From the plumber fixing a burst pipe to the carpenter crafting custom cabinetry, artisan contractors play an essential role in construction projects of all sizes. Yet, many contractors assume that a standard business insurance policy will cover all their risks. In reality, their unique exposures often require specialized property and casualty solutions tailored to their work.
By taking on an advisory role, brokers can educate clients about these gaps and offer tailored artisan insurance coverage. This approach — combining property and inland marine insurance — addresses the specific risks contractors face while fostering trust and building lasting client relationships.
The Unique Risks Artisan Contractors Face
For artisan contractors, unpredictability comes with the job. They frequently transport expensive tools to job sites, leave materials onsite overnight, and face exposure to risks like theft, transport mishaps, and extreme weather. These challenges demand targeted contractor insurance programs to mitigate losses and protect their bottom line.
Theft
Construction sites are prime targets for theft. Tools left overnight are particularly vulnerable, and the National Equipment Register estimates industry losses of up to $1 billion annually, with fewer than 25% of stolen items recovered.
Transportation Risks
Contractors regularly move tools and materials between locations. A vehicle accident can damage equipment stored inside, resulting in losses often not covered by auto insurance.
Weather Events
Severe weather events are increasingly common, with 2023 seeing 28 major disasters in the United States that caused over $92.9 billion in damages. Contractors are especially vulnerable to these disruptions, which can delay projects and strain budgets.
Understanding these challenges allows brokers to speak directly to their clients’ needs, providing tailored solutions that go beyond generic policies. This personalized approach sets your brokerage apart, helping clients protect their assets and maintain smooth operations.
How Property and Inland Marine Insurance Work Together
Artisan contractors require more than a one-size-fits-all insurance solution. Property insurance and inland marine insurance address different, complementary risks, forming a robust safety net for contractors’ assets.
Property Insurance: Protecting Fixed Assets
Property insurance covers fixed assets at designated locations, such as workshops or storage facilities. It protects against risks like fire, theft, and vandalism, ensuring contractors can recover from costly damages to stored equipment and materials.
Inland Marine Insurance: Protecting Mobile Assets
Inland marine insurance extends coverage to tools, materials, and equipment while in transit or temporarily stored at job sites. It fills critical gaps by covering scenarios such as:
- Tools stolen from a locked work van
- Materials damaged during transportation
- Weather-related losses at job sites
By combining these coverages, contractors gain comprehensive protection that aligns with the realities of their work.
Potential Scenarios of Coverages in Action
- Theft from a job site: An HVAC contractor’s locked storage box containing $10,000 in tools is stolen overnight from a worksite. Inland marine insurance covers the loss, ensuring the contractor can replace the tools and resume work without financial strain.
- Fire at a workshop: A plumber’s workshop suffers $25,000 in fire damage, including tools and copper piping. Property insurance steps in to cover the losses, enabling the contractor to recover quickly.
- Flooding at a job site and workshop: Severe flooding damages $30,000 worth of tools and materials at both a workshop and a temporary job site. Inland marine insurance covers the job site losses, while property insurance addresses damages at the workshop, ensuring the contractor recovers fully.
These scenarios highlight how combining property and inland marine insurance creates a seamless, practical solution for artisan contractors.
How Cochrane & Company Supports Brokers
Cochrane & Company empowers brokers to provide tailored insurance solutions that meet the specific needs of artisan contractors. By specializing in property and inland marine coverage, Cochrane & Company enables brokers to:
- Address unique risks with customized policies
- Simplify client education with accessible resources
- Streamline policy management through user-friendly tools
With over 60 years of experience, Cochrane & Company partners exclusively with brokers, ensuring they have the expertise and support to offer comprehensive contractors insurance coverage.
Protecting Artisan Contractors Wherever They Go
Artisan contractors depend on their tools and materials to get the job done. Without the right contractors insurance coverage, a single theft, accident, or disaster can derail their work and threaten their livelihood. By offering tailored solutions that combine property and inland marine insurance, brokers provide contractors with the protection they need to keep their businesses running smoothly.
Partnering with Cochrane & Company ensures you have the resources and expertise to meet these challenges head-on, positioning your brokerage as a trusted advisor in the specialized world of contractor insurance. With access to tailored solutions backed by expertise and resources, you can confidently address your clients’ unique risks. By partnering with Cochrane & Company, you can protect the livelihoods of these hardworking professionals while growing your practice in an advisory role.
About Cochrane & Company
For more than six decades, Cochrane & Company has been proudly at the forefront of the insurance industry. Our experience has enabled us to innovate in powerful ways, reimagining the E&S market, and providing technology solutions that make it easy to do business with us. Licensed in all 50 states, we proudly serve clients across the nation, providing personalized and powerful solutions to help you become an even better partner for your clients. Speak to one of our experienced professionals today by calling (855) 967-0069.
