Contractors Insurance Delaware

Contractors Insurance Delaware

delaware contractors insurance

The following article discusses the different types of Delaware contractors insurance. It also covers general liability and workers’ compensation insurance. In addition to general liability insurance, contractors must obtain Directors and officers and Advertising personal injury coverage. In addition to these basic types of insurance, independent contractors need specific insurance to protect themselves from liability claims resulting from their work. Before starting a project, it is imperative to understand what each type of coverage means for you. Once you understand the details, you can decide on the best plan for your company.

General liability insurance

Whether your business is a sole proprietor or employs employees, Delaware requires businesses to obtain Workers Compensation Insurance. This type of insurance pays for medical expenses for employees in the event of an accident or illness. You may also need additional coverage if you own a truck or use it for your business. Lastly, Delaware requires businesses to carry automobile insurance. This type of policy is not mandatory for sole proprietors and business owners without employees, but it may be the best option for your company if you own commercial property.

Workers’ compensation insurance

The cost of workers’ compensation insurance for Delaware contractors depends on several factors. It costs more for high-risk occupations and industries, and the number of employees will affect the overall premium. The Office of Workers’ Compensation administers and enforces state laws on workers’ compensation. In addition, each class code is assigned a base rate. If a business has two or more employees, the rate for the entire policy will be higher than that of a small business.

Directors and officers insurance

A recently passed Senate Bill clarifies the role of captive insurance companies in providing D&O liability insurance. The purpose of the bill is to provide protection to directors and officers of Delaware contractors against lawsuits that are not covered by the corporation’s insurance policy. This law also permits creative collaboration between the insurance carrier and insured. Delaware contractors should consider purchasing such insurance. Here are some options to consider:

Advertising personal injury coverage

If your business has been operating for any length of time, you should be aware that Delaware contractors insurance includes advertising personal injury coverage. This coverage is intended to protect you from the consequences of libel suits and other forms of intentional torts. For example, if an air compressor manufacturer advertises a high PSI, if a customer is injured and sues, the business would not be covered. Similarly, personal injury coverage will not cover any injuries caused by false advertising.

Completed product/operations coverage

A basic concept of contractors’ liability insurance is a product and completed operations coverage. These insurance policies protect businesses from the costs of a lawsuit for personal injury or property damage caused by their work. This type of coverage is essential for most manufacturers as damage may occur long after the work is complete. Although no business can guarantee the safety of its products, this insurance protects them from the costs of claims related to their work. For this reason, product/operations coverage is a crucial part of Delaware contractors’ insurance.

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