Should You Get Contractor Insurance? Yes, and Here’s Why:
Construction is one of the most dangerous industries to work in. In fact, one in five deaths of workers in the United States happens in the construction industry. There are so many risks associated with being a contractor. So, it is vital that you get contractor insurance coverage to protect yourself and your employees.
Do you want to learn more about the benefits of general contractor insurance and the types of insurance for your business? Keep reading these top reasons you should get this insurance coverage for your business.
It Covers Most Accidents & Damage
One reason why you need contractor insurance is that it will cover most accidents and damage. As a business owner, you have no idea what can go wrong during a job.
Luckily, having something like contractor insurance can cover most of these issues. Many contractor insurance coverage options include general liability. This will protect you from property damage, product liability, and even slander and libel.
For example, if you are working on a homeowner's property and accidentally back your truck into their garage door, this insurance policy will pay for the damage. This way, you will not have to pay for these expenses out of pocket.
Another part of contractor insurance includes pollution liability. This covers you when you are using materials or equipment that can lead to pollution. This is important, as environmental issues can affect the reputation of your business.
By having contractor insurance, you will have each of these potential issues covered and can have peace of mind.
Offers Financial Security
Another reason why you should get contractor insurance for your company is that it provides you with financial security. If you are at fault for an accident and do not have enough insurance coverage, your business could potentially go bankrupt after a lawsuit or other legal issue.
This can make it impossible to reopen your business and could make you lose your livelihood. Even if you do not face a lawsuit, employee medical bills can quickly add up and seem insurmountable.
By having contractor insurance coverage, you will have financial security for your business and you can avoid going bankrupt. With liability insurance, you will be able to continue operating your business as usual.
Protects Your Employees
When you get contractor insurance, there are many coverage options available. These include general liability, property insurance, business auto insurance, and even workers' compensation.
Businesses are required to have workers' compensation insurance to protect their employees. By having this coverage, you can provide your employees with benefits in the event of an accident.
There are many accidents that can happen on a construction site. Some of the most common injuries include head injuries, cuts and lacerations, broken bones, and even stress injuries. To make sure your employees are protected after getting injured, you need to have contractor insurance that includes workers' compensation.
This way, your employees will have their medical bills covered as well as their lost wages if they missed work due to these injuries.
Makes Your Company More Reputable
Another important benefit of having contractor insurance is that it makes your company more reputable and reliable. When you are looking for new clients, it can be difficult to get any work if you do not have insurance coverage.
However, contractor insurance makes it easy for your clients to hire you with confidence. Because they know that they will be protected in the event of an accident, they will not have to worry about being held liable for injuries or damage that occurs on their property.
Having the proper insurance coverage also shows that you care about your business and will do what you can to protect your clients. This makes it easier to find trustworthy and loyal clients to work with.
Ensures Requirements Are Met
As a business owner, there are many requirements that you have to meet in order to have a contractor's license or to own a business. If you do not meet these requirements, you may not be able to legally work in your state.
To get your contractor's license, you need to show proof of insurance, offer financial statements, show work experience in a related field, and more. Without insurance, you will not be able to own your own business and you may lose out on the opportunity to expand your company.
By having insurance coverage for your business, you will meet each of these requirements and will be able to legally operate your own business.
Covers Cost of Legal Defense
Finally, some types of contractor insurance will cover the cost of your legal fees. If you are getting sued by a client or past employee, you will have to pay any legal fees, even if you win the case. These can cost tens of thousands of dollars, depending on the damages.
Often, these legal costs will far exceed your contractor insurance cost, so it is best to have insurance coverage to protect you during legal issues.
By having contractor insurance, you will be protected in these situations and will have help covering the cost of your legal defense, whether you win or lose your case.
Need Contractor Insurance Coverage?
Having business insurance as a contractor is not something that you cannot live without. Not only will it protect you in the event of an accident, but it will also make your company seem more reliable and it may even be required in your state.
If you are looking for the best contractor insurance coverage, Central Carolina Insurance Agency can help! We specialize in contractor insurance and will help you with anything from general liability, property, workers' compensation, and more.
Contact us today to learn more about our coverage options and to get a free quote!