Why Do Contractors Need Insurance?

contractor insurance

Business insurance offers coverage to contractors that have various objects of activity and want to protect their business and budget. There are types of insurance required by the law in most of the states (liability insurance, workers compensation, commercial auto insurance) as well as optional policies.

What is insured?

Business insurance can be customized, according to the needs of each contractor. You can choose for what risks your business should be covered, so that you get full protection, adapted to your business and location.

In order to allow you to dedicate yourself exclusively to business management, insurers offer different types of coverage, created especially for the protection of the components essential for carrying out your activity:

  • buildings and other constructions
  • heating installations, fixed electrical installations, air conditioning systems
  • equipment, machines, tools
  • furniture, office supplies, electronic and electro technical equipment
  • stocks of goods and circulating means, raw materials, finished products or in progress
  • goods in transit

    Your employees will also benefit from protection.

Risks covered

Business insurance can fully protect you, if you choose adequate policies, according to the specific of your activity. Risks covered include several categories:

Protection for buildings, equipment, machinery, materials, goods that may be exposed to risks such as:

  • Fire, explosion, falling objects
  • Vehicle collisions
  • Damage to pipes, sewerage or central heating installations
  • Storm, lightning, flood, landslides, earthquake, snow
  • Theft, vandalism, political risks
  • Financial losses as a result of the interruption of activity, following a disruptive event
  • Sudden or unforeseen damage or destruction, caused by internal causes, of machines and equipment
  • Accidental damage or destruction of fixed or portable electronic equipment
  • Destruction, loss or theft of goods and products during transportation

Protection of clients, employees, as well as third parties who interact with your business and may suffer damages resulting from personal injury and/ or other destruction or loss of property, caused by unintentional actions, a poor state of the building, things or animals that belong to you and for which you are responsible etc.

Protection against other risks to which your employees may be exposed, such as:

  • Temporary incapacity for work (hospitalization, medical leave, surgery)
  • Invalidity, as a result of work accidents and occupational diseases
  • Death, as a result of accidents

Additional clauses for which contractors can opt

Depending on the object of your activity, next to the basic coverage you can choose one or more of additional clauses that will increase the protection offered by the business insurance:

  • Coverage of electrical damage
  • Coverage of portable equipment
  • Coverage offered in the event of falling or collapsing stocks
  • Compensation offered in advance
  • Coverage for business downtime

The functions of business and contactor insurance

  • Financial compensation for losses caused by certain risks
  • Prevention of damages, which can be achieved by financing certain risk prevention activities and even educational programs for the insured
  • Financial function – The insurance companies invest the money in the form of insurance premiums, increasing the existing availabilities
  • Saving money and protecting the budget
  • Reducing costs related to social protection – Insurance companies help the states when it comes to social and medical assistance, compensation for work accidents etc.

Leasing New Cars for Your Business: What to Look for in Auto Leasing Companies

Auto leasing companies have the possibility to offer you some of the best vehicles you can find on the market. If you need a fleet of vehicles for your business, or if you just need a few cars to get your merchandise to the surrounding cities and areas, you can get a few excellent deals with the help of these companies.

car, money. finance

But what are the most important things you have to remember about working together with these services? Also, what is it exactly that you should look for when considering which auto leasing service to contact?

What Are the Advantages of Leasing Cars or Trucks for Business?

As many experts can tell you, contacting commercial truck leasing companies is a much better idea than purchasing vehicles for business or using your own. Aside from the fact that the vehicles you use for your transport or delivery business will require constant maintenance, which will also cost a lot of money, they might break down from time to time due to exceeding wear and tear.

Under these circumstances, spending huge amounts of capital on purchasing your own vehicles is simply not financially feasible, nor will it allow you to recover your investment any time soon.

On the other hand, leasing provides you with a viable alternative. Not only is leasing less expensive, but it allows you to fine tune your investment. Suppose you need 10 vehicles to comfortably finish the job you need to assign to each of them. By buying them you end up with a large investment, and even if you try to minimize it by buying only 6 or 7 at first, the investment is still sizable, and you don’t have as much control on it either.

With leasing, you can easily tweak your monthly expenses depending on the returns you get from your business. Giving up 1-2 vehicles then makes a lot of sense as a short term boost to your finances, and you can also grow your fleet of vehicles more steadily.

3 Important Leasing Tips to Follow

When leasing new cars, it’s essential to try and find the best offers on the market and to make sure the auto leasing company you aim to do business with is respectable. Here are a few tips to help you out regarding these concerns:

  1. Can you find any lease specials? Discounted offers can often help you get lower interest on slower-selling models without sacrificing on quality. Also, these offers will assist with your business’ savings short term and long term. Just make sure to read the fine print of your contract as closely as possible, and be mindful about any additional expenses that aren’t immediately obvious.
  2. Consider the residual value of the cars you lease. The residual value is given by the car’s depreciation over the lease period. For example, if a car is worth $20,000 and you lease it for 3 years at a price of $250 per month, then its depreciation shouldn’t be much higher than $9,000 – the total amount you’ll be spending.
  3. Finally, make sure you ask your vehicle leasing company about the interest rate and compare the rate with that of other companies to find the best offers on the market.

By following these basic tips while searching for auto leasing companies in your local area, you should easily be able to find responsible and trustworthy dealers who can help you make the best possible choices.

How Do Mortgage Rates Work and Why Should You Find the Best Denver Mortgage Rates?

If you’ve been searching for a good mortgage offer for a while, you already know about local Denver mortgage rates and what they’re about. However, it may be important to get as much information as you can when it comes to the possibility of finding the best mortgage rates.

For that purpose, you have to learn as much as possible about how mortgage rates work, where they originate, what factors lead to their likely growth or fall, and what you should pay attention as a local borrower.

Understanding Mortgage Rates

Monthly mortgage payments depend a great deal on interest rates. When you get your mortgage, a fixed or adjustable rate of a certain value will determine how much your payments will be, and whether or not you might be able to pay them off on time.

Denver mortgage rates are typically determined by the local lender you are considering. Their method of calculation is quite complicated, and it includes some values and variables that are specific to each lender in part.

The most significant indicator that shows whether mortgage rates are higher or lower is the 10-year Treasury bond yield. This is an excellent standard to judge the value of a mortgage rate, since typically mortgages are already paid off after 10 years, despite the fact that they may be calculated based on a 30-year time frame.

What you have to understand as a borrower, however, is that the mortgage rate is most likely to grow or diminish along with the risk that the lender takes. If your mortgage presents the lender with a higher risk – for instance, in the event that the current stability of your employment doesn’t constitute a good enough guarantee that you can keep up with the payments over time – then the mortgage rate will also go up.

Find the Most Advantageous Local Mortgage Rates

The idea that you have to “find” the best mortgage rates in order to qualify for a good mortgage loan is somewhat incomplete. Although it’s a good idea to look for the best offers online, getting a great mortgage rate is largely dependent on your own ability to improve your financial situation.

For instance, being able to choose an offer that requires a larger down payment may sometimes yield a smaller interest rate. Also, a better credit score or a higher salary will definitely give you an edge and allow you to apply for better offers. A credit score of 620 will generally help you qualify for a mortgage rate of about 5%, while anyone with a score of over 700 can expect rates as low as 3.6%.

To make sure you’ll qualify for a good mortgage rate, you have to first find your bottom line. Ask for your credit report, and talk to a local mortgage lender or broker to find out how your current financial situation and your ability to pay off a large enough down payment might influence the rates you might qualify for. Once you have that information, you can start working on improving your credit score and your financial situation to the point where you can easily aim for the best mortgage rates in Denver.