Maryland Contractor Insurance
If you own a small business in Maryland, you’re not alone, since this state features 546,917 small businesses in various industries. In particular, 54,595 or about 10 percent of the small businesses in this state are in the construction field. Though the gross domestic product of the USA grew by 2.2 percent in 2013, this state’s real gross state product stayed constant. (Source: BEA). But unemployment in Maryland did drop from 6.4 percent to 6.0 percent, which is good news for this state. (Source: BLS). If you want to improve your situation even more as the owner of a construction company in Maryland, take a look at what Maryland contractor insurance includes.
Maryland Contractors Need The Following Insurance
Coverage for Third Party (GL): Being at a construction site means you have the chance of injuring yourself, especially if you are not wearing a hardhat or other safety gear. If a guest is ever injured on one of your sites, you need to have general liability coverage to pay for any necessary doctor or hospital visits. But general liability coverage does not stop there. It can also pay for any repairs to the personal property, such as cars, of visitors. So if someone hits a pothole in the parking lot of your construction site or office, the general liability portion of your Maryland contractor insurance policy will pay to repair the vehicle.
Tools & Equipment Coverage (BOP): Your Maryland contractor insurance policy should include a BOP. More specifically, it should include tools & equipment coverage in case your ladder, drill, or any other equipment is ever damaged, lost, or stolen. Whether you are renting the tools you use or own them all, you deserve to be able to replace them immediately when necessary. Tools & equipment coverage will meet that need.
Employee Coverage (WC): While 41,048 construction firms in Maryland do not employ anyone, 13,547 employ up to nearly 500 people. If your firm falls into the latter category, you need to add workers compensation to your Maryland contractor insurance policy. This coverage can pay for the medical treatment, missed income, and legal fines that may be a consequence of a work-related injury or illness.
Business Vehicle Insurance: Whether you drive all around Maryland or mostly stick to one city, you need business vehicle insurance if you ever drive for business. You need this even if you have great personal auto insurance, since that type of coverage does not apply to any collisions that you or your employees might cause while you are driving for yourconstruction company.
Bond: If you want the benefits that come with guaranteeing your services, you need to add a surety bond to your Maryland contractor insurance coverage. This way, if you do not meet all the terms of the contract for your next construction project, your surety bond will kick in and cover any fines that you owe. Surety bonds are not only encouraged in this industry, but they are also often required, which is why your Maryland contractor insurance is not complete without one.