Specialty Contractors Insurance

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The Specialty Contractors Insurance Guide

Specialty Contractors Insurance

Specialty Contractors Insurance. This guide provides information on excess, surplus and specialty lines small business insurance policies and risks.

Here you can find basic descriptions of the specific industry risks or specialty coverage types available for Specialty Contractors Insurance.

For certain types of small businesses, particularly new ones - it is often very hard to know what types of commercial insurance is needed, what the risks are that should be covered - and where to find coverage.

We wanted to provide reference for specialty commercial insurance to help our readers get a better understanding of Specialty Contractors Insurance policies they might need to do business.

Learn about Specialty Contractors Insurance to better understand common risks, exposures and the types of commercial insurance coverage available to protect your small business and it's operations.

Specialty Contractors Insurance Types

Click on the links below to learn more about Specialty Contractors Insurance types and coverages:



What Type Of Insurance Do Asbestos Abatement Contractors Need?

At one time, many public buildings, offices, and school buildings used asbestos materials in their construction because of their ability to reduce the spread of fire. Those once-touted products have since been found to be extremely toxic. As buildings that contain asbestos are remodeled, remediated, or demolished, contractors must first remove or contain any asbestos material in them before starting any other construction activities. Liability insurance coverage on specialized asbestos abatement contractors is extremely difficult to place.


What Type Of Insurance Do Bridge, Tunnel, And Elevated Highway Construction Contractors Need?

Contractors working on bridges, tunnels, and elevated highways work under very dangerous conditions while operating extremely heavy and expensive equipment. These projects are long-term so stability of coverage is vital. Mistakes made at any stage of construction can be deadly and expensive.


What Is Builders Risk Insurance?

Builders risk coverage forms insure buildings and other structures that are under construction. They are available for a single structure or multiple structures. Premiums can be paid at inception or be based on a deposit premium and periodic reports of value accompanied by premium payments. Coverage is usually for "all risk" perils or causes of loss and may include earthquake, flood, and collapse. Endorsements are used to broaden, limit, or customize coverage as needed. Deductibles are required.


What Type Of Insurance Do Building Equipment Erection And Installation Contractors Need?

Contractors that install equipment in buildings may work on a jobsite for as little as a day or for more than a year, depending on the nature of the work and the equipment being installed. While they don't manufacture the equipment, they install it and must be certain that it is in proper working condition before the job is complete. The installation floater, general liability, and workers compensation exposures are extensive.


What Is Burglar, Fire Alarm and Safety Equipment Company Liability Insurance?

The insurance industry strongly encourages its clients to purchase a variety of safety equipment, but few insurance companies are willing to insure safety equipment providers. Manufacturers, distributors, and businesses that install and service fire extinguishers, burglar alarms, sprinkler systems, and ventilation hoods with extinguishing systems for restaurants often find that only specialty markets can arrange coverage for their unique exposures and needs.


What Type Of Insurance Do Carpentry Work Contractors Need?

Carpenters erect the structural portion of dwellings and commercial wood frame buildings. If their work is faulty or not done correctly, all work that follows is also faulty.


What Type Of Insurance Do Concrete Work Contractors Need?

Concrete contractors pour the foundations and basements that are the start of any building. A mistake in the concrete can result in a new building being torn down after cracks or faults begin to appear. Concrete work contractors also build sidewalks, driveways, and many other projects that involve concrete. The mix-in-transit concrete trucks are top heavy resulting in a significant automobile liability and physical damage exposure.


What Type Of Insurance Do Construction And Environmental Testing Laboratories Need?

Contractors, consultants, and engineers need the services of special testing laboratories to sample and analyze ground water, waste, waterways, air quality, soil, and hazardous waste. These laboratories may be independent contractors or may operate in connection with environmental consultants or engineering firms. Some labs are mobile and are transported to construction sites. Separate insurance programs are available for testing laboratories involved in acoustics and vibration, biological, chemical, construction materials, electrical, geotechnical, asbestos, mechanical, and thermal testing. Professional liability and pollution liability coverage is available.


What Is A Contractor Controlled Insurance Plan (CCIP) aka Contractor's Wrap-Up?

