Apr 11, 2019

Why Do Artisan Contractors Need Their Own Coverage?

Working as an independent contractor comes with its own benefits, like being in charge of a project without the hassle of being micro-managed. But it also comes with the downside of being financially responsible for all the finances, including handling financials within a claim or lawsuit made by a third party.

Without the right protection, an artisan contractor could see their solo operation hit a big stop sign after just one liability claim. Getting the right artisan contractor insurance will help to keep an independent business operating by avoiding costly claims and drawn out litigation processes. Here are some reasons why an artisan contractor needs the right coverage.

Keep Contracts Coming

Landing new projects and steady clientele are the lifeblood of operations for an artisan contractor. This means everything for their financial stability, so not having proof of the right insurance coverage could mean the difference between having work and not due to trust and accountability. Business owners will want to see proof of general liability insurance and workers’ compensation coverage before they take on an independent contractor.

Damage and Injury

No matter the project, there’s always the risk of an accident or injury. From landscapers to night shift security guards, commercial general liability insurance to pay damages resulting in bodily injury or property damage is the safeguard needed to continue operations. Workers compensation policies should cover medical payments for individuals injured due to artisan contractor business operations, no matter who’s at fault.

Insuring Business Vehicles

Accidents and injuries aren’t just prone to happen on a job site—they can also happen while on the road. Independent contractors have to haul stuff from here to there, so shouldn’t coverage also include this element? Yes, it should.

Commercial auto insurance is an important piece of business insurance for contractors as it protects the 1099 contactor and the hiring entity in the event of an accident.

Covering Property

An artisan contractor can also choose to pick up a Business Owners Policy (BOP) to get the most out of their business insurance. This kind of coverage bundles everything together such as general liability and property insurance. If a natural disaster happens, or fire, theft or vandalism (something that continues to be relevant on worksites), property insurance usually covers a building and equipment. Policies can pay out cash value or replacement cost.

About Tangram Insurance Services

Located across the Golden Gate Bridge, just outside of San Francisco, Tangram is a full-service Managing General Underwriter and Program Manager offering specialty programs. We focus on industry-relevant coverage, competitive pricing, and practical business and risk management solutions for your clients. Since we are not all things to all people, we make sure to create outstanding custom-built solutions that matter to those businesses, and the brokers who serve those industries. Contact us at (888) 744-9810.