10 Risks Every Contractor Needs Coverage for

contractor risks

As a contractor, you face unique business risks. And that makes having the right insurance all the more important.

Standard insurance policies often include coverage for your building, your business personal property, the personal property of others in your care and most liability risks.

Yet there are other coverages worth considering that aren’t automatically included in your main policy. These “extras” are typically offered as endorsements—documents attached to an insurance policy that expand or restrict coverage. (In this example, they all expand coverage.)

Here are 10 risks that contractors should consider covering by endorsement:

  1. Accounts receivable becoming uncollectable after being damaged or destroyed by a covered cause of loss.
  2. Penalties you incur after a covered loss prevents you from fulfilling the terms of a contract.
  3. Employee dishonesty that results in theft of money, securities and/or property.
  4. Extra expenses you incur to continue operations while your property is being repaired or replaced after being damaged by a covered cause of loss.
  5. Damage or loss of an item you’re installing, transporting or temporarily storing for a customer.
  6. Not having enough business personal property insurance during your peak season.
  7. Not having your liability limits applied to additional sites without reducing the limits at the first site.
  8. Loss or damage to tools and equipment that are away from your premises.
  9. Unintentional damage you cause to property of others in your care, custody or control.
  10. The cost to reconstruct damaged or destroyed valuable papers and records.

Erie Insurance offers an affordable, bundled endorsement to help cover these risks.1 Learn more about it and how you can protect the business you worked so hard to build by contacting your local ERIE agent.

1Certain terms and limitations may apply. See individual policies for specific coverage details. Refer to ERIE’s disclaimer.

As a contractor, it's worth considering additional protection for your unique industry risks. /blog/contractor-risks Erie Insurance