What are Artisan Insurance Policies

Fundamentally, artisan contractors are skilled and trained tradesmen who perform only one trade in their occupation. Tradesmen or craftsmen classified as artisans include; painters, paperhangers, plumbers, masons, electricians, HVAC contractors, the landscapers, drywall installers, the tile setter, and the limited carpentry operation and cabinet installation craftsmen.  They are protected by artisan insurance policies.

There are several insurance companies who have designed special insurance programs to provide the needs of these business entrepreneurs. Basically, these insurance programs offer broad liability coverage at very low rates. They are available to smaller companies that are classified as less than $5,000,000 in receipts.

The Commercial Liability Insurance Policy is the most important policy to an Artisan Contractor. This policy will defend the contractor and pay on his behalf when he is found legally liable for bodily injury and or property damage that are caused by his business operations.

However, as a very broad insurance policy, it contains several exclusions. Most of the exclusions are deemed necessary where other insurance policy types are required to satisfy a more specific insurance need. This insurance policy excludes; workers compensation, watercraft, aircraft, automobile, and mobile equipment to name a few. While the policy covers damage you cause to property of others, the insurance does not cover damage to your product. This is a significant exclusion on this policy.

Another artisan insurance policy is the business liability insurance. This policy is necessary since the liability portion of some personal types of policies such as homeowner’s policy specifically excludes coverage for any business operations.
On situations where artisans work for general contractors, the tradesman will be required to provide proof of insurance to the general contractor before they can add them as additional insured on their general liability policy. Fundamentally, insurance companies have developed these special programs allowing automatic coverage within underwriting guidelines for these types of request. .

Moreover, there are far better contractor’s insurance programs that designed with built-in enhancements like; personal injury liability like libel, slander, false arrest, etc., the important per job aggregate limits, waiver of subrogation, employees as additional insured’s, and blanket additional insured’s.

The worker’s compensation insurance is another important artisan policy. This important insurance policy covers your statutory obligation on job related injuries and sickness. You are obliged to pay employee’s medical bills and lost wages.
In some states in the U.S., artisan or business owners can decide if they want to be covered for workers compensation benefits. Those who decide to be covered will enjoy the same benefits as a covered employee. Premiums are charged based on artisan’s declared compensation, but excludes profits.

Artisan or business owners who exclude themselves from the coverage will not be charge for their compensation. However, additional premiums will be charge to the General Contractor that hire the artisans on their workers compensation policy. The artisan is eligible for the benefits of their policy in the event they are injured on their job.

In hiring sub-contractors, artisans must exercise special care. Make certain that they have workers compensation coverage that includes the owners. Without this, you will be charged the premium just as if they were your employees.

Remember that payroll determines the insurance premiums for the workers compensation insurance.

Insurance premiums at the start of a policy will be based on your estimated payroll you will incur in a year. A deposit premium will then be based on your estimate. But at the end of the policy, insurance companies will contact you to review your payroll records and general ledger to find out how much you paid to subcontractors. You will receive a bill for additional premium if your estimate was low or get a refund if your estimate was high. It is usually recommended to better over-estimate rather than under-estimate your payroll forecast.

But as a professional tradesman, consider these important artisan insurance policies to protect you and your trade.