Services done by contractors are being invested by communities nationwide. The reason for the investments of communities nationwide is because of the significant need of property in the real estate and business sector. Following this, contractors are sure to provide and profit from the rising needs.
Unfortunately, handling services to develop and revitalize a community can put contractors at risks for specific errors. Contractors should have proper insurance in place before starting any work to protect themselves, the property they work on, and the workers they hire.
Accidents can happen in the workplace, and whether we like it or not, it isn’t something that we can control. Also, if something were to go wrong, missing, or lacking, clients are always quick to place blame. Here are the five reasons why insurance is essential for contractors.
Covering for Your Employees In Case of Injury on the Job
The tasks done during renovations or reconstructions have the possibility of employee injury to happen. Having a Workers’ Compensation insurance ensures that your employees are covered if they get hurt or ill because of their job. In addition, the costs of rehabilitation treatments, medical care, and lost wages are also covered by the Workers’ Compensation insurance.
Also, the cost of the insurance will also depend on how bad the risks are on the job. Specific jobs such as construction have a higher risk of injury, making the cost of the workers’ compensation more expensive.
Protecting Yourself Against Bodily Injury Claims
Contractors can’t predict every outcome that’ll happen in the area during a job. There will always be unpredictable and unexpected bumps in the road. For instance, a client could suddenly visit unannounced and encounter an injury. And without General Liability Insurance, dealing with injury claims that weren’t your fault can be extremely daunting to deal with.
Dealing with bodily injury claims can be costly for your business. You will have to deal with the medical bills from appointments with the doctor and hospital stays. General Liability insurance as well as property coinsurance will help alleviate the financial stress on your business by covering the cost of the bodily injury claim.
Protecting Yourself Against Personal and Advertising Injury
Renovation and Reconstruction services are booming. Unless you don’t have an effective advertising campaign, other businesses will file a claim against you for the way you advertise your business. For instance, a competing business might file a claim against you for having a similar design on the service provided.
General Liability insurance will cover the costs for you if ever another business filed an advertising claim. Having General Liability insurance from the start can provide an excellent foundation for your business over time.
Since 90% of businesses are involved in lawsuits at any time, the chances of a business filing an advertising claim against are high. Further, you have to keep in mind that legal fees can accumulate quickly, and could bring your business down.
Thus, having General Liability insurance can help cover the legal expenses if ever a competing business were to bring you to court.
Protecting Yourself as a Contractor
Contractors and the employees aren’t perfect, and mistakes can be made. Having Errors and Omissions policy will help cover for your defense if a client files a financial loss claim because of your professional negligence.
The Errors and Omissions policy is essential mainly for contractors who plan, design, and build projects. The reason for this is because designing projects increases the risk of you to be sued for your negligence.
Securing Your Tools
Contractors need their tools protected because of constant transferring between job sites. Contractors’ Equipment policy is a type of Inland Marine policy where they go wherever your tools go. These tools cover for your mobile machineries such as dump trucks, trailers, and forklifts.
But, the Contractors’ Equipment policy doesn’t necessarily mean it only covers for expensive tools, it also covers for small tools such as clothing and equipment.
Insurance is essential for contractors to ensure the creation, sustainability, and growth of your business and the services you provide. Contractors insurance also makes sure that your business is protected from unforeseen accidents and problems that your business might face.
Although acquiring contractor’s insurance can be costly to at the start. You have to recognize that it’ll be more expensive for you if the matters are taken into court because of your professional negligence.