General contractors may purchase liability and workers compensation insurance for all operations on a specific construction project, including those performed by subcontractors. Many states have criteria for approving such programs and they must meet certain contract cost requirements. The use of wrap-ups brings all construction insurance costs and coverages into a single workers compensation policy and a single CGL policy, which can eliminate gaps in coverage and non-concurrency of limits and policy language.


What Type Of Insurance Do Contractors Design And Build Need?

The design and build concept of construction contracts consists of a contractor and architect under the construction firm's management being responsible for the project from its inception through the design process, during construction, and until it is completed. The construction firm may have its own design capability, own a subsidiary design firm, or hire an independent architect and engineering firm. One important feature of this coverage is professional liability for the construction firm that has both design and build functions.


What Is Contractors Equipment Insurance?

This inland marine coverage insures contractors' equipment on a scheduled or blanket basis. For many contractors, their major assets are equipment, such as cranes, power shovels, tractors, and bulldozers. Large items can be specifically scheduled, while a blanket limit may be used for smaller items. Tool coverage, including employee tools, can also be provided. Coverage is often based on all risk-type perils or special causes of loss and is tailored to suit the individual insured's needs. A deductible sufficient to eliminate smaller, petty pilferage losses is preferred. Special limitations on crane usage are common.


What Is Contractors Pollution Liability Insurance?

This coverage provides both sudden and gradual pollution coverage for contractors. This insurance is off-premises coverage at job sites where the contractor is working for others. It covers both third-party damages and cleanup costs.


What Type Of Insurance Do Crane And Rigging Contractors Need?

Crane operators and riggers are high-risk businesses. Huge bodily injury losses that could financially ruin a large operation if uninsured or inadequately insured are possible. Exposures also include damage to property, such as destruction of a building, bridge, or train track. There is also the consequential loss of use to utility customers if utility lines are damaged. High liability limits are necessary and commercial liability umbrellas should be used to provide additional limits. Crane and derrick contractors, rigging, and millwright contractors are eligible.


What Is Demolition Contractors Liability Insurance?

Demolition operations are extremely hazardous, especially in urban settings. The use of explosives and the ever-present danger of building collapse during demolition present significant liability exposures to the general public and to adjacent structures that are not being demolished.


What Type Of Insurance Do Electricians Need?

Electricians frequently work under extremely hazardous conditions. The type of equipment involved and the structures where they perform operations determine the degree of hazard. When a fire occurs, the electrical work and the electrician who did it are usually the first suspects. The workers compensation exposure is also significant, particularly for those working on commercial projects. These companies understand and write this class of business:


What Type Of Insurance Do Elevator Maintenance Contractors Need?

Elevator maintenance and repair contractors are difficult to insure because of the serious losses that may result from an elevator failure. Special programs are available that include commercial general liability and completed operations liability coverages. Excess liability coverage is also available. Property damage liability deductibles may be required.


What Are Environmental Contractor Bonds?

Bid and performance bonds for contractors engaged in pollution cleanup and other environmental work are available from specialty insurers. These bonds supplement the pollution liability, commercial general liability, and auto liability coverages available to these contractors. Surety limits are provided on a per-job basis and can be substantial.


What Type Of Insurance Do Environmental Remediation Contractors Need?

Environmental remediation contractors clean up contaminated properties. Their liability exposures include inadequate or incomplete remediation; spread of contaminated soil during remediation or excavation; atmospheric emissions from remediation activities; contamination of aquifers; rupture of underground utilities or pipelines; spills or leakage from contractors' tanks; mixing of incompatible materials/wastes that results in fire, explosion or release of hazardous vapors; and improper tank installation. General liability, pollution liability, and professional liability policies can be written on a blanket basis or on a specific project.


What Type Of Insurance Do Excavation Contractors Need?

Insurance for excavation contractors can be difficult to place because all excavation work is inherently dangerous. There are liability issues related to the creating of ground instability on the property when working along-side neighboring locations. There are significant workers compensation concerns when working at building sites to remove basements, pilings, and concrete piers that previously supported buildings that were demolished. There are also equipment concerns because of the potential of equipment turning over or being damaged, Coverages available include commercial general liability and completed operations liability. Coverage for underground, collapse, and explosion hazards is very important and is usually available for an additional premium charge. Contractors' equipment coverage is also difficult because of the potential for equipment to overturn.


What Type Of Insurance Do Fire Protection Industry Contractors Need?

