Elevator Contractor Insurance

State laws and local regulations typically require elevator contractors to have a license and permit. To obtain them, you may need to be bonded and insured.

Here are several examples of what you might need:

• Business license. To form a business, you'll need to get a business license and register with your local government.
• Contractor's license. In most states, you'll need a contractor's license to install, maintain, and repair elevators. You may need to be a certain age, pass an exam, pay a fee, and show proof of liability coverage or a bond.
• Elevator permit. State and local regulations usually mandate a permit for elevator repairs, updates, and alterations, along with regular elevator inspections.
• OSHA and ADA compliance. Contractors must comply with safety standards set by the Occupational Safety and Health Administration (OSHA) and elevator requirements issued by the Americans with Disabilities Act (ADA).

A license or certification can help your elevator business get contracts and win bids, while insurance protects against costly accidents that might otherwise lead to bankruptcy.

Elevator contractors usually need insurance and a bond to comply with the law or the terms of a contract. Here are a few common situations:

• You need a license. State licensing requirements for contractors often mandate general liability insurance and workers' compensation insurance, even if you work alone.
• Your state requires it. Almost every state mandates workers' compensation insurance for businesses with employees, sometimes even for sole proprietors in the construction industry. Similarly, most states require commercial auto insurance for vehicles owned by a business.
• You rent an office. You'll typically need to show proof of liability insurance to sign a lease for an office or other commercial space.
• Your clients request it. Clients and partners may require you to be insured, so they know they'll be protected in the event of a lawsuit.

Even when it's not required, it's important to carry insurance to protect against unexpected financial losses from accidents and lawsuits. Similarly, a bond protects your clients—which makes it more likely they'll choose your business.

Elevator contractors often rely on other types of installation insurance as part of a comprehensive risk management strategy:

• Commercial property insurance covers your office and its contents, including computers, furniture, and equipment stored at your business address. If you don't have an office, you can buy business personal property (BPP) coverage to protect the items that belong to your business instead.
• Equipment breakdown insurance helps your business recover if a critical piece of machinery breaks down unexpectedly, such as an electric hoist used to install elevators.
• Business interruption insurance covers loss of income and operating expenses if your business is forced to close temporarily due to a fire or other covered property claim. It's also called business income coverage.
• Owners and contractors protective (OCP) liability insurance protects the project owner or general contractor from costs related to incidents caused by an elevator contractor. It protects the named insured who hired you, but it's not a replacement for your own liability coverage.
• Commercial umbrella insurance, similar to excess liability insurance, provides coverage when your underlying general liability, commercial auto, or employer's liability insurance policy reaches the limit on a claim.
• Builder's risk insurance covers in-progress structures and materials at a construction site in the event of fire, theft, or vandalism.
• Surety bonds provide financial compensation to clients and other parties if your elevator company fails to fulfill the terms of a contract or adhere to regulations.

Our licensed insurance agents can help you find the right insurance program for your elevator business, including bonds and specialty coverages.