Typically, contractors insurance will come into play if a business focuses on one or more of the following: construction, carpentry, plumbing, cleaning, electrical work, landscaping, painting, snow removal, and more.

These categories cover a wide range of businesses and needs. Since every business is different, insurance options range from standard policies to a mix of appropriate coverages. However, some issues are common to almost every contractor, including:

• Bodily injury and property damage: Many contractors work with heavy machinery and tools. If you do, or you hire workers who do, you should be concerned with potential accidents related to your equipment.
• Product liabilities: If you deliver a product or serve food, you must consider potential injuries to those recipients, and illness.
• Medical and disability: In addition to the safety of others, it’s also important to consider an owner’s own health. An owner needs coverage in case of becoming ill or being injured.
• Errors and omissions: If you provide consulting advice, such as that provided by landscapers or others, you risk liability. Coverage is needed in case a client experiences loss as a result of the advice.

To cover each of these areas, companies will need an appropriate bundle of policies that meet the specific needs of the operations. Options include:

• General liability: This is the standard that everyone needs. It covers bodily injury and property damage. For medical costs, it covers anyone injured during the course of the work. For property costs, it includes the project contractors are working on plus third-party claims.
• Completed operations/products: This covers any products sold or distributed, as well as any issues caused on a completed project.
• Contract liability: This policy provides coverage in the case of a contract dispute. It may or may not be included with general liability coverage.
• Commercial vehicle: If vehicles are used in the business, companies need this coverage for asset protection, as well as providing coverage for accidents.
• Workers’ compensation: The regulations for workers’ compensation vary by region. In the case of solo contractors, it’s likely they won’t be required to carry this insurance, but it’s not guaranteed. Be sure to check with an agent about local requirements. If a company has employees, this coverage is needed to protect workers from injury, illness, or death. It provides for employees if they must miss work and for the contractor in case of an employee lawsuit.
• Professional liability: This is also known as errors and omission insurance. It protects the contractor in the event of an error that causes a client financial loss. It covers legal defense and settlements.

It’s common for businesses to change and grow. Contracting businesses can be particularly dynamic. As companies expand and develop, they need to maintain communication with their agents. Company owners should also review policies annually to determine their needs and make any changes necessary to meet those needs.

However, many people don’t realize that Medicare only covers part of their health care costs. The individual must cover the remainder, which includes copays, deductibles, and dental, hearing, and vision care.

Generally, when US citizens turn sixty-five, Medicare enrollment is automatic. However, the significant coverage gaps above can cause financial hardships if you don’t understand the choices Medicare offers. For example, “original” Medicare provides Part A (Hospital) insurance and Part B (Medical) insurance. However, Part A and Part B have different costs: Part A is automatic for most people; Part B is $104.90 per month in 2016. Both have copays and deductibles, which can be steep.

By sixty-five, most of us take at least one prescription medication. For prescription coverage under Medicare, you must have a Medicare prescription drug plan. Therefore, you should consider Medicare’s Part D; be aware, however, that it will cost extra.

For help with copays and deductibles for lab tests, doctor visits, and hospitalizations, you’ll need to shop for supplemental coverage. Medicare pays private insurers a fixed amount each month to manage your health care. You may hear it called “Medigap,” “Part C,” or “Medicare Advantage,” and it requires an additional monthly premium payment.

Each supplemental plan covers different doctors, hospitals, and lab facilities, so it’s important to work with an experienced health insurance agent to choose a plan that will cover the medical providers you want to work with.

If this all sounds confusing, it is. While you can navigate the Medicare website, gather information about the various plans, and even choose a policy online, you run the risk of making a costly mistake. Call my office before you make that important transition to Medicare.

This new technology provides new business opportunities, but it also comes with new insurance needs. Commercial drones can cost anywhere from $1,000 to $100,000. They also add liability risk, with the potential to cause damage to property or personal injury if the drone malfunctions. Insurance is needed.

Coverage options

With these costs in mind, business owners employing drones must consider what insurance coverage to obtain. Several options are available: you can add unmanned air vehicle coverage to your liability and property insurance, take out a separate drone insurance policy to cover liability in case of an accident, or take out a separate drone insurance policy to cover both the drone and liability.

A solid policy protects you against damage done by or to your drone. It covers a wide range of circumstances including liability coverage for ground crew and independent contractors, manufacturers’ liability, medical payments, personal injury, and damage to your own property and contents.

Which option is best will depend on the activities the drone will undertake and its cost.

Companies using fairly inexpensive drones may not find it cost-effective to obtain damage coverage. However, liability coverage is wise and, in fact, may be required under certain circumstances.

More benefits of drone insurance

It’s about more than just the law. Obtaining insurance for a single drone or a fleet can provide additional advantages for your business. Many clients these days are likely to be interested in using your drone capabilities. And because some of your clients might not want to work with someone who isn’t fully insured, a drone policy will attract business by proving that your company is professional, reputable, and worthy of their business.

How to get coverage

Obtaining drone coverage is similar to obtaining auto insurance. If you demonstrate you are safe and prepared, you are more likely to get better rates. Most insurance companies want to see maintenance logs, operating manuals, and a record of enhancements made to the drone. You should also ensure all pilots (operators) are well-trained and provide proof of this training for your insurance company. These items lower the risk to your drone and the risk it poses to others. This, in turn, lowers insurance company costs.

Costs for drone insurance

Costs for drone insurance varies, depending on these risk factors as well as the value of the drone and its use. Typically, coverage can be obtained for as little as $900 a year. Considering the potential cost that could result from just one incident, this expense is well worth it.

If your business currently uses drones (or could benefit from using them), discuss the various options for commercial drone insurance with my office.