These are service contractors that sell, service, install and repair fire protection and suppression systems such as sprinklers, extinguishers, fire extinguishing systems, grease cleaners, and wet chemical fire suppression. Package programs are available that cover general liability, products liability, and errors and omissions. Some also cover incidental alarm installation.


What Type Of Insurance Do Fireworks Displays Contractors Need?

The inherent danger that explosives present, coupled with the catastrophe exposure to large numbers of spectators over whom the sponsoring organization exercises little control results in this being a difficult coverage to place. Shopping centers, municipalities, and civic and fraternal organizations will arrange fireworks displays to attract the public and contract with a fireworks specialist. The contractor purchases specific insurance for each display. Small contractors are especially difficult to place because the receipts they generate do not support their paying a significant premium.


What Type Of Insurance Do Floor Laying And Other Floor Work Contractors Need?

Contractors that install floor coverings may be party to any lawsuit brought by an individual who slips and falls on the installed floor covering. Floor coverings must be installed so that the floor can be traversed without tripping. Environmental problems can arise from the adhesives Contractors finishing chemicals used. A serious problem to consider is the removal process for any existing asbestos-backed linoleum or tile. Installation floater, general liability, and workers compensation coverages are all important.


What Type Of Insurance Do Garage Door Installation Contractors Need?

Garage door installation is extremely dangerous because of the need to precisely attach and adjust the spring mechanism. An employee can be severely injured during the installation. The garage owner can sustain a significant bodily injury and/or property damage if the spring installation should release unexpectedly.


What Type Of Insurance Do General Contractors That Build Apartments And Condominiums Need?

General contractors that specialize in apartment and condominium building construction often perform the carpentry portion but subcontract out the remaining operations. This class of business is increasingly difficult to place, particularly in the West and Southeast, due to mold and construction defect claims.


What Type Of Insurance Do General Contractors That Build Industrial Buildings And Warehouses Need?

General contractors involved with industrial and warehousing operations must work closely with the building owners to develop plans for heavy equipment installations. These projects can be of a long-term duration and may depend on the dates the equipment is manufactured. Subcontractors perform most of the actual building and the general contractor supervises them. Some builders risk exposures can be significant.


What Type Of Insurance Do General Contractors That Build Nonresidential Buildings Need?

General contractors that construct other types of commercial buildings often specialize based on the project's size. Smaller projects may be strip shopping centers or retail-type buildings while others may specialize in high-rise office complexes. The exposures vary based on the scope of the project. However, most general contractors provide only jobsite supervision on work that subcontractors perform.


What Type Of Insurance Do Glass And Glazing Work Contractors Need?

Glass and glazing contractors face exposures based on the types of jobs handled and the work performed. Installing windows in high-rise buildings presents a much greater potential for both general liability and workers compensation losses than repairing or replacing automobile windshields. The vehicles these businesses use are specially designed to transport glass safely. Installation floater exposures can be substantial.


What Type Of Insurance Do Heavy Construction Contractors Need?

This class applies to commercial contractors not considered artisan contractors and not otherwise classified. Most have significant equipment values and workers compensation exposures, with liability exposures based on the type of work performed.


What Type Of Insurance Do Highway And Street Construction Contractors Need?

These contractors have serious workers compensation and liability exposures because they are involved with the public. In addition, many use specialized and expensive equipment to perform the necessary work. Insurance on long-term highway projects may be written in wrap-up programs.


What Type Of Insurance Do Homebuilders Need?

Homebuilders are general contractors that specialize in residential 1-4 family dwellings. Some have no employees and use only independent contractors while others employ framing crews and use independent contractors only as needed. Construction defects claims are a major concern that has caused many carriers to significantly restrict coverage for defects or eliminate defect coverage entirely. Other coverages most homebuilders need are property/inland marine, builders risk, employee benefits liability, crime, auto liability and physical damage, and umbrella liability. When homebuilders employ crews, workers compensation coverage is also needed.


What Are Installation Floaters?

High-valued installation floaters are written on extremely large projects that require the installation of large and/or elaborate and/or complex pieces of machinery and equipment. This work takes place at the customer's location and can last many months or even years. The owner usually does not accept the project until all required testing is completed successfully. The large sums of money invested in this machinery and equipment, the relative scarcity of such equipment and component parts, and the length of time required to complete the installation combine to make high-value installation floater insurance a specialty line few underwriters provide. This coverage is usually written on inland marine coverage forms.


