The state of Iowa requires that all construction contractors be registered with the Iowa Division of labor, but only if their work will earn $2,000.00 for that year (not per job). “Construction” includes new construction, building alterations, and home improvement projects. Contractors who will be working in Iowa should visit Iowa’s Division of Labor website.
Iowa employers that have one or more employees (full-time or part-time) are required to carry workers’ compensation insurance. Contractors should visit the Iowa Division of Workers’ Compensation website for information and rules. Contractors can purchase workers’ comp from any commercial provider who is authorized to sell insurance in Iowa. Approved businesses are allowed to self-insure if they qualify.
The purpose for a comprehensive commercial insurance package is to mitigate the company’s risk of doing business. This means that if you or an employee injure someone or cause damage to someone’s property as a result of your business operations, your insurance company can step in and defend you or pay settlement costs and awards by the court. When you have a commercial insurance package in place, you are transferring your financial risk to the insurance company.
General and specialty contractors have the same risks and legal obligations exposures as larger firms. They can be sued for damaging client property, causing bodily harm, or advertising injury. General liability insurance helps cover legal fees and damages resulting from a lawsuit.
Many insurance companies will also have various riders that you can add to your policy in order to broaden your coverage and reduce your risks.
Although workers compensation is generally required in every state when a contractor has at least one employee, most contractors don’t realize if an employee has a work-related injury or illness, unless there is a workers’ comp policy in place, the contractor will be held responsible for the medical costs and wage loss of their employee.
Most contracting businesses make use of light trucks, cargo vans, trailers,and heavy duty trucks at the jobsite. It’s important that every contractor purchase commercial auto insurance rather than personal auto insurance to properly protect these vehicles and protect the business from liability claims. Even if you have a single pickup trump registered in the owner’s name, commercial auto insurance is the policy to purchase.
Tool and equipment coverage is known as Inland Marine Insurance and is designed to protect your high-value, movable property. When you take your tools and other equipment with you to the project site, inland marine insurance protects your hard working assets from all-too-common risks, such as damage and theft.
License Bonds and Permit Bonds are regularly needed by Contractors. Since surety claims are not caused by accidents, but rather, a failure to complete a project according to the terms of a contract. Ultimately, the surety has a responsibility to the oblige (customer) to "prequalify" the contractor or builder for the work.
Fairbanks Insurance Brokers is a leader in providing contractors insurance and is dedicated to providing Contractors and Builders the finest insurance protection at the lowest rates throughout the construction community.
With savings up to 65% on General Liability, Workers’ Compensation, Commercial Auto and Bonds, you can count on us to do the heavy lifting and provide you the most competitive quote that includes all the discounts for which you qualify.