Texas contractors use insurance products to protect their businesses. There are many options for Contractor Insurance in Austin TX to protect businesses from major losses. When looking to purchase contractor insurance products, a contractor needs to look at his or her unique situation to determine what level of coverage would make the most sense.
General Liability Insurance
As the name implies, general liability insurance protects a business from claims related to personal injury or property damage claims. Contractors performing work in Austin, Texas are required to maintain a minimum of $500,000 general liability insurance. Contractors may want to consider a higher limit if they believe there could be a very large claim. Any claims more than the liability insurance amount would need to be personally paid for by the contractor. That is a financial hit that few could withstand.
Workers Compensation Coverage
The State of Texas does not require a contractor to purchase worker’s compensation insurance. It is a good idea to purchase, however, especially for contractors who have employees working in physically demanding or dangerous situations. Having worker’s compensation coverage will protect employees against job-related illnesses, injuries, or even death. It can also provide lost wages for employees unable to return to work. Having workers compensation coverage protects your business from liability claims from injured employees.
Professional Liability Coverage
Certain types of contractors can benefit from professional liability insurance, also known as errors and omission insurance. This coverage protects a contractor who makes a mistake which causes a financial loss to a client. Certain policies can also cover claims related to faulty workmanship. Errors and omissions insurance is a good idea for contractors who provide any professional advice. This can include home-repair contractors who advice to homeowners, attorneys, accountants, and realtors can all benefit from this coverage.
Contractors in Texas purchase insurance products to protect their contracting businesses. Having a good understanding of the different insurance options is paramount in purchasing the correct bundle of packages for a particular business. Contract Perdue Insurance Group for help in understanding Contractor Insurance in Austin TX. They can analyze your business and recommend specific insurance products to protect your investment.