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. Among the key priorities of any contractor should be ensuring that anyone involved in the project is safe and secure. However, regardless of how contractors try to keep everyone safe, injuries and workplace accidents still happen from time to time. Even in construction sites with very stringent regulations on matters of safety, accidents could occur and land a contractor in legal jeopardy. This is why every contractor requires contractors’ liability insurance no matter the project they are working on. Below we look into why contractors should have contractors’ liability insurance.
On matters of coverage, contractors could benefit a lot from contractors’ liability insurance. By having good insurance coverage, contractors can leave any medical costs to their insurance provider in case any third parties get involved in injuries or accidents at the workplace. Additionally, the insurance provider is responsible for covering any damages caused to the property as a result of the accident. For instance, property could be damaged by construction workers due to accidental mishandling of tools and equipment. In such cases, the insurance provider is responsible for replacing or fixing the damaged areas. Some extent, the insurance should also cover defence fees if any. Therefore, if a contractor is taken to court following a lawsuit, the insurance provider should cover this as well.
By having insurance, a contractor is better positioned to secure future jobs. Contractors willing to offer their services are nowadays required to provide proof of their liability insurance. While this used to be optional in the past, it is now some kind of an unspoken rule. Most government agencies and general contractors alike require possession of liability insurance. Contractors not able to provide proof of their insurance stand high chances of losing future job opportunities.
Contractors that question the costs of being insured should focus more on the benefits to be derived from insurance. The costs involved vary mostly based on the kind of insurance obtained and the extent covered. Another factor that determines the cost of insurance is the risks that accompany a business. For example, contractors that specialise in areas of significant risk such as roofing contractors will often have 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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