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Contractor Insurance Essentials: What Every Established Contractor Needs to Know
Jon Hood
Just like a wolf pack, contractors face business risks that hunt in groups — unpredictable, persistent, and ready to pounce when you’re not watching. Expecting your general liability insurance to handle all your risks is like expecting a single wolf to fight as well as a pack. As a contractor with employees, heavy equipment, and a growing crew, you need more than just a shield; you need a fortress. Here’s how to protect your contracting business from the risks lurking in the shadows.
1. General Liability Insurance: The Foundation, But Not Enough
General liability insurance is your first line of defense — the alpha wolf keeping watch over your contracting business. It covers bodily injury, property damage, and legal defense costs if someone sues you for accidents related to your work.
But don’t kid yourself: general liability isn’t a catch-all. It won’t protect you against pollution damage, faulty workmanship, workers’ injuries, or vehicle accidents. Relying on it alone? That’s like expecting a single wolf to play defense for the entire pack. Good luck with that.
2. Equipment and Tools Coverage: Protect Your Lifeline
Your tools and heavy machinery are the heart of your contracting business — lose them, and you might as well close shop. Think of this coverage as the den’s sturdy fence keeping predators out.
moreThe COI Mistake That Could Cost Your Contracting Business Its Biggest Job
Jon Hood
Picture this: You land a big contract—six figures, maybe more. Crews are lined up, equipment’s ready, your trucks are on the road. Then, two weeks in, you get a call from the GC’s office: “We have to pull you from the job. Your Certificate of Insurance isn’t compliant.”
That’s not hypothetical. I’ve seen it happen. And in most cases, the problem isn’t that the contractor didn’t have insurance—it’s that their COI didn’t match the contract requirements.
The worst part? That kind of mistake can cost you more than just a job. It can put you on the hook for claims you thought someone else’s insurance would cover.
What a COI Actually Is (and What It Isn’t)
A Certificate of Insurance (COI) is just a snapshot of your coverage. It’s not a magic shield, and it’s definitely not a guarantee that your policy will respond to every situation in the contract you signed.
Think of it like a driver’s license—it shows you’re legal to drive, but it doesn’t prove you’re a good driver or that your car is in good shape.
The Most Common COI Landmines
These are the mistakes I see over and over again:
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Missing Additional Insured Endorsements
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The Risks of Hiring an Unbonded and Uninsured Contractor in Washington State: Why You Should Protect Yourself
When it comes to hiring contractors for home or business projects in Washington State, it’s crucial to ensure they are properly bonded and insured. While it may seem like a tempting cost-saving measure to hire an unbonded and uninsured contractor, the risks involved can far outweigh any potential savings. In this article, we will explore the significant dangers of hiring an unbonded or uninsured contractor and how proper coverage can help protect you, your property, and your wallet.
moreWhat Is Cyber Insurance And Why It’s Crucial For Small Businesses In Washington State
In today’s digital age, every business, regardless of its size, is at risk of cyber threats. Cyber insurance is designed to protect businesses from the financial impact of these threats, including data breaches, hacking, and other online vulnerabilities. In Washington State, with its thriving tech and business sectors, the importance of cyber insurance cannot be overstated—especially for small businesses.
moreEmployers Liability vs. Workers’ Compensation – What’s the Difference?
Jon Hood
Workers’ compensation and employers liability (also called stop gap coverage) protect your business in different ways—just like wolves in a pack have different roles in guarding against threats. Workers’ comp covers medical bills and lost wages after a workplace injury. Employers liability steps in when an injured employee or their family sues for damages not covered by workers’ comp. Both coverages are essential to keep your business—and your pack—safe. Learn the key differences and make sure you’re fully protected.
moreBuilder’s Risk Insurance in Washington State – Coverage & Protection
If you’re starting a construction or renovation project in Washington, securing a Builder’s Risk Insurance policy is essential to protect your investment. Our Lynnwood, WA-based insurance agency specializes in providing comprehensive builder’s risk coverage tailored to your project’s needs.
moreUnderstanding Key Insurance Terms for Washington Businesses
In the world of commercial insurance, understanding specific terms and designations can make a significant difference in how risks are managed and contracts are fulfilled. Two of the most commonly misunderstood terms are “certificate holder” and “additional insured.” While they may seem similar, they serve very different purposes. Let’s break down the distinctions in a way that’s easy to understand and relevant to your business needs.
moreWhy Homeowners Insurance Premiums Have Increased in Washington State
In the past five years, homeowners across Washington State have seen their insurance premiums skyrocket. If you’re wondering why your rates have increased, several key factors are driving the surge. From rising claim costs to natural disasters and inflation, homeowners insurance has become more expensive. At Hood Insurance Agency, based in Lynnwood, WA, we help our clients navigate these challenges and find the best coverage options available.
moreWhat is TRIA Insurance Coverage and Why It Matters for Washington Businesses
If you own a business in Lynnwood, WA, or anywhere in Washington State, you may have seen Terrorism Risk Insurance Act (TRIA) coverage as an option on your commercial insurance policy. But what exactly is TRIA, and should your business opt in?
moreUnderstanding the Difference Between a Commercial Excess Policy and a Commercial Umbrella Policy in Washington State
When it comes to protecting a business from significant financial losses due to liability claims, insurance plays a crucial role. Two common types of liability coverage that provide additional protection beyond primary insurance policies are commercial excess liability policies and commercial umbrella policies. While these terms are often used interchangeably, they serve different purposes and have key distinctions.
moreUnderstanding Replacement Cost, Actual Cash Value, and Coinsurance in Business Insurance
As a business owner in Washington state, having the right insurance coverage is essential for protecting your assets. At our Lynnwood, WA-based insurance agency, we specialize in helping business owners navigate the complexities of commercial property insurance. One of the most critical aspects of insuring your property is understanding the difference between Replacement Cost Coverage and Actual Cash Value Coverage, as well as how coinsurance can impact your claims. Additionally, as of January 1, 2022, labor costs cannot be depreciated in an Actual Cash Value (ACV) policy. Let’s break these concepts down so you can make informed decisions for your business.
moreWhat Does a Management Liability Policy Cover?
