Artisan Contractors are those skilled workers who perform only one type of job, and are specialized or trained in their craft quality. Tradesman like
Artisan Contractors are those skilled workers who perform only one type of job, and are specialized or trained in their craft quality. Tradesman like plumber, carpenter, electrician, painter, or any other skilled worker qualifies as artisan contractor. These contractors are entitled to a special type of insurance, called artisan contractor’s insurance, which is made especially for them.
Defining Artisan Contract Insurance:
Special insurance is designed to cater the needs of these small business owners. It broadly offers liability coverage to small companies at low rates. As described in the definition, this insurance does not cover an artisan’s supplies, work vehicles or offices; but it essentially covers the damages caused due to workers’ errors.
Why do you need it?
A brutal fact is that there are always chances of things going horribly wrong. Unfortunately, mistakes could happen anywhere and by anyone, but when they happen at someone’s home or office place, especially when you are creating, installing or repairing things, then it could easily lead to catastrophic end of your business if it is not insured properly. Going case by case, there could be chances of people getting physically hurt by your work, which only ends up in you paying their medical bills/claims. There could also be chances of you working on project with a large group of artisans. In such cases, if any artisan makes a mistake, then the whole group is held liable for the failures/damages. So, artisan contract insurance wouldn’t just protect you from your lapses but also from the faults of others.
Important types of policies:
• Commercial Liability policy: A broad policy which pays when you are found legally liable for property damage or bodily injury due to business operations. Since, its a broad policy, it has several exclusions which can be covered only by taking other types of insurance. Superior insurance schemes have built-in enhancement policies like covering personal injury and employees.
• Workers Compensation Insurance: This is an umbrella insurance for statutory liability of businesses to pay for staff’s medical bills and lost wages due to job related injuries and sickness. For this type of insurance, it’s better to over-estimate than to under-estimate.
• Business Automobile Insurance: This policy covers commercial vehicles used specifically for business purposes. To avail this insurance businesses should ensure that business vehicles are being used only for business purposes and not for private use.
To compliment the above stated policies, artisans can available several other policies for additional covers like:
• Commercial property insurance for insuring garages/warehouses used for making or storing tools, equipments, hardwares etc.
• Employee dishonesty insurance to cover the loss of theft by an employee.
• Inexpensive equipments like computers, outdoor property, stationery, mobile equipments, specialized tools, etc. are also covered.
To increase and retain the customer base, insurance companies often bundle up variety of insurance policies and provide them at a flat fee. Therefore, every contractor should understand the risk associated with his business and should fully safeguard and insure his business with idiosyncratic insurance policies, best suited for his business.