4 Important Insurance Coverages Every Contractor Should Consider

4 Important Insurance Coverages Every Contractor Should Consider

You’ve built your business on hard work and devotion to your craft. Contractors insurance helps protect all of the blood, sweat and tears (and money!) you’ve invested into your business should an accident occur.

Your contracting business is not one in the same – which is why you should consider adding several optional coverages to your Business Insurance Policy. These extras can be purchased and added to your Business Insurance Policy as endorsements:

1. Contractors’ equipment/small tool floater

If you own and use equipment or tools on a daily basis to conduct your work, you’ll likely need insurance coverage for them as well. Many of the powered and non-powered tools you use are expensive to replace. Contractors’ Equipment Coverage is designed to cover your equipment from some of the most common risks, like theft.

2. Contractors Errors and Omissions

As a contractor, your customers rely on you to complete their project accurately and with quality work. Despite implementing the best risk management practices and having highly skilled employees on your team, mistakes can happen.

For example, your installer mistakenly installs the incorrect floor on the job site. All incorrect flooring must be removed and replaced with the correct materials.

Contractors E&O coverage can cover the cost of the installation and the flooring replacement less the deductible, saving the contractor $10,000 out of pocket.

Contractors E&O coverage provides you with the protection you need to ensure that losses involving errors and omissions don’t have an overwhelming impact on the finances and reputation of your business.

* Ask your Rockford Mutual Insurance agent for details, not all classes of contractors are eligible for this coverage.

3. Builders Risk Coverage

Builders Risk Insurance provides coverage for property damage to buildings during new construction and renovation projects, including the materials, fixtures and equipment. There is also an option to cover additional soft costs should property damage cause a delay in the completion of your project.

4. Installation Floater Coverage

This coverage will help to protect materials, supplies and fixtures which will become a permanent part of your project. Coverage is provided while the property is at your jobsite waiting to be installed by you or your employees. Limited coverage is also available for property in transit to your jobsite.


You know that a lot depends on trust and following through – with Rockford Mutual and your independent insurance agent, you can count on quality insurance coverage and top-notch service when you need it most.

*Disclaimer: This article is for informational purposes only and does not identify/describe coverage for any individual policy. All policyholders should reference their individual policy for coverage details.

Protect your business and your employees, with Rockford Mutual. Find an independent agent near you:

Get a Quote

Amy Casey
Social Media & Communications Specialist
Amy joined Rockford Mutual in January of 2017 with an Associates Degree in Marketing. Amy has a great understanding of insurance in general as she has obtained her Associate in General Insurance designation.