The Benefits of Having Contractor Insurance
Contractors are charged with the responsibility of managing their respective construction sites. Contractors are required to supervise everything and ensure all aspects of the project plan are going on well. Among the key priorities of any contractor should be ensuring that anyone involved in the project is safe and secure. 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. Even in construction sites with very stringent regulations on matters of safety, 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.
In terms of coverage for contractors, nothing beats contractors’ liability insurance. 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. Also, any damage caused to the property as a result of the accident can be covered by the insurance provider. For instance, due to accidental mishandling of tools and equipment, construction workers could damage property. In such cases, the insurance provider is responsible for replacing or fixing the damaged areas. Also, in case of defence fees, the insurance provider should cover this as well to some extent. Therefore, if a contractor is taken to court following a lawsuit, the insurance provider should cover this as well.
As a contractor, you can also secure future jobs by having insurance. If you wish to apply for a job and provide your services, you will often be required to provide proof of liability insurance. While this used to be optional in the past, it is now some kind of an unspoken rule. Possession of general liability insurance is not only required by government agencies, but also most general contractors. Failing to provide proof of this could make contractors lose on future job opportunities.
Contractors that raise eyebrows on the costs of being insured should contemplate on the Benefits of having it. Generally, the type of insurance and extent of coverage determine the costs accompanying insurance. 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, worry not 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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