No matter what type of contracting venture you’re in, not having the appropriate contractors insurance puts your business at risk. For contractors, every day is a gamble. Your team and your company are exposed to a myriad of workplace hazards that may result in costly liability issues. Insurance coverage is a safety net that can shield you from future financial disaster.
Whether you’re an independent contractor or the head of a contracting company, here are five of the top reasons why you should avail of contractors insurance:
Protect your company from claims
Accidents can happen no matter how cautious or vigilant you are. Whether it’s one of your employees getting injured or damage to the property you’re working on, as the contractor, the liability is on your shoulders.
Your clients and employees can file a claim or a lawsuit against you in case of any job-related disasters in the workplace – intentional or otherwise. While some liability claims are within your means, others can be crippling or even substantial enough to drive your business to the ground.
To prevent this kind of misfortune from befalling your business, you’ll need to purchase a contractors’ liability insurance to protect you from any potential losses incurred by liability-related expenses.
Protect your employees and investments
A contractor’s insurance is extremely beneficial especially if your company handles high-risk jobs where one wrong step can result in an injury or may cost an employee his life. In most states, employers are required to get compensation insurance for their workforce. But even if the state where you’re operating does not require one, your employees deserve to be compensated. They have the right to file a claim for their injuries and not having an insurance policy to cover that could mean trouble for you.
Purchasing insurance coverage for the vehicles and equipment that you use in operations will also benefit you. As these are expensive investments, getting an equipment or vehicle insurance policy will save you from financial woes in the unfortunate chance that they get damaged.
Comply with state and legal requirements
Almost every state in the country requires contractors to carry several types of insurance coverage before they are permitted to operate. Running a contracting business without the required insurance is illegal in many areas in the country. Failure to comply with the mandatory insurance policies can get you fined and penalized, and could potentially ruin your business’ reputation.
Establish credibility and boost the business reputation
Clients nowadays are wiser and more careful. They are selective with who they hire especially when it comes to home repairs and improvement projects as they cost a lot of money. With the Internet at their disposal, smart homeowners perform exhaustive background checks and learn everything they can about their candidates.
The majority of them will only hire those with the right contractors’ insurance as this gives them the assurance that their interests are well protected. Having all the required coverage will do wonders to your reputation and increase your chances of getting picked for the job.
Peace of mind
Contracting is a pretty unpredictable venture. Things may go incredibly well today, but you