Artisan and General Contractors play critical roles in the building industry. Keep reading to learn more about the differences between the two positions, potential risks, and insurance needs.
General Contractors are typically responsible for overseeing big picture projects, including renovations, expansions, and new construction projects. In addition, they’re often accountable for managing sub-contractors, including artisans, handling the completion schedules, equipment and labor, working conditions, communications between the client and contractors, and more.
Artisan Contractors, sometimes referred to as trade contractors, play an essential role in the building and construction industries. They fall into the category of specialized workers and are instrumental in making indoor and outdoor spaces functional through various trades and services. For example, Artisan Contractors may include tree surgeons, roofers, carpenters, plumbers, electricians, landscapers, HVAC specialists, and painters.
Insurance coverage for Artisan and General Contractors
Contractors are vulnerable to risks and claims that can negatively impact their business, making it essential to prepare for the unexpected. Artisan Contractors, in particular, are exposed to a unique variety of risks due to their specialized trades.
Insurance coverage protects General and Artisan Contractors and their clients in recovering losses and damages in an accident or incident. Here are a three reasons for artisan and general contractors to acquire Liability Insurance coverage:
- To protect themselves and their business. Insurance coverage helps contractors and their clients recover losses and damages related to an incident or injury. If a contractor is sued and held liable for bodily injury, damage to a client’s property, or more, their policies can cover legal fees and associated damages. Failure to secure coverage could leave contractors responsible for paying legal fees and damages out of pocket.
- To meet their client’s requirements. Some clients may require that their contractor is insured before hiring them. Without adequate coverage in place, a contractor’s client could be held responsible for accidents or incidents caused by the contractor.
- To satisfy legal requirements. Independent contracts are legally required to have coverage, such as General Liability Insurance, in some industries, including construction.
There are several types of insurance for contractors to consider including but not limited to:
- Contractors Equipment. For contractors, tools and equipment are an important asset to their business and craft. Contractors Equipment Insurance provides coverage for damages to machinery, tools, and equipment.
- Inland Marine. Specifically designed to cover machinery, tools, and equipment used off premises, Inland Marine Insurance provides protection for items such as cranes and bulldozers. Coverage extends to rental expense reimbursement and applied items that are owned and leased/rented.
- General Liability. General Liability offers the most comprehensive coverage and covers costs related to bodily injury, property damage, and personal injury. This includes the cost of care, restitution for death resulting from injury, and the loss of services. General Liability coverage also extends to damages or the loss of property resulting from their products or services, advertising injury, and defamation.
- Owners and Contractor’s Protective Liability (OCP). For clients or businesses that require contractors to have this insurance coverage, OCP protects the Owner from any liabilities resulting from the contractor’s negligence during the hours of construction. Should bodily injury or property damage occur due to ongoing project operations, OCP provides coverage in conjunction with General Liability policies.
Protecting businesses and their clients is a top priority. Quaker Special Risk has an in-depth understanding of the insurance industry and the coverage options available to General Contractors and Artisan Contractors. Our team is prepared to help find the best coverage to meet the unique needs of your clients’ businesses. Contact us to learn more.