Don't expect your homeowners policy to give you coverage.

Many companies have excellent "artisan" insurance packages for the small to medium subcontractor. Ask your agent to show you different artisan packages so that you can choose a program that fits your needs. Coverages may be similar among artisan packages, but rating plans vary. Some companies charge rates based upon payroll, sales or number of employees. As your business grows, you will want to ask your agent to shop your coverage to see whether it is to your advantage to change from one rating formula to another.

If you are a general contractor, you will need to work with an agent who specializes in general contractors. Contact your local builders association. Many builders associations will sponsor programs or know of agents who specialize in general contractors.

You will need workers compensation coverage for any employee - even part timers. If you hire any subcontractors, understand that you may be responsible for any injuries to subcontractors or their employees while they work for you. Make sure that you have certificates of insurance from each of your subcontractors for workers compensation, general liability and automobile insurance. It is to your advantage if your subcontractors have liability limits of insurance at least equal to your own.

You may need commercial automobile insurance if you deliver anything or if your vehicle is larger than a car, van or small pickup or if the vehicle is owned by a corporation.

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