The Key to Protecting a Craftsman Contractor Business and Managing Risk

Craftsman contractors include skilled workers such as electricians or carpenters with specialized knowledge who can handle specific aspects of construction projects and perform many duties, such as balancing changing priorities, meeting demanding deadlines, and completing projects safely. Craftsman contractors include skilled workers such as electricians or carpenters with specialized knowledge who can handle specific aspects of construction projects and perform many duties, such as balancing changing priorities, meeting demanding deadlines, and completing projects safely. (Photo: gmcgill/Adobe Stock)

With the well-documented home improvement boom of the past few years and the projected increase in construction projects reported by United General Contractors of America, the expertise of craftsman contractors continues to be in demand.

Overall employment of construction workers is projected to grow 7 percent from 2020 to 2030, according to the U.S. Bureau of Labor Statistics. These include artisan contractors.

Craftsman Contractor – Broad classification of a skilled worker, such as an electrician or carpenter, with specialized knowledge that can handle specific aspects of a construction project, allowing the general contractor to focus on the overall project – performing many duties such as balancing changing priorities, meeting Meet demanding deadlines and complete projects safely.

For a craftsman contractor, an unexpected event such as a ladder tipping over at a client’s premises or equipment being stolen can be a devastating and costly setback that threatens to jeopardize the flourishing of their business.

Here are some key considerations for craftsman contractors to help them protect their business, employees, and property:

get proper insurance

One of the most important factors in helping protect your hard-earned business is personalized insurance coverage for your business’ unique needs such as operations, special tools and equipment, liability exposure, and commercial vehicles. Talking to an experienced insurance agent in your area can help you understand your coverage options so you can make coverage choices to protect your business.

Preventing Employee Workplace Accidents

While workplace accidents can happen even when precautions are taken, make sure you have a workers’ compensation policy to help cover the financial costs associated with certain employees being injured and ill in the course of their work. Employers’ liability insurance—sometimes included in workers’ compensation policies and sometimes sold separately, depending on the state—is designed to help employers cover some of the additional costs of an employee’s work-related injury or illness that the business owner may have to cover responsibility.

To help prevent work-related accidents and injuries to employees at their source, consider:

  • Implement accident prevention and loss control plans.
  • Require employees to attend training on job safety and document their attendance.
  • Regular safety inspections include checking tools, equipment, machinery and vehicles to ensure they are in good condition.
  • Provide personal protective equipment (PPE) for your employees.

Protective Tools and Equipment

Typically, business personal property insurance is limited to specifically designated locations, which means that in the event of an accidental loss or theft of your business equipment, it may not be covered if it happens outside of the locations covered by the policy. Since tools and equipment are frequently transported to and from different job locations, Contractors should consider coverage options that are not limited to designated locations.

Some of the coverages you may want to consider include contractor’s tool and equipment coverage, which covers more than the intended location, and contractor’s installation coverage, which covers materials you will install at the job site or storage location.

To help prevent device theft or misplacement, consider:

  • Maintain a list of equipment needed for each job site and review the list before leaving the site. There are digital tracking systems that simplify the process.
  • Lock or secure high-value equipment when not in use.
  • Paint or sculpt your tools to help prevent confusion.

Escort for commercial vehicles

Your business tools are another important part of your company that can affect your ability to fulfill your job responsibilities. To protect your investment in your vehicle, consider contacting your local experienced insurance agent to review your commercial auto policy coverage to help ensure you have the coverage you need.

To help prepare for the unexpected, you may want to ask yourself – while your vehicle is in the shop for a period of time – whether you have another vehicle that you can use to keep your business running, or do you need Rental cars. When determining the appropriate coverage limit for your commercial auto policy, you may also want to consider the value of any special equipment you own—whether you wrap your truck with your company logo, does your pickup have a toolbox or special Racks to tow ladders? These all increase the value of your business vehicle.

To help keep your business vehicle out of the repair shop, consider:

  • Carry out regular car maintenance.
  • Hire an experienced driver with a clean driving record to operate your vehicle.
  • Implement a safe driving program.

Notify your agent of any new employees authorized to operate your vehicle so your agent can update the list of drivers on your commercial auto policy. Claims made by an unregistered driver driving your commercial vehicle could affect your insurance premiums.

Keep in mind the scope of responsibility

Clients may claim that your work caused damage to their property, even if you were hired through a general contractor. Customers may claim that you are responsible for flooding caused by improperly installed plumbing fittings, a ruptured condensate line from a central air conditioning system, or a sprinkler system installed too close to a building. These claims can be costly, which is why you may want to have liability insurance for your business.

Invest in your protection – for the benefit of your business and your customers

As a craftsman contractor, you invest a lot of time and resources into becoming an expert in your craft and building your business. Protecting your business with a well-established and comprehensive insurance plan can often help you rebuild your business should the unexpected strike. Additionally, you can improve your professional credibility with clients (whether they are general contractors or individuals) by letting them know that you care enough about your business to invest in a purchase that will help protect them, your employees, and your personal insurance policy. Business.

So whether you’re an electrician, plumber or painter, craftsman contractors across the country must find ways to protect their livelihoods. Professional skills often come with specialized insurance needs.

John McGowan is Head of Business Insurance Underwriting for Farmers Insurance.


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