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Insure your people. Insure your future.

Prevention should be your first line of defense against workplace accidents. But even the best plans by the most vigilant companies can’t reduce injuries to zero. 

Especially when it comes to the construction business. When accidents happen, and they will, insurance is your second line of defense. Do you have coverage? Is it an adequate amount? Has your policy grown with you or lagged behind? Are you covered for any new developments in your business?

Answering these questions is imperative to your long-term success.


By insuring your people, yourself, and your business you will be ensuring your future.


Ensuring the wellness of everyone against workplace accidents should be your top priority. Even the best plans by the most vigilant and experienced companies can't reduce injuries to zero. Construction businesses or any other contracting business, in
particular, require extra care when it comes to ensuring the safety of their workers. In the contracting industry, when accidents happen, and they will, insurance will be everyone's best shielding friend.

So, in order to make sure you and your contracting company are on the right track, ask yourself the following questions: Am I really an independent contractor or am I just an employee? do I need coverage as an independent contractor? If yes, what kind of coverage do I need? what about contractors’ insurance? what does it cover? how do I get insurance as an independent contractor? do I need to show proof that I have insurance? and finally ask yourself whether you are covered for any new developments in your business. Knowing the answers to these questions is imperative to your long-
term success.

What makes an independent contractor different from an employee?


An independent contractor might be hired and paid for one project or service in specific. Once that has been completed, they might not have other work with the company unless they are re-contracted for a different project. In other words, there are no other attachments between the contractors and the person who hired them after they successfully complete the required job. Employees, on the other hand, are hired to work permanently for an undefined time and are paid regularly. Moreover, most of the time, independent contractors can have flexible schedules as long as their project is finished by the agreed deadline. The employees, however, might have a set schedule which is imposed by their employers. Finally, unlike the case for employees’ payments, the independent contractors are not taken taxes out of their pay, so they are responsible for filing taxes on their own at the tax season filing date.


What is the difference between an independent contractor and a general contractor?

A new company might be looking to hire some people to fix different sections of their new office building, for example, changing floors and placing new windows. However, this business might want to avoid dealing with several different independent contractors directly, so they might find a general contractor. The general contractor will then be in charge of providing all the subcontractors needed in order to complete all the repair.


As a contractor, what type of insurance should you have?

Depending on different contractors' specific situations, there are some insurances that they should consider. Contractors that have other people working under their supervision, for example, should consider carrying workers' compensation insurance.
This insurance will economically safeguard the contractor in the situation where these workers seriously hurt themselves on the job. The contractor should also carry general liability insurance. For example, if a construction company gets contracted to carry out some specific repairment jobs, they might want to be covered in the case one of its employees or subcontractors damages the property they are working on. In this case, general liability insurance would help to cover the repairments needed or even cover the legal fees involved in the process. If contractors need to drive to different job sites or have other employees who usually require business transportation to get to different places, they will probably need commercial auto insurance. Most commercial auto insurances will economically cover you as a contractor as well as your employees in case of injuries or losses resulting from an accident on the road. Depending on your type of coverage, commercial auto insurance might also help protect your vehicle in the situation where your work equipment gets stolen from it or even in the case someone purposely breaks the vehicle.


What is covered under contractor's insurance?

The contractor's insurance is usually assembled as a bundle to help cover a contractor's most important necessities. The arranged coverage will depend on the insurance company you chose. However, three essential things covered by contractors' insurance are commercial general liability, the contractor's business property, and the work tools.

This means that if you are a contractor and get this insurance, you will be safe from both damages you and your team cause to a client's building but also insured against any destruction and damages that your own building suffers. With contractor's insurance, you will also be economically reimbursed in a situation where any equipment you use to work gets stolen. Most importantly, Contractors' insurance would help cover any hospital bills or even the legal expenses for a situation where you or any people working with you cause injury to others while working.


How can an independent contractor get insurance?

Independent contractors that generally work on shorter contract projects throughout the year would personally contact an insurance company and get advice on the best coverage for their line of work. However, when some contractors get hired to carry out longer projects, they can also consult with their clients if they can add independent contractors under their own existing insurance. If you are a lucky contractor, they might be willing to do it. However, most of the time, this will depend on the length and complexity of the project.

What is contractor proof of insurance?

Proof of insurance is basically a paper stating the different coverages (and their extent) that the contractor has. This insurance proof will also display data such as the start date and the expiration date of the coverages. If you are an independent contractor, it is crucial to provide this certificate to your clients since it will assure them that you are serious about the job safety and its hazards.


What are some benefits in maintaining your insurance up to date?

If you are working as a contractor, you will want to make sure you and your business property are protected from general mistakes, injuries, and disasters at all times.

Maintaining your insurance up to date will ensure that you and your business property are always in the safe zone. Working with un-updated insurance is like jumping from an airplane with no backup parachute. You will not be 100% covered. For example, you want to make sure to update your insurance about a 20,000-dollar machinery you recently bought for your business. If you fail to update them about this new purchase, they might not give you coverage if a sudden incident destroys it. Moreover, if you do not update this machinery to your insurance as soon as you purchase it, it might be harder to get coverage for it later.

TL;DR

By insuring your people, yourself, and your business you will be ensuring your future.


Construction businesses or any other contracting business, in particular, require extra care when it comes to ensuring the safety of their workers and business. In the contracting industry, when accidents happen, and they will, insurance will be everyone's
best shielding friend.

A contractor's insurance is usually assembled as a bundle to help cover a contractor's most important necessities. Three essential things covered by contractors' insurance are commercial general liability, the contractor's business property, and the work tools.
If you are a contractor and get this insurance, you will be safe from both damages you and your team cause to a client's building but also insured against any destruction and damages that your own building suffers. This will also cover your job equipment and any hospital bills or even the legal expenses for a situation where you or any people working with you cause injury to others while working.

Independent contractors that generally work on shorter contract projects throughout the year would personally contact an insurance company and get advice on the best coverage for their line of work. When some contractors get hired to carry out longer projects, they can also consult with their clients if they can add them under their own existing insurance. However, most of the time, as an independent contractor you will get more chances to land a project when you show and prove your clients you already possess an insurance. Presenting your clients with a proof of insurance will assure them that you are serious about the job safety and its hazards.


Finally, if you are working as a contractor, you will want to make sure you and your business property are protected from general mistakes, injuries, and disasters at all times. Working with un-updated insurance is like jumping from an airplane with no
backup parachute. You will not be 100% covered. So, keep in mind that by maintaining your insurance up to date you will ensure that you and your business property are always in the safe zone.

Surety AssociationThe Surety Association of Canada (SAC) is the national trade advocacy association that represents the interests of the surety industry across Canada. Its members consist of primary surety firms, surety reinsurers, surety/insurance brokers, and other organizations that provide related and complementary services to the surety industry

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