured.
Who Needs Contractors Insurance?
There are many types of independent contractors who all need independent contractors insurance and other coverage to match their specific risks. Some of the professionals that need contractors insurance include:
- Independent construction contractors
- Plumbers, carpenters, electricians, painters, concrete contractors, excavation contractors, interior finish, painters, cabinet makers and floor covering installers
- Repair people
- House and carpet cleaners
- Freelance writers, editors and graphic designers
- Independent hair stylists, and salon professionals
- Horse or dog trainers
Don’t Underestimate Your Risk Exposure
Getting the right independent contractors insurance in place can protect you from lawsuits, mishaps and third party property damage that can devastate your business.
Normally, you will need a few different categories of coverage for complete liability protection:
- General liability: The foundation of all contractors insurance coverage is a general liability policy. This coverage will provide two types of protection:
- Bodily injury: Provides coverage if you or someone you employ causes injury or death to a third party during the course of work. It provides for medical care for the injured person and covers your legal defense if you are sued for damages.
- Property damage: Provides coverage if you or one of your employees causes damage to property belonging to others. This includes the building or property you are working on or any third-party property.
- Completed operations/product: Provides coverage in case a project you finished has an issue or causes damage. It can also extend to any products you sell or distribute.
- Advertising personal injury: Covers the risk of damaging another’s reputation or causing a loss through slander, libel or false advertising claims.
- Contract liability: This covers you in a contract dispute. It is not always included in general liability coverage so verify that you carry this coverage with your insurer.
The specific independent contractors liability insurance coverage you need will be unique to your business. By working with a knowledgeable agent, you can ensure that you don’t have critical gaps in your contractors insurance coverage that could leave you exposed to expensive legal claims.
Do you need a Business Owners policy?
The contractors general liability coverages can often be bundled with a few other coverages to create a contractors insurance business owners policy, or BOP.
This serves two purposes. It expands the policy to cover risks that small business owners face, and also typically results in a discount on the cost of your insurance.
Normally, this coverage will make sense for you if you have employees. A small business is basically defined as a business that has up to 100 employees and generates about $5 million or less in annual revenues.
Some of the additional coverages that may typically be bundled with a BOP include:
- Property damage: This insurance covers your owned or rented property if it is damaged. This includes office buildings, storage facilities, warehouses, workshops, or garages. It does not cover commercial vehicles.
- Business income: This protects you from loss of income if your business is interrupted due to a covered loss. It usually covers income and operating expenses for up to 12 months.
- Commercial auto: Insures your cars, trucks, vans, specialized trucks or any vehicles used for business purposes.
Do You Need Workers Compensation Insurance?
As an independent contractor, you may or may not need to have workers compensation insurance. Workers Compensation regulations are mandated state by state. If you are in business for yourself, and you do not have employees, you are most likely not required to buy workers comp. However, in some states you need to purchase workers comp even if you don’t employ others.
If you are a contractor who employs other workers, your state will most likely require you to carry this insurance. This policy protects workers from job-related illness, injury or death. It will also reimburse workers for lost wages if they cannot go back to work. The benefit to you, as the employer, is that this coverage can help to prevent losses from employee lawsuits.
Should You Consider Professional Liability Coverage?
When you are looking for the right contractors insurance for your business, you will have many choices, including whether to buy professional liability insurance, also known as “errors and omission” insurance or “E & O.”
E & O is a liability policy that protects you if you make a mistake that causes a financial loss to a client. Similar to general liability, it will provide legal defense and claims settlements, if necessary.
You may want or need this coverage under the following circumstances:
- You provide professional advice in your line of work. This can include everything from recommending a particular type of plumbing or wiring to providing interior design services.
- You hire employees or subcontractors who provide any sort of advice or consulting services.
- Your state requires you to have E & O insurance due to the work you perform.
If you utilize subcontractors, it is a good idea to make certain they are insured with professional liability as well, as they may not be covered by your policy.
Our Locations Where You Can Buy Contractors Insurance
- Columbia, Missouri
- O’Fallon, Missouri
- Springfield, Missouri
- Lee’s Summit, Missouri
- Shawnee – Overland Park, Kansas
- Seneca, Missouri
- Clever, Missouri
- Neosho, Missouri
- Lamar, Missouri
- Carthage, Missouri
- On-Line – Commercial Team
How to get started on your quote
Looking for contractors insurance in Missouri? You’ve come to the right place! Hello, my name is Randy Sieberg. I’m the Director of Commercial Insurance and a member of our Commercial Team here at Mid America Specialty Markets. Let’s talk a bit about contractors and how we can meet their special insurance needs.
Most contractors will need to have in place insurance coverage for :
- General Liability
- Tools and Equipment
- Business Auto
- Workers Compensation
- And Commercial Umbrella
On this page of our website you’ll learn more details about each one of these different types of insurance coverage along with additional optional coverage for:
- Builders Risk
- Errors and Omissions
- And Bonds
For our smaller construction contractors you’ll find we make the whole process of securing a quote as easy as possible. Most of the time we’ll ask you to complete a simple questionnaire about your business operations, provide us with your claim history and from there we’ll be able to obtain competitive quotes for your construction business.
For larger construction contractors we’ll conduct our Risk Management Analysis and Exposure Evaluation to help gain a full understanding of your construction operations. We’ll review your current insurance program to identify positives and look for areas of improvement where we can implement more efficient coverage options. We’ll review your current workers compensation classifications, payroll assignment and EMR or experience modification rate, for accuracy and identification of areas of possible improvement. Needless to say, our large construction program is a very in depth analysis of your business operations.
So if you need competitive insurance coverage for your construction business reach out to one of our local agents or contact one of our Commercial Team members and we’ll secure quote options for your consideration.
Thank you for visiting our website!