Artisan Contractors Insurance FAQ. Artisan or casual contracting includes some of the more common and most needed servicing contractors, ranging from plumbers and electricians to chimney sweeps and landscapers.
Physical damage coverage for tools, supplies and equipment, both on and off the contractor's premises, is a concern.
Liability exposures at the premises of the contractor, and at the premises of the contractor's customer, must be properly addressed along with completed operations.
Commercial auto insurance is very important, as is workers compensation insurance protection for employees.
We wanted to provide a deeper dive into small business insurance to help our readers get a better understand of the commercial insurance policies they want and need with the Artisan Contractors Insurance FAQ.
Read the Artisan Contractors Insurance FAQ to learn what type of commercial insurance coverages are right for your contracting business - including liability, property, workers compensation and other specialty policies.
According to III, an artisan contractor, "includes many occupations that involve skilled work with tools at the customer's premises."
Artisan Contractors include - but are not limited to - the following types of businesses:
You can reference the Insurance Definitions, Dictionary And Glossary to better understand the commercial insurance policy terms and language used in our Small Business Insurance FAQs.
Following are some suggested commercial policies and coverages applicable for artisan contracting:
Package policies are the most convenient way to combine coverages. The commercial package policy (CPP) offers flexibility and choices that are appealing to the larger contractors.
However, the smaller contractors are often best served with an artisan contractor businessowners policy because it has been designed specifically for them. A key is that they only require liability coverages but offer property, inland marine and crime coverage options.
Types Of Artisan Contractors Package Policies:
Many contractors do not have the usual location-specific buildings and business personal property exposures. Their business property is more mobile and, therefore, better covered with inland marine coverage forms.
However, for those larger contractors that own buildings and/or maintain business inventory there are many coverage forms and choices available to them.
Types Of Property Coverages:
Most contractors' property exposure doesn't stay in one place. Instead it moves from the contractor's premises to various jobsites. The property may stay at the jobsite for a time or may just move with the contractor. Property in motion is best covered through an inland marine form.
The perils insured or causes of loss under an Inland marine coverage forms are generally equal to or better than the special cause of loss form that applies to property coverage with most providing earthquake and flood coverage. A contractor should periodically inventory all property to ensure it is all covered on the most appropriate form and that coverage is not duplicated.
Types Of Inland Marine Coverages:
A number of coverages are available under the commercial crime coverage form and policy. A contractor may need only one or two of the coverages because of limited inventory and little on-premises exposure.
When a contractor has employees, the most important crime coverage to consider is employee theft especially if those employees can order inventory, accept payments or disburse funds. If employees regularly work at client's premises, clients' property coverage could be an equally important coverage to buy.
Types Of Crime Coverages:
Artisan contractors must obtain permits before performing certain types of projects and often must be licensed in order to operate. Many municipalities require bonds to support the promises made to obtain such license or permit. In addition, contractors who perform work for government entities often are required to supply a variety of contract bonds. In a growing number of cases, even some private industry clients are requiring bonds that guarantee performance.
Types Of Surety Coverages:
If a contractor wants to begin or stay in business, liability coverage must be obtained for the premises or operations, off-site locations and products/completed operations exposures. These coverages may be included as a part of a businessowners policy (BOP) or purchased in a commercial general liability (CGL) policy.
Owners and contractors protective liability and railroad protective liability coverages may also be required in certain cases in order for a contractor to obtain a particular job.
Types Of Liability Coverages:
Artisan contractors may employ individuals who provide services that require errors or omissions coverage. Professional and errors and omissions claims are based on malpractice, errors or mistakes made in the performance of a variety of professional duties.
Because these errors, omissions and mistakes are excluded in the general liability policy, the insured must purchase separate professional liability coverage in order to have full insurance protection.
Types Of Errors And Omissions (E&O) Coverages:
Artisan contractors use their vehicles to get to and from their workplaces and jobsites. They also use vehicles to transport equipment and inventory to those locations. It is important to cover the liability of these vehicles for injury or damage they may cause, as well as to provide coverage for damage to the vehicles themselves.
Types Of Business Auto Coverages:
Employers are required to provide coverage for injuries sustained by their employees while on the job. Contractors must comply with these requirements but some try to avoid them by hiring subcontractors. These subcontractors may actually operate and qualify as employees. The relationship between a contractor and its subcontractors must be carefully evaluated in order to determine if workers compensation coverage is still needed.
Casual contractors working on or above navigable waters are subject to the Longshore and Harbor Workers Compensation Act and the policy must have the appropriate endorsement that reflects that situation.
Types Of Workers Comp Coverages:
Contractors have significant liability exposures because of the amount of driving they do and the number of client contacts that are made. In addition, there are contractual, subcontractor and completed operations exposures plus those from employers liability. Serious consideration should be made to enhance the primary insurance program with an umbrella or excess liability policy in order to provide sufficient coverage.
Types Of Excess Liability Coverages:
Many contractors are entrepreneurs who are receptive and open to new opportunities. They may become involved with international opportunities, financing options and other initiatives. And many are discovering the value of using a drone to assess a job in order to provide an accurate bid.
A contractor may need one or more of the following coverages, depending on their operations and opportunities.
Types Of Specialty Coverages:
There are many commercial insurance policies available for Artisan Contractors. To find out what types of coverage your business needs, speak to a professional insurance broker with experience in insuring artisan contracting.
Learn about the coverages available for specific industires with the Insurance FAQs below: