The Top 5 Small Business Insurance Must-Haves for Every Service Contractor

As a service contractor, your work is the backbone of countless projects. Getting the right insurance for Plumbers, Electricians, Heating HVAC, Flooring, Framing, Drywall and General Contractors can be confusing. Yet, amid the hustle and bustle, it's crucial not to overlook a vital aspect: small business insurance. In the industry of service contracting, unforeseen mishaps can occur, and having the right insurance coverage is like having a safety net for your hard-earned success.

When searching for an insurance policy, you should be considering more than just the price tag. It's important to consider what coverages you need depending on your specific business practices. In this post, we'll look at the top five small business insurance must-haves for any service provider so you can feel assured and secure.

General Liability Insurance

43% of small businesses were either involved in or threatened with litigation, according to research by the U.S. Chamber Institute for Legal Reform.

General Liability Insurance is your shield against the unexpected accidents that can arise from your operations. Whether it's a client slipping on a wet floor or accidental damage to a client's property, this coverage offers protection.

It is important that small business owners get general liability insurance to protect themselves against lawsuits stemming from third-party injuries and property damage. Additionally, issues including advertising harm, copyright infringement, and reputational damage are also included in many general liability insurance policies.

Imagine a scenario: you're a plumber working on a renovation project. If a client or third party gets injured due to a pipe malfunction, you could be held liable. General Liability Insurance steps in to cover legal fees, medical expenses, and potential settlements. If you don't have general liability insurance, you may have to pay for damages out of your own pocket, which might lead to financial ruin.

Workers' Compensation Insurance

According to the Occupational Safety and Health Administration (OSHA), around 2.8 million non-fatal workplace injuries were reported in a recent year.

When you have a team of skilled professionals working under you, their safety should be a priority. Workers' Compensation Insurance provides coverage for medical expenses, lost wages, and rehabilitation costs if your employees are injured on the job.

One of the most important notes to take away from workers' compensation insurance is that it is nonnegotiable in most states. What we mean is that it is a policy required by law (just like car insurance when you own a car). Even if your small business only has one employee, you will be responsible for supplying a worker's compensation policy as a precaution for any future accidents.

Commercial Auto Insurance

If your service contracting business relies on the use of vehicles, whether it's for efficiently transporting essential equipment or ensuring timely arrivals at various job sites, the inclusion of commercial auto insurance in your coverage portfolio becomes an absolute necessity. This vital insurance type serves as a protective shield against the various risks and uncertainties that come with being on the road.

Commercial auto insurance isn't merely an option—it's a defense against unpredictable scenarios that could arise while your team is in transit. This coverage extends its protective reach to encompass two critical areas: damage coverage for your vehicles and liability coverage in the event of accidents involving them.

However, the scope of commercial auto insurance goes beyond mere vehicular repairs. It also takes into account the potential liability that arises from accidents caused by your vehicles. Whether the accident leads to bodily injuries or property damage to a third party, the insurance policy helps shield your business from the legal and financial implications that could ensue.

Commercial Property Insurance

1 in 10 small businesses experienced losses due to natural disasters in recent years.

For service contractors with physical locations, commercial property Insurance is essential. From tools and equipment to office spaces, this coverage safeguards your assets against perils like fire, theft, vandalism, and natural disasters. Your company's physical property is protected by commercial property insurance. However, the overwhelming majority of insurance protects types of property rather than specific objects.

Whether you own or rent, it's a clever idea to protect your company's physical site with commercial property insurance. If the building or its contents are damaged or destroyed, property coverage can help cover the costs associated with fixing or replacing them.

Professional Liability Insurance

As a service contractor, your expertise is your most valuable asset. However, even professionals can make mistakes. Professional liability insurance, also known as errors and omissions (E&O) insurance, covers claims arising from professional errors, oversights, or negligence.

Let’s say you're an electrician, and a wiring issue you overlooked leads to a major electrical outage in a client's building. It's during this situation that professional liability insurance steps into the spotlight. This specialized coverage is designed to address the fallout from situations just like the one described. It's a safety net that ensures your business remains resilient even in the face of unexpected setbacks.

The Bottom Line

Successfully navigating the realm of service contracting calls for more than just expertise and tools. It necessitates the establishment of a sturdy foundation built upon comprehensive small business insurance coverage. When you invest in one or multiple of these essential insurance must-haves, you're not solely protecting your livelihood but also ensuring the long-term success of your service contracting endeavor.

As you explore your insurance options, remember that each business is unique. Working with professionals who understand your industry can help you tailor insurance plans to your specific needs. At Kline Insurance, we specialize in providing small business insurance solutions that cater to service contractors like you.

Contact us today for a FREE QUOTE and to learn how we can help you build a comprehensive insurance strategy that safeguards your business's future!


Is Your Small Business Prepared For a Lawsuit? (

Employer-Reported Workplace Injuries and Illnesses – 2019 (

The Impact of Natural Disasters on Small Businesses (

Contact Us For A Quick Quote
Or A Free Second Opinion

Quick Quote

How Can We Help?
0 of 350