Understanding the Insurance Needs of Specialty Trade Contractors

All businesses should acquire adequate insurance portfolios to protect their finances. Without suitable coverage, even the most responsible and diligent companies could have their operations derailed and their futures jeopardized by a single incident. The need for robust insurance is clear given the many inherent risks and exposures that specialty trade contractors must manage daily—often while also working in fast-paced environments.
Workers setting up bleachers

What Is a Specialty Trade Contractor?

Specialty trade contractors make up a key subsector of the construction industry. These businesses generally specialize in specific activities involved in the process of constructing a building, such as the following:

Preparing sites
Pouring concrete
Painting
Plumbing
Electrical work

Specialty trade contractors are not responsible for entire projects but are usually subcontracted for additions, alterations, maintenance and repairs by general contractors or operative builders. Property owners may also contact specialty trade contractors directly. Most duties of a specialty trade contractor are conducted at the construction site, although some may also maintain shops where certain tasks, such as prefabrication, are performed.

What Types of Insurance Are Needed by Specialty Trade Contractors?

Although the specific coverage needs of specialty trade contractors may vary significantly, several coverages may be necessary for most. In general, an adequate insurance portfolio should include the following:

General liability insurance—This type of insurance can protect you from financial losses if a third party, such as a client, guest or passerby, suffers bodily injury or property damage, and you are responsible.
Tools and equipment insurance—This coverage can help pay for repairing or replacing your business’s equipment if lost, damaged or stolen.
Workers’ compensation insurance—If an employee is injured on the job or develops a work-related illness, this coverage can help pay for losses and expenses, including medical care, lost wages, disability benefits and legal costs.
Commercial property insurance—This coverage can provide financial assistance for losses involving your business’s property, including structures, inventory, fencing, landscaping and furniture.
Professional liability insurance—This type of insurance, also known as errors and omissions insurance, can insulate your company from damages if sued for improper or substandard products or services.
Commercial auto insurance—This coverage can protect your business from losses and damages arising from incidents involving your vehicles.

Get the Right Coverage

The work conducted by specialty trade contractors often exposes them to risks that could lead to significant losses and damages. The use of heavy machinery and the inherent hazards of most construction sites requires vigilance to keep employees, colleagues and other parties safe. Furthermore, these businesses bear the responsibility of delivering good products and services on time and in accordance with contractual obligations.

We’re here to help. For over 15 years, the experts at Morehead Agency have proudly helped specialty trade contractors in the Lee’s Summit, Blue Springs, Raymore, Grain Valley, Independence and Greenwood areas understand and address their insurance needs. We will work with you to protect your finances and future. Contact us today to get started.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.

Understanding the Insurance Needs of Specialty Trade Contractors

No Comments