Contractors have a variety of business insurance needs that include workers’ compensation for employees, coverage for real estate, equipment coverage, general liability insurance coverage, commercial vehicle coverage, and bonding for jobs. These are specialized needs based on the unique nature of your business, and Kalita Agency of Watertown, CT, is here to help you get the right insurance for your contracting business, no matter what your specialty is. Below, they answer a few common questions about business insurance for contractors.

5 Common Questions About Business Insurance for Contractors

1. If I Am a Sole Proprietor With No Employees, Do I Need Workers’ Compensation Insurance?

In some states, a sole proprietor is allowed to ask for an exclusion from the need to have workers’ compensation insurance by filing a waiver of subrogation. However, some sole proprietors prefer to have this insurance coverage for protection in case they get injured on a job.

2. Are an Employee’s On-the-Job Injuries Covered by General Liability Insurance?

No, employee injuries are only covered by workers’ compensation insurance. That makes it crucial coverage for most contractors to have.

3. What Is an Additional Insured?

Construction projects may require a contractor to add other parties to their insurance coverage as a requirement of the job. An example of this might be having a subcontractor added to your general liability policy as an additional insured. 

4. What Is a Certificate of Insurance?

This is an official document issued by an insurance company for the contractor to use as proof of insurance when it is requested by third parties.

5. What Is the Meaning of an Indemnification Agreement?

An indemnification, or “hold harmless,” agreement transfers the risk of liability from one party to another. This agreement may require the party making the indemnification to defend the other against any claims or lawsuits brought against them in relation to the construction job they are working on for the contractor.

To learn more about the right business insurance for you, call Kalita Agency in Watertown at (860) 274-8882. You can also visit their website to learn more about their offerings.