As a business owner or executive in Washington state, your leadership decisions carry real legal risk. That’s why having the right insurance coverage—especially a Management Liability Insurance policy—is critical. At Hood Insurance Agency, based in Lynnwood, WA, we help business owners throughout the state protect their companies and leadership teams from lawsuits that stem from managing a business. Here’s what a Management Liability policy typically covers—and why it matters for Washington businesses.
moreWhat You Need to Know About Vacant Buildings and Insurance in Washington State
Vacant buildings pose unique risks and require specialized insurance coverage. Whether you own a vacant commercial property, a rental home between tenants, or a building awaiting renovation, it’s essential to understand your insurance options to protect your investment. Here’s what you need to know about insuring vacant buildings in Washington State.
moreWhat Does a General Liability Insurance Policy Cover?
If you own a business in Washington—whether you’re a contractor, retailer, consultant, or service provider—you need General Liability Insurance. It’s not just a “nice to have” policy; it’s the foundation of your commercial insurance plan. At Hood Insurance Agency, based in Lynnwood, WA, we work with business owners across the state to make sure they’re protected against the risks that come with simply being in business. Here’s what a Commercial General Liability (CGL) policy covers—and why it matters.
moreUnderstanding Directors and Officers Insurance in Washington State: Why It’s Essential for Nonprofits and HOAs
Nonprofit organizations and homeowners associations (HOAs) in Washington State, including those in Lynnwood, rely on their directors and officers to make crucial decisions that impact their communities. However, these leaders can be held personally liable for their actions, making Directors and Officers (D&O) Insurance a critical safeguard for nonprofit organizations and HOAs.
moreGaragekeepers Insurance and Garagekeepers Liability Insurance for Washington Business Owners
If you own an auto repair shop, dealership, body shop, towing service, or car detailing business in Washington, you need to understand garagekeepers insurance and garagekeepers liability insurance. These specialized policies protect your business from financial losses if a customer’s vehicle is damaged while in your care. In this guide, we’ll cover the key differences between these policies, who needs them, and how to choose the right coverage for your business.
moreHow to Avoid Construction Insurance Disasters in Washington State
When it comes to construction projects, insurance is an essential part of ensuring everything runs smoothly. Construction sites are inherently risky, with numerous moving parts, from workers on-site to equipment, materials, and the structure itself. Construction insurance can protect you from a variety of potential disasters, but without the right coverage, you could be left exposed to significant financial risk. Here’s how to avoid construction insurance disasters in Washington state and ensure your business remains protected.
moreHow to Insure Your Business Tools and Equipment in Washington State
As a business owner in Washington State, ensuring the safety and longevity of your tools and equipment is essential. Whether you own a construction company, run a retail shop, or operate a service business, having the right insurance coverage for your tools and equipment can save you from significant financial losses if something goes wrong. This article will guide you through how to properly insure your business tools and equipment, with tips on getting the best coverage tailored for businesses in Lynnwood, WA, and across Washington State.
moreUnderstanding Insurance and Liability Risks from Subcontractors and Their Employees: A Guide for Washington State Business Owners
As a business owner in Washington State, managing liability risks associated with subcontractors and their employees is essential to protecting your company from potentially expensive claims. Whether you’re working with subcontractors on construction projects, IT services, or any other industry, it’s critical to understand the insurance and liability risks involved. At Hood Insurance Agency in Lynnwood, WA, we specialize in helping business owners like you navigate the complex landscape of liability insurance, ensuring you’re adequately protected from the risks that subcontractors and their employees may pose.
moreHow to Safely Manage Multi-Employer Construction Projects with Insurance in Washington State
Managing multi-employer construction projects comes with its unique challenges, especially when it comes to ensuring safety and adequate insurance coverage for all involved parties. In Washington State, where construction activity is thriving, it’s essential for general contractors and subcontractors to be aware of the risks and responsibilities associated with such projects. Insurance plays a pivotal role in mitigating these risks. Here’s how to safely manage multi-employer construction projects with the right insurance strategies.
moreSmall Business Insurance in Washington: Real Questions, Real Answers
Running a business in Washington means opportunity—but also risk. From lawsuits to property damage, threats are always circling. The good news? You don’t have to face them alone. At Hood Insurance Agency in Lynnwood, we believe protection is more than a policy—it’s a principle. And like any strong pack, we defend our own.
Here are the real questions we hear from Washington business owners—and the straight answers that keep you one step ahead of danger.
moreCyber Insurance for Washington Construction Companies: Guarding Your Digital Den from Cyber Predators
Jon Hood
In Washington State’s construction industry, speed, precision, and trust are everything. But while you’re focused on building the physical world, digital predators are quietly circling. From ransomware attacks that lock down blueprints to phishing scams that reroute six-figure wire transfers, cyber threats are no longer rare—they’re hunting daily.
Cyber insurance is the guard dog for your digital den, helping you recover financially when an attack happens. For construction companies in Seattle, Everett, Spokane—and every jobsite in between—it’s becoming as essential as your liability coverage.
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