The category of artisan contractors, also known as casual contractors, includes many occupations that involve skilled work with tools at the customer’s premises. Carpenters, plumbers, electricians, roofers and tree surgeons are some of them. Also included are diverse other skilled service providers, such as interior decorators, piano tuners and exterminators.
Special insurance needs of this group include coverage for equipment and tools that are often moved around and for the value of work done for a customer until it is finished.
For many artisan contractors, the most cost effective and efficient way to obtain property and liability coverage is with a Businessowners Policy (BOP) especially tailored to their needs. Although marketed under a variety of names, these policies will typically have provisions similar to the BOP's.
Given the possibility of a lawsuit should someone claim to have been harmed by your work, you will almost certainly need liability insurance.
If working as a subcontractor, your customer may require you to have Owners and Contractors Protective Liability (OCP) coverage. This protects either a property/businessowner or a general contractor from possible liability arising from the negligent acts of an independent contractor or subcontractor hired to perform work on behalf of the insured. The actual purchaser of the policy is the independent contractor or subcontractor, but the protection is for the benefit of the property/businessowner or general contractor for whom the work is being done.
The BOP covers real estate and other property that your business owns that is located at the described business premises. If your business rents or leases its premises, the BOP provides coverage for tenants' improvements and betterments. These are fixtures, alterations, installations or additions that you have put into the space that cannot legally be removed from the landlord’s premises.
Your biggest personal property loss exposures, however, may involve valuable machinery and equipment that moves around from job to job and is not covered by the standard property insurance. Such movable property is insured by contracts that insurers call "floaters."
An installer’s floater covers all kinds of machinery and equipment during transit, installation and testing at a customer’s premises. Even building materials may be covered, but the more usual coverage is for equipment or machinery that only contractors install, such as heating or air conditioning. The policy can be written to cover a single job or on a reporting form, meaning that you provide the insurer with information about each new contract you undertake.
A tools and equipment floater covers the insured property wherever it is used and may include such items as hand tools, power drills, hoisting machines and power pumps.
Business Owners Coverage |
Typical BOP - Basic Policy |
Typical BOP - Enhanced Policy |
| Business Income | 18 months - actual loss sustained | 18 months - actual loss sustained |
| Accounts Receivable | $5,000* | $10,000* |
| Arson Conviction Reward | $5,000 | $5,000 |
| Civil Authority | Up to 3 weeks | Up to 3 weeks |
| Collapse | Included in Property Limit | Included in Property Limit |
| Computer Coverage | Optional | $10,000* |
| Contractors Installation Coverage | $3,000* | $10,000 Blanket* |
| Contractors Tools and Equipment | $3,000* | $10,000 Blanket* |
| Debris Removal | 25% of Direct Physical Loss/Additional $10,000 if limit exhausted | 25% of Direct Physical Loss / Additional $10,000 if limit exhausted |
| Equipment Breakdown | Premier only | Included in Property Limit |
| Exterior Glass | Included in Property Limit | Included in Property Limit |
| Fire Department Service Charge | $1,000 | $1,000 |
| Fire Extinguisher Recharge | $2,500 | $2,500 |
| Increased Cost of Construction | $5,000 | $5,000 |
| Newly Acquired Buildings | $250,000 | $250,000 |
| Outdoor Property | $2,500 | $2,500 |
| Outdoor Signs | $2,500* | $5,000* |
| Personal Effects | $2,500 | $2,500 |
| Personal Property at Newly Acquired Locations | $100,000 | $100,000 |
| Personal Property Off Premises | $5,000 | $5,000 |
| Pollutant Cleanup | $10,000 | $10,000 |
| Preservation of Property | 30 days | 30 days |
| Replacement Cost | Included in Property Limit | Included in Property Limit |
| Valuable Papers and Records | $5,000 | $10,000 |
Crime Coverages |
Typical Basic Package Limits |
Typical Enhanced Policy Limits |
| Water Damage | Included in Property Limit | Included in Property Limit |
| Employee Dishonesty | Optional | $10,000* |
| Money and Securities-Inside/Outside | Optional | $10,000* |
| Forgery and Alteration | $2,500 | $2,500 |
| Money Orders & Counterfeit Paper Currency | $1,000 | $1,000 |
Liability Coverages |
Limits |
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| Premises/Operations and Products/Completed Operations |
$300,000, $500,000, $1M or $2M per occurrence
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| Premises/Operation Aggregate: |
2 x Liability and Medical Expense Occurrence Limit
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| Products/Completed Aggregate: |
2 x Liability and Medical Expense Occurrence Limit
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| Personal Injury |
Included
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| Advertising Injury |
Included
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| Contractual Liability |
Included
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| Employees As Additional Insured |
Included
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| Tenants Liability |
$100,000*
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| Medical Payments |
$5,000 per person/$25,000 per occurrence
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| Newly Acquired Organizations |
90 Days
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*Higher Limits available
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Let the Steve Heald Insurance Agency, Inc. help you understand and protect all of the risks you run and all of the perils your business faces. We will do this with a well thought out and executed business insurance policy designed just for Finish Capentry Contractors.