As a contractor, you understand the importance of protecting your business from unexpected events. That’s why Dormon & Reynolds Insurance offers comprehensive insurance solutions tailored to your contracting needs. Our team of experienced professionals can help you determine the right coverage options for your business, so you can have peace of mind and focus on what you do best.
Business Owner’s Policy (BOP)
A Business Owner’s Policy (BOP) is a comprehensive insurance package designed specifically for small and medium-sized businesses. This policy combines general liability and property insurance coverage into one convenient package, providing protection for a range of risks commonly faced by contractors. A lot of the coverage is automatically included as part of the policy.
BOP policies typically include coverage for:
- Liability for resulting damage arising from your work – bodily injury or property damage
- Property Coverage
- Equipment
- Business interruption
At Dormon & Reynolds Insurance, we understand that each contracting business is unique. That’s why we offer customizable BOP policies to fit your specific needs.
Tailored Protection Policy
A Tailored Protection Policy (TPP) provides many of the same coverages that a BOP offers but allows the customer to tailor the policy to their specific needs. For example, if a contractor works from their home and has no office space but has equipment that they want covered then they could choose a TPP over a BOP. A TPP may be a better fit since there is no need for property coverage that comes with a BOP.
The difference in a TPP versus a BOP is similar to ordering fast food. If you order fast food and choose a combo then you will get everything in the combo even if you don’t want part of it. This is similar to a BOP. If you choose not to order a combo then you have the freedom to order only what you want/need. This example is similar to a TPP.
Typical coverage options under a TPP
Liability
Property
Inland Marine
Commercial Umbrella Policy
A Commercial Umbrella policy provides additional liability coverage on top of your existing insurance policies. This policy is designed to protect your business from catastrophic losses that could threaten your financial stability.
In general, a Commercial Umbrella policy provides additional liability coverage over:
- General Liability
- Employer’s Liability
- Commercial Auto Liability
At Dormon & Reynolds Insurance, we recommend that contractors consider a Commercial Umbrella policy to protect their business from potentially devastating lawsuits.
Policies You May Need
- General Liability Insurance: Protects your business from liability claims resulting from your work that cause bodily injury or property damage.
- Workers’ Compensation Insurance: Covers Employer’s Liability, medical expenses, and lost wages if an employee is injured on the job.
- Commercial Auto Insurance: Provides coverage for vehicles and any permanently attached equipment used for business purposes. Vehicles could be us for transporting equipment and materials to job sites or it could be used for commuting.
- Property Coverage: Covers property that you own that stays at a designated location. (desk, computers, furniture…)
- Inland Marine (Tools & Equipment Insurance): Provides coverage property that does not stay at one location and often moves locations. This provides coverage for items that are lost or damaged while being covered. (Bulldozer, lawnmower, leaf blowers, and more…)
- Cyber Liability Insurance: Contractors often use multiple digital devices to communicate, save information, and to complete their job. Sometimes cyber-attacks go through a contractor’s device to attack a different business.
Policies You May Not Need
- Flood Insurance: If your business is not located in a flood zone, you may not need this coverage.
- Earthquake Insurance: If you’re not located in an earthquake-prone area, you may not need this coverage.
Helpful Tips
- Review your insurance coverage regularly to ensure it still meets your business needs.
- Update your payroll/sales for your liability and work comp as your business grows. This will help you avoid headaches like an increase premium from an audit.
- Work with an experienced insurance agent who understands the unique needs of contractors.
- Keep accurate records of your equipment and tools to ensure they are properly covered in the event of a loss.
- If you use any kind of advertising for your business on any vehicle then it would be wise to have Commercial Auto coverage even if it is your personal vehicle.
Contact Dormon & Reynolds Insurance
Protect your contracting business with the right insurance coverage. Contact Dormon & Reynolds Insurance today to learn more about our comprehensive insurance solutions for contractors in Alabama.