Know your limits. Your agreements/MSAs with your customers most likely call out certain coverage types and amounts that your company is required to maintain in order to do work or provide services. Most insurance agents are able and willing to review the insurance requirements of your MSA and procure the proper coverage to be compliant. Make sure you pay attention to any underlying exclusions and/or endorsements that MSAs call out. Some commonly required endorsements may include: pollution, contractual liability and professional liability.
“Most insurance agents are able and willing to review the insurance requirements of your MSA…to be compliant.”
Even if you don’t have written agreements with your customers, you need to maintain sufficient coverage for the size and operations of your business. This will typically be General Liability, Auto and/or Equipment Liability and Worker’s Compensation/Employer’s Liability. Again your insurance agent will know how to determine the risks that are present and offer a policy that best suits you and your company. Review at least annually to ensure proper coverage for any growth your company has experienced.
Adequate Worker’s Compensation insurance is a necessity to ensure that an injury or accident is not catastrophic for your company, and it is required by law in most states. If an employee is injured while working for you, you may be legally liable for their medical care and a portion of their lost income, and could also be subject to a law suit.