What Type Of Insurance Do Land Improvement Contractors Need?

These contractors specialize in excavating, improving, and grading land sites to prepare them for development and eventual construction of buildings. Insurance programs for this class of business usually provide coverage for property and liability, automobiles, contractor's equipment, buildings, and contents. Umbrella coverage should be part of the program.


What Type Of Insurance Do Lead Paint Removal Contractors Need?

Lead additives were eliminated from paint used in residential and commercial applications in 1978. Many buildings painted before that date still have lead exposures because paint that chips exposes previous layers of paint. Lead paint removal contractors remove the lead paint so that it no longer poses a problem.


What Is Lead-Based Paint Renovation, Repair And Painting Insurance?

The Environmental Protection Agency (EPA) guidelines require contractors or landlords that renovate, repair, or paint structures built prior to 1978 to be certified. Any type of defined major activity must be performed within the EPA guidelines in order to prevent lead contamination. This coverage provides bodily injury and property damage caused by the lead contamination related to these renovation activities.


What Type Of Insurance Do Masonry, Stone Setting And Other Stonework Contractors Need?

These contractors finish building exteriors and also do interior work. The ones that do exterior work may do so at heights and this presents serious liability and workers compensation exposures and concerns.


What Type Of Insurance Do Material Handling Contractors Need?

This coverage is designed for contractors that have significant care, custody, and control exposures for property of others, such as crane, derrick, and dragline operators, rigging contractors, and millwrights. Insurance coverage forms and policies are available that provide commercial general liability coverage, including coverage for property of others in the insured's care, custody, and control for hoisting and rigging. Additional limits are available through umbrella liability as well as coverage for the insured's contractor's equipment.


What Is Owner Controlled Insurance Plan (OCIP) aka Owner's Wrap Up Insurance?

Building project owners may purchase liability and workers compensation insurance for all operations at their specific construction projects, including those performed by the general contractor and all subcontractors. Many states have stringent criteria for approving such programs and they must meet certain contract cost requirements. The use of wrap-ups brings all construction insurance costs and coverages into a single workers compensation policy and a single CGL policy, which can eliminate gaps in coverage and non-concurrency of limits and policy language.


What Is Owners And Contractors Protective Liability Insurance?

The OCP policy provides liability coverage for a named insured who is sued for injuries related to the actions of a contractor working on his or her behalf. The contractor purchases the coverage but the owner/contractor for whom the contractor works is the named insured. Coverage is limited to bodily injury Contractors property damage that results from operations of a contractor while working for the named insured. Coverage is limited to a specific project or contract and ends when the project is complete or the terms of the contract are fulfilled.


What Type Of Insurance Do Painting - Exterior Contractors Need?

The type of structure being painted and its location largely determines the loss potential for this class of business. Bridge painters must contend with traffic, wind, and working at heights. Commercial building painters must contend with traffic congestion and pedestrians. The type of paint used and exposure to its fumes are additional concerns. Paint overspray is always a concern but may not be insurable in every case.


What Type Of Insurance Do Painting - Interior And Paper Hanging Contractors Need?

These contractors work in residential and/or commercial settings and in both new and existing buildings. The type of paint and adhesives used and the amount of and height of scaffolding are important workers compensation concerns. Wallpaper costs can vary, especially if they are custom made, and can necessitate significant installation floater limits.


What Type Of Insurance Do Pier And Dock Contractors Need?

The water exposure is significant so these contractors must carry both land-based and ocean-based coverages. Coverages for injury to employees is especially difficult because the employer may be required to satisfy state workers compensation laws as well as federal laws such as the Jones Act and the Longshore and Harbor Workers Compensation Act. These contractors have significant general liability exposures but may also have protection and indemnity (P&I) exposures when they work on the water. In addition, many of them own watercraft from which they perform operations.


What Type Of Insurance Do Plastering, Drywall, Acoustical And Insulation Work Contractors Need?

These interior contractors perform most of their work in enclosed buildings or structures. The major exposure is workers compensation due to significant lung-related occupational diseases. Liability exposures are normally limited, but past problems have been associated with allergies and illnesses on the part of building occupants.


