Contractors: Why You Want Commercial Insurance

If you are self-employed, you need the right amount of insurance, and also the right type of insurance to ensure you’re properly covered for your unique needs.
Contractors: Why you want Commercial Insurance | CM Connect Blog

Contractors: Why you want Commercial Insurance

Many people have asked us at Crystal Metz Insurance, what exactly is Commercial Insurance, how does it work and do I need it? 

We’ll be showcasing specific situations where you would need commercial coverage, and more importantly, why you want it.

If you are self-employed, you need the right amount of insurance, and also the right type of insurance to ensure you’re properly covered for your unique needs. 

Here’s an example of a self-employed contractor:
Contractors:  Why you want Commercial Insurance
THE SITUATION                          

Mike is a self-employed contractor. He is 35 years old, married with 2 kids, and his wife works part-time in the evenings when Mike is home. 


Contractors:  Why you want Commercial Insurance
THE INCIDENT

One day on the jobsite, the dry grass under Mike’s machine starts a fire. In a state of shock, Mike jumps out of the equipment, tripping and breaking his leg. The weather has been so hot and dry, all he can do is watch the fire spread as he calls for help. 


Contractors:  Why you want Commercial Insurance
THE DAMAGE 

Mike’s injury is worse than he thought and requires surgery. This takes a recovery time of four months where Mike cannot work and will not make any money, followed by 2 months of physiotherapy appointments and light duty work. Significant damage also occurred to the worksite. 


Contractors:  Why you want Commercial Insurance
THE INSURANCE

Luckily, Mike had two different types of overage just in case an unexpected and unfortunate incident like this were to occur. 


First, Mike made sure he had a Business Policy. This will pay to repair damage caused to the site through his liability coverage. It will also pay to replace the lost equipment. 


SInce contractors do not have loss of income coverage, Mike also made sure to have a Disability Policy which will provide him with disability income while he is unable to work. His disability loan insurance will also make payments directly into his bank account to cover important bills such as his mortgage payment, truck loan, business loan, or tools. 


Contractors:  Why you want Commercial Insurance
WHAT COULD HAVE HAPPENED (if he didn’t have Business and Disability insurance)

Without both Business and Disability insurance, Mike would have faced a significant loss of income. His work may be forced to find a new job, or work full-time while he recovers at home, and he would have been responsible to replace damaged machinery, or risk being sued if someone else had been hurt. 



Which type of insurance coverage do you need? 
We can make sure you have the right amount of insurance coverage for your specific situation and industry, no more, no less. In the unfortunate event that something were to happen, the proper insurance will ensure you won’t be adding a financial burden to you or your family.
Let the Crystal Metz Insurance team help advise you on what will work best for your business insurance needs. We are here to connect the dots for all your insurance needs.


Contractors:  Why you want Commercial Insurance