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Contractors: How to Get 4 Common Business Risks Covered

The success of your business depends on hard work and ingenuity. Contractors insurance helps protect the effort and money you’ve invested in your business if there ever were a disaster. But because businesses are so diverse, you should consider a variety of optional coverages too. These extras are purchased and added to your business insurance policy as endorsements. Here’s how to cover four common contractor risks with endorsements:

  1. Contractor tool/equipment coverageYou may transport your tools to different job sites and store the tools in an enclosed trailer. If those tools were stolen, they would be expensive to replace. Tool coverage is designed to cover your gear, like portable powered and non-powered hand tools, from most common risks, like theft.
  2. Builders installation coverageOn the way to a job, you’re involved in an auto accident, and the kitchen cabinets that you planned to deliver for the remodeling project are damaged or destroyed. Installation coverage helps protect the materials, supplies and fixtures while they are in transit to a job site where they are to be installed by you or at your direction.
  3. Contractors Errors and OmissionsYou not only install but also design plumbing, HVAC or electrical systems for new construction projects. With this type of design-build work, you take on more responsibility and risks.For instance, the electrical system in a commercial office building that you designed and installed has to be rewired because the breakers keep tripping. It turns out that the wiring you used and recommended was insufficient to handle the electrical load. Contractor’s Errors and Omissions covers damages that insured is legally obligated to pay as a result of a negligent act, error or omission, including wiring. (Talk to an insurance advisor for more information. Not all classes of contractors are eligible for this coverage.)
  4. Employment practices liabilityThese days, hiring, firing and day-to-day employee management can be risky business. You’d like to think that your employees would never dream of filing a claim or suit against you or your business for discrimination, wrongful termination, harassment or sexual harassment. Unfortunately, it does happen. Responding to claims or suits like these will require time and money.

With Employment Practices Liability Coverage, you will not have to face an employment claim on your own. It can help protect you against liability damages and cover defense costs.  (With Erie Insurance, it’s available for purchase on select policies. Ask an agent for more details.)

Your business needs protection provided by a company and insurance advisor that you can trust. You can count on Erie Insurance and our agents to help protect the business that means so much to you. As an ERIE customer, you also have access to risk control tools and servicesto help you identify and reduce common business risks. Talk to an Erie Insurance agent to learn more.

ERIE® insurance products and services are provided by one or more of the following insurers: Erie Insurance Exchange, Erie Insurance Company, Erie Insurance Property & Casualty Company, Flagship City Insurance Company and Erie Family Life Insurance Company (home offices: Erie, Pennsylvania) or Erie Insurance Company of New York (home office: Rochester, New York).  The companies within the Erie Insurance Group are not licensed to operate in all states. Refer to the company licensure and states of operation information.

The insurance products and rates, if applicable, described in this blog are in effect as of July 2022 and may be changed at any time. 

Insurance products are subject to terms, conditions and exclusions not described in this blog. The policy contains the specific details of the coverages, terms, conditions and exclusions. 

The insurance products and services described in this blog are not offered in all states.  ERIE life insurance and annuity products are not available in New York.  ERIE Medicare supplement products are not available in the District of Columbia or New York.  ERIE long term care products are not available in the District of Columbia and New York. 

Eligibility will be determined at the time of application based upon applicable underwriting guidelines and rules in effect at that time.

Your ERIE agent can offer you practical guidance and answer questions you may have before you buy.