What Type Of Insurance Do Plumbing, Heating And Air Conditioning Contractors Need?

These contractors provide some of the basic services that nearly every building or structure needs. Their installation floater exposures are increasing because of the increase in the cost of metals. This also means extra security is often needed even after the installation is complete but before the entire job is finished and the contractor leaves the site. The contractor's size and the nature and scope of its projects determine market availability and the premium charged.


What Type Of Insurance Do Power And Pressure Washing Contractors Need?

Home and business exteriors require regular cleaning to maintain the property's appearance and to keep them from deteriorating. Pressure and power washers use high pressure streams of water to remove accumulated grime. These contractors' primary exposures are general liability, workers compensation, automobile and inland marine.


What Type Of Insurance Do Radon Mitigation Contractors Need?

This is professional liability coverage for contractors and laboratories that test for the presence of radon gas in the soil surrounding residential or other buildings. These contractors also provide services to remove or eliminate radon from the property.


What Type Of Insurance Do Residential Remodeling Contractors Need?

These contractors make one or more changes to residential properties. Some use their own crews to handle all the work. Others may subcontract some or all of the work to others. They supervise all work performed on behalf of the property owner.


What Type Of Insurance Do Roofing, Siding And Sheet Metal Work Contractors Need?

Most roofers are small contractors that tend to hire young and inexperienced persons who must work at elevated heights and/or on uneven surfaces. The use of hot tar on some roofs is an additional hazard. Workers compensation rates are high due to the nature of the activity and working at heights. These contractors also need liability coverage and bonds.


What Type Of Insurance Do Scaffolding Contractors Need?

Scaffolding risks present difficult liability exposures due to conducting operations at great heights. Workers compensation losses are a major concern. Liability exposures are due to tools and other objects dropped from scaffolds and onto other workers, pedestrians, or vehicles. In addition, incorrectly assembled scaffolding may collapse and injure workers and third parties. Loss control and carefully following safety rules is very important.


What Type Of Insurance Do Snow Removal Contractors Need?

There are different types of snow-removal contractors. Individuals add a blade to their pick-up or SUV and remove snow for neighbors and local businesses in order to provide service and obtain supplemental income. Other contractors provide the service as an extension of their landscaping or other seasonal type operations. These contractors may have employees and remove snow as a primary source of wintertime income. In either operation, the primary exposure is automobile liability and physical damage.


What Type Of Insurance Do Storage Tank Installation And Removal Contractors Need?

This is a special pollution liability policy available for contractors that remove, install, or maintain underground or aboveground petroleum storage tanks and systems. It insures against claims that involve sudden or non-sudden releases of petroleum products that cause environmental damage. Deductibles apply and are used.


What Type Of Insurance Do Structural Steel Erection Contractors Need?

Structural steel forms the skeleton of many commercial structures. Any errors in the construction process can violate the entire structure's structural integrity. Employees often work at heights. Cranes and other large, expensive contractor's equipment must be used. Substantial inland marine equipment schedules, significant liability exposures, and potential for serious workers compensation injuries make this a difficult class to insure.


What Are Surety Bonds For Small Contractors?

It can be difficult to find bond markets willing to write coverage on contractors just starting in business. A number of programs are available for contractors that have less than $500,000 in annual revenue. Coverage is available for performance, payment, and bid bonds for a variety of small and artisan contractors. Sureties examine the contractor's stability as well as its financial management. After a few jobs are completed successfully and without default, these risks improve substantially and the account can grow with the agent, who usually also writes the contractor's commercial general liability and commercial auto lines of business.


What Type Of Insurance Do Swimming Pool Contractors Need?

Backyard swimming pools are common and many home owners have permanent pools installed. Installation involves preparing the ground and installing concrete or wooden decks, piping, pumps, and filters. Other ancillary facilities in the pool area may be included, such as dressing rooms, showers, hot tubs, and slides. Using chemicals to purify the water or to eliminate mold or algae adds to the risk. Specialty contractors do the installation and maintenance. Liability exposures arise from swimmers who drown or are injured due to negligence in installation or maintenance work.


What Type Of Insurance Do Terrazzo, Tile, Marble And Mosaic Work Contractors Need?

