Understanding Insurance for Contractors
Insurance is a critical component of a contractor ’ s business strategy , offering protection , compliance , and credibility .
John Miller , MWIS ’ Contract-Based Finance Program Manager discussed in depth the importance of securing insurance for contractors during a webinar entitled , “ Understanding Insurance for Contractors ,” held this past summer . He covered different types of insurance , worker ’ s compensation , contractors ’ equipment floater , professional liability or errors & omissions , OCIPs & CCIPs or wrap-ups , and how to mitigate the impact of insurance cost to improve bidding .
“ From a practical coverage standpoint , the three [ types of ] coverage you will typically see are first-party coverage , third-party coverage and worker ’ s compensation ,” said Miller . “ In first-party coverage , you are buying insurance to protect your assets like tools and equipment . Thirdparty coverage is for bodily injury and property damage . Worker ’ s compensation
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