The Impact of Technology on Contractors’ Insurance

Working as a contractor can be a rewarding and lucrative career path, often providing you with a wide variety of projects and opportunities. However, as a contractor, you may eventually need to offset losses and damages arising from accidents, errors or other unexpected incidents. That’s why contractors’ insurance is essential for even the most diligent and experienced professionals. However, as modern technology takes root in various contractors’ tasks, coverage needs and parameters may change.

How Technology May Change Contractors’ Insurance Needs 

Given the many specializations and functions of contractors, it should be no surprise that there’s significant variance in the types of insurance needed among such professionals. Still, certain types of insurance may be advisable for many contractors. Consider how technological advancement may impact the ideal versions of the following policies:

• Commercial property insurance—As a contractor, you likely depend on various tangible assets, such as tools, equipment and electronic devices. As technology advances and many machines become more expensive, you may need to retain greater coverage to ensure you have the ability to repair or replace them.

• Cyber liability insurance—As more elements of business transactions and communications move online, cybercriminals may be ready and waiting to exploit vulnerabilities. Contractors are not immune to data breaches and cyberattacks, and may often work with sensitive information, including clients’ financial information. With these things in mind, retaining suitable cyber liability coverage is crucial.

• Workers’ compensation insurance—Many contractors are subject to legal requirements regarding workers’ compensation coverage; however, as technology improves efficiencies, you may choose to reduce your workforce. As such, you may be able to lower your workers’ compensation coverage limits. Still, this should be done carefully, as being underinsured in this regard could have devastating consequences.

We’re Here to Help

At Griffin Insurance Group, we understand that coverage needs are not static. The ideal composition of your contractors’ insurance portfolio may change over time, and we are prepared to help maintain the right combination of policies. Contact us today to learn more.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.