Depending on the exact nature and structure of your client’s business, you may be considering whether they need an excess liability insurance policy or excess liability in specific areas of coverage such as product or professional liability. As more and more people start small businesses and become self-employed as contractors, it’s increasingly important to differentiate between their different types and roles in their given sector. Artisan specialty contractor insurance will help you give them coverage that’s tailored to their business plan, even if your client isn’t quite sure what type of contractor they are.
What are the three main different types of contractors that you may have as clients?
- General contractors: A general contractor is what you probably have in mind when you hear the term ‘contractor’ and it’s probably what your client considers himself to be, as well. Contractors tend to have a wide variety of general skills and so, while they may be involved in projects that have elements of high liability, that need would be on a case-by-case basis more than as a general trend of their work.
- Artisan specialty contractors: Artisan contractors, on the other hand, have experience in a skilled trade; instead of focusing on something like construction as a whole, their business would focus on a smaller scope within construction such as plumbing or electricity. Roofing also tends to be handled by artisan contractors due to the high degree of technical knowledge and expertise required to construct or repair a solid roof. In these circumstances, having excess liability coverage is a good idea not on just a case-by-case basis but because almost every single job involves a high degree of liability and the chance for a claim due to alleged damages.
- Subcontractors: Either general contractors or artisan contractors can become subcontractors even though subcontracting with artisans is far more common. Subcontractors are a sort of third party that the actual entity hired to complete a job may contract with for a smaller portion of the job. For example, the contracted project manager for a housing development might hire an electrician or roofing expert as a subcontractor.
Artisan contractors might not refer to themselves as artisans, instead, choosing a more marketable word like ‘expert’ or the known professional title such as plumber or electrician. But if your client can be considered an artisan contractor and handles highly technical jobs, having excess liability coverage for the specific risks their job inherits can be critical for their business’s success and yours.
If you’d like to learn more about why Prime Insurance Company is a preferred provider of excess insurance coverage, please contact us. We’re here to help you and your clients find the right elements of additional coverage for their businesses’ needs.