Why Contractor Insurance Is Important
Most contractors are charged with the responsibility of the construction sites they work on. Contractors are mandated with the responsibility of ensuring all aspects of the project are going according to plan and supervising everything that goes on at the construction site. The security and safety of all the people involved in the construction should be a contractor’s top priority. The only issue is that no matter how much a contractor does to ensure everyone stays safe, injuries and workplace accidents still have a chance of occurring. No matter how stringent the safety regulations of a construction site are, accidents could occur and land a contractor in legal jeopardy. Hence, all contractors should seek contractors’ liability insurance to cover them in case of any unforeseen events. Below we look into why contractors should have contractors’ liability insurance.
Contractors liability insurance has plenty of benefits for contractors in terms of coverage. Contractors with good insurance coverage have their medical costs covered by insurance in case any third parties get injured or involved in accidents at the construction site. Additionally, any damage caused to the property should be covered by the insurance provider. For example, workers at the construction site could accidentally mishandle equipment leading to damage of property. Whenever this happens, the insurance provider should cover all the costs needed to replace or fix the damaged areas. The insurance provider should also cover defence fees to some extent in case they arise. Hence, if a contractor gets taken to court, the insurance provider should cover them.
As a contractor, you can also secure future jobs by having insurance. Contractors willing to offer their services are nowadays required to provide proof of their liability insurance. In the past, providing such proof was optional however, things have changed now and it has become a rule. Possession of general liability insurance is not only required by government agencies, but also most general contractors. Failure to show proof of the same leads to high chances of losing future job opportunities.
Contractors that raise eyebrows on the costs of being insured should contemplate on the Benefits of having it. Generally, the costs you will incur depend on the kind of insurance you get and how much you are covered. Another common factor that affects cost is the risks that accompany the nature of a business. For instance, contractors specialised in risky areas such as roofing contractors will have significantly higher costs of insurance. However, this should not be a big deal since the coverage is usually better. Since there are plenty of insurance providers to choose from, at the very least go for an insurance provider with a B rating.
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