These contractors work inside and outside both residences and businesses. Most work requires scaffolding which increases both liability and workers compensation exposures and loss potential. High installation floater limits may be needed due to the value of the materials being installed. Having expensive materials on hand increases the potential for theft losses.


What Type Of Insurance Do Utility Systems Construction Contractors Need?

Contractors that build and maintain water and sewer systems, oil and gas pipelines, and communications systems are in the utility systems construction business. This requires that they use specialized equipment in their work. Projects are usually large and some of them can last several years. The size and complexity of these contractors requires underwriting and claims specialists and risk managers. Some of these projects are written in wrap-up insurance programs.


What Type Of Insurance Do Water Well Contractors Need?

Water well contractors drill for water. However, they may also monitor wells and drill for soil samples. There are liability exposures from the initial on-site drilling activity as well as continuing existence hazards if they have monitoring responsibilities. Drilling rigs present a significant property exposure because of their values, the potential of equipment being lost in the well, and the difficulty in obtaining proper equipment valuation. These rigs are often in undeveloped areas which can result in significant over-the-road and off-road potential for overturn and vandalism.


What Type Of Insurance Do Welders Need?

Welders are subcontractors that use arc welding techniques to bring together two pieces of material. The material is actually melted in bringing the pieces together. Additional material may be added during the melting to cause the joint to be stronger than the pieces. An improper weld can cause the equipment Contractors a structure to rip apart causing significant property damage and/or bodily injury. Coverage is needed for the equipment including tanks of welding material and the liability including the completed operations exposure.


What Is Wrap-Up Insurance?

General contractors Contractors project owners may purchase liability and workers compensation insurance for all operations on a specific construction project, including those that subcontractors perform. Many states have criteria for approving such programs and they must meet certain contract cost requirements. The use of wrap-ups brings all construction insurance costs and coverages into a single workers compensation policy and a single CGL policy which can eliminate gaps in coverage and non-concurrency of limits and policy language.


Specialty Contractors Insurance - The Bottom Line

We hope that the Specialty Contractors Insurance helps you to better understand the some of the specialty small business commercial insurance policies available for your business. To find out what types of coverage your unique business needs, speak to a professional commercial broker with experience in insuring businesses like yours.

Specialty Small Business Insurance Guide By Industry, Risk Or Policy Type



Types Of Small Business Insurance - Requirements & Regulations

Perhaps you have the next great idea for a product or service that you know will appeal to your local area. If you've got a business, you've got risks. Unexpected events and lawsuits can wipe out a business quickly, wasting all the time and money you've invested.

Operating a business is challenging enough without having to worry about suffering a significant financial loss due to unforeseen and unplanned circumstances. Small business insurance can protect your company from some of the more common losses experienced by business owners, such as property damage, business interruption, theft, liability, and employee injury.

Purchasing the appropriate commercial insurance coverage can make the difference between going out of business after a loss or recovering with minimal business interruption and financial impairment to your company's operations.

Small Business Information

Insurance is so important to proper business function that both federal governments and state governments require companies to carry certain types. Thus, being properly insured also helps you protect your company by protecting it from government fines and penalties.

Small Business Insurance Information

In the business world, there are many risks faced by company's every day. The best way that business owners can protect themselves from these perils is by carrying the right insurance coverage.

The The National Association of Insurance Commissioners (NAIC) is the U.S. standard-setting and regulatory support organization. Through the NAIC, state insurance regulators establish standards and best practices, conduct peer review, and coordinate their regulatory oversight.

Commercial insurance is particularly important for small business owners, as they stand to lose a lot more. Should a situation arise - a lawsuit, property damage, theft, etc. - small business owners could end up facing serious financial turmoil.

According to the SBA, having the right insurance plan in place can help you avoid major pitfalls. Your business insurance should offer coverage for all of your assets. It should also include liability and casual coverage.

Types Of Small Business Insurance

Choosing the right type of coverage is absolutely vital. You've got plenty of options. Some you'll need. Some you won't. You should know what's available. Once you look over your options you'll need to conduct a thorough risk assessment. As you evaluate each type of insurance, ask yourself:

  • What type of business am I running?
  • What are common risks associated with this industry?
  • Does this type of insurance cover a situation that could feasibly arise during the normal course of doing business?
  • Does my state require me to carry this type of insurance?
  • Does my lender or do any of my investors require me to carry this type of policy?

