Discover the reasons why every contractor should have proper contractors insurance coverage.
Being a contractor is a dream job for many people, which isn’t really surprising. After all, who wouldn’t want to be your own boss, with full control over your work hours and substantially better pay than a regular, salaried employee?
However, for all the fantastic things that being a contractor brings about, we should never forget that the job comes with a mountain of obligations. Getting contractors insurance is one of those inescapable responsibilities.
Why does anyone in the contracting business need contractors insurance? Here are five reasons.
1. Protection from claims
If any property damage or injury occurs within the area where you and your employees are working on a job, you can expect the affected party—which could be the client, the client’s family, or anyone else who enters the work area—to sue you in court. It is not uncommon for contractors to close down their business because of such claims, which can reach dollar amounts that can sometimes be prohibitive.
You can avoid all that, however, if you have general liability insurance, which will shoulder the cost of any claim triggered by an accident in the workplace.
2. Coverage for injured employees
Accidents happen all the time in the workplace. Should an employee of yours sustain an injury while performing contracting work for you, workers compensation insurance should take care of your injured employee’s medical bills and lost wages. Employers who fail to provide this type of insurance expose themselves to lawsuits from the injured workers.
3. Payment for legal expenses
More often than not, contractors insurance is also designed to pay for the legal expenses that come with being on the receiving end of claims from affected parties. Attorney’s fees, court expenses, and other legal costs are typically covered by contractors insurance.
4. Enhancement of your business’ commercial reputation
Back in the day, clients didn’t bother that much about performing background checks on contractors. As long as they have a reputation for doing excellent work or if they got referred by a friend or a family member, contractors get hired, no questions asked.
Today, clients have become so much smarter. Referrals and reputations don’t count for much these days if the contractor doesn’t have proper insurance. Customers know it’s for their own protection, as it’s a guarantee that they will be compensated fairly for any damage or injury that may arise from a project-related accident.
In other words, having contractors insurance can boost your business’ reputation and increases your chances of getting hired by the more conscientious clients of today.
5. Peace of mind
Being a contractor is great, but there will always be that nagging feeling that no matter how careful you and your employees are when doing your work, one accident could ruin everything for you and your business.
Get contractors insurance, and you can say goodbye to that nagging feeling. You will have that peace of mind that contractors who don’t have proper coverage never get.