Protect Your Business and Your Employees with Contractor Insurance

Construction and contracting companies face unique risks.  Whether a sole proprietor, a small business, or a big company, the work itself can be dangerous and risky.  Not only can workers get injured on the job, but you may be held liable for the workmanship and damage from errors.

General Liability Insurance

General liability insurance can help protect your business from lawsuits by providing coverage for injuries, accident, and some errors.

If someone alleges your business is the culprit when someone gets hurt or their property is damaged, general liability insurance can help prevent you from having to pay the claims out of your own pocket.  Depending on the seriousness of the claim, that could mean severely restricting your cash flow, dipping into your savings, going into debt, or potentially even having to close your doors.

Other Types Of Contractor Insurance

There are other types of insurance you may want to explore.  Does your business have company vehicles?  Do you have an office or is all your work done at customer locations?  Do you have a lot of money tied up in tools, assets, or inventory? You will want to talk to an expert insurance agency to determine your specific situation.

  • Builder’s Risk Insurance
  • Property Insurance
  • Commercial Vehicle Insurance
  • Business Owner’s Insurance
  • Workers Comp Insurance
  • Umbrella or Excess Liability Insurance

Different types of construction and contracting business may have very different needs.  Contact Henderson Insurance Agency to help customize an insurance package for your specific needs.

Depending on your exact location, job, state, and local requirements, you may also need license bonds and/or permit bonds that have the financial backing of an insurer.  You may also be required to prove you have specific types of insurance in specific amounts before you can begin a job for many business or governments.

In Harrisburg, PA, count on Henderson Insurance Agency to provide you with all the information you need about Contractor’s Insurance. 

How Is A Workers’ Compensation Policy Premium Calculated?

Like many Harrisburg, PA small business owners, you may find it difficult to understand how your workers’ compensation premiums are calculated. Because workers’ compensation premiums can vary for a variety of reasons, the calculation process can be complex, and inaccurate calculations can result in surprise bills in the future. Henderson Insurance agency has created this basic overview to help shed light on some of the details involved in calculating your workers’ compensation insurance policy premium.  

Business Risk Classification

Before your premium is calculated, the insurance company will classify your business based on the industry risk of injury, and then use that classification code to estimate your premiums. If your company engages in a more potentially dangerous industry, such as construction, you will end up with a classification code with higher rates than a business that has less risk, such as customer service.

Annual Payroll Estimate

Once your classification code is set, the insurance company applies the class code rate to your anticipated payroll for the coming year. Because the policy premium is calculated based on projected estimated for the coming year, it is difficult to calculate the premiums exactly. Once your premium is calculated, you are required to make your initial payment.

Premium Payment

If you are a small Harrisburg, PA business and your estimated annual insurance premium is less than $1,000, you’ll be expected to pay the entire year’s premium at once. However, if your workers’ compensation premium is more than that, an installment plan may be offered for payment. With an installment plan, you’ll typically be asked for a deposit premium that represents 20 percent of your total estimated premium.

End-of-Year Audit

Your workers’ compensation policy expires at the end of the year, and when it does, you’ll need to renew your policy in order to continue your coverage. When your policy expires, the insurance company will still need to continue calculation on your previous policy. Within a month or two of the policy expiration, they will audit your payroll to compare it to your new term estimate. This audit is an obligation of the policy and is required by the State. If your payroll was lower than anticipated, you will receive a return premium, but if it was larger, you’ll be required to pay an additional premium to cover the difference.

For more information about how to plan for your workers’ compensation coverage premiums, or for answers to questions about your policy, contact Henderson Insurance Agency today.