A licensed insurance agent or broker in your state can help you determine what kinds of coverages are prudent for your business types. If you find one licensed to sell multiple policies from multiple companies (independent agents) that person can often help you get the best insurance rates, too. Following is some information on some of the most common small business insurance policies:

Business Insurance Policy Type What Is Covered?
General Liability InsuranceWhat is covered under commercial general liability insurance? It steps in to pay claims when you lose a lawsuit with an injured customer, employee, or vendor. The injury could be physical, or it could be a financial loss based on advertising practices.
Workers Compensation InsuranceWhat is covered under workers compensation insurance? This type of insurance protects a business and its owner(s) from claims by employees who suffer a work-related injury, illness or disease. Workers comp typically provides the injured employee with benefits to cover medical expenses, a portion of his/her lost wages, rehabilitation costs if applicable, and permanent partial or permanent total disability.
Product Liability InsuranceWhat is covered under product liability insurance? I pays an injured party's settlement or lawsuit claim arising from a defective product. These are usually caused by design defects, manufacturing defects, or a failure to provide adequate warning or instructions as to how to safely use the product.
Commercial Property InsuranceWhat is covered under business property insurance? General liability policies don't cover damages to your business property. That's what commercial property insurance is for. It protects all of the physical parts of your business: your building, your inventory, and your equipment, giving you the funds you need to replace them in the event of a disaster. If you work from home, you might consider a Home Based Business Insurance policy instead.
Business Owners Policy (BOP)What is covered under a business owners policy (BOP)? This is a policy designed for small, low-risk businesses. It simplifies the basic insurance purchase process by combining general liability policies with business income and commercial property insurance.
Commercial Auto InsuranceWhat is covered under business auto insurance? This type of insurance covers automobiles being used for business purposes. This could include a fleet of business-only vehicles or a single company car. In some cases it might cover your car or your employee's car while they're being used for business. These policies have much higher limits, ensuring you can cover your costs if one of these vehicles gets into an accident.
Commercial Umbrella PoliciesWhat is covered under commercial umbrella insurance? This type of policy is a sort of "gap" insurance. It covers your liability in the event that a court verdict or settlement exceeds your general liability policy limits.
Liquor Liability InsuranceWhat is covered under liquor liability insurance? It covers bodily injury or property damage caused by an intoxicated person who was served liquor by the policy holder.
Professional Liability (Errors & Omissions)What is covered under professional liability insurance? This type of business insurance is also known as malpractice oe E&O. It covers the damages that can arise from major mistakes, especially in high-stakes professions where mistakes can be devastating.
Surety BondWhat is covered under surety bonds? Bonding is a contract where one party, the SURETY (who assures the obligee that the principal can perform the task), guarantees the performance of certain obligations of a second party, the PRINCIPAL (the contractor or business who will perform the contractual obligation), to a third party, the OBLIGEE (the project owner who is the recipient of an obligation).


Who Needs General Liability Insurance? - Virtually every business. A single lawsuit or settlement could bankrupt your business five times over. You might also need this policy to win business. Many companies and government agencies won't do business with your company until you can produce proof that you've obtained one of these policies.

Business Insurance Required by Law
Small Business Commercial Insurance

If you have any employees most states will require you to carry worker's compensation and unemployment insurance. Some states require you to insure yourself even if you are the only employee working in the business.

Your insurance agent can help you check applicable state laws so you can bring your business into compliance.

Other Types Of Small Business Insurance

There are dozens of other, more specialized forms of small business insurance capable of covering specific problems and risks. These forms of insurance include:

  • Business Interruption Insurance
  • Commercial Flood Insurance
  • Contractor's Insurance
  • Cyber Liability
  • Data Breach
  • Directors and Officers
  • Employment Practices Liability
  • Environmental or Pollution Liability
  • Management Liability
  • Sexual Misconduct Liability

Whether you need any or all of these policies will depend on the results of your risk assessment. For example, you probably don't need an environmental or pollution policy if you're running an IT company out of a leased office, but you would need data breach and cyber liability policies to fully protect your business.

Also learn about small business insurance requirements for general liability, business property, commercial auto & workers compensation including small business commercial insurance costs. Call us (855) 767-7828.

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