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. A matter of top priority is ensuring that everyone that takes part in the construction is safe. 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. Contractors could land in legal jeopardy, regardless of how strict the safety regulations of their construction site are. Therefore, contractors seeking to mitigate any unforeseen events should seek contractors’ liability insurance. 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 are rest assured that in case any third party gets injured or involved in an accident at the workplace, the insurance provider will handle any accompanying medical costs. Additionally, the insurance provider is responsible for covering any damages caused to the property as a result of the accident. For example, workers at the construction site could accidentally mishandle equipment leading to damage of 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. 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. Proof of liability insurance is nowadays a requirement if a contractor wishes to offer their services. This was optional in the past however, it has become somewhat of an unspoken rule now. 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. Generally, the type of insurance and extent of coverage determine the costs accompanying insurance. The risks accompanying the nature of the business are also other factors that determine the cost of insurance. 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.