The typical fire protection contractor is tasked with designing, fabricating, and installing various types of fire protection systems; including the equipment associated with these systems, excluding electrical alarm systems. In many cases, the fire protection installation will involve some construction and plumbing tasks. Since installing and repairing fire protection systems involves working with various tools and lifting heavy equipment, injuries at the job site are not uncommon. There is also a considerable risk of causing property damage and bodily injury to third parties. For these reasons, Fairbanks Insurance Brokers recommends a comprehensive contractors package to protect your company and employees.
Fire protection contractors are especially vulnerable to third-party lawsuits because their business involves not only product installation and repair, but also onsite construction, plumbing, and electrical tasks. Transferring these risks to a general liability policy will provide financial protection for defense costs, settlement costs, and judgments awarded by the court.
Job sites can be dangerous because of the electrical tools and equipment needed to complete a fire protection project. Your workers’ compensation policy will pay for employees’ medical costs and lost wages that result from work-related injuries and illnesses. Since your state will require your company to be licensed to operate, workers’ compensation insurance will be part of that requirement.
Most businesses that hire fire protection contractors will require a surety bond as a financial guarantee that the project will be completed according to the project agreement. Your state licensing authority will likely require a bond as well.
The contractor’s commercial auto policy will provide liability and physical damage protection for your business vehicles and your insured drivers. Many companies will also provide protection for cargo your company delivers to the job site.
Having your contactor tools and equipment insured under an inland marine policy will greatly reduce out-of-pocket expenses if your tools or equipment are damaged or stolen at the job site, while in transit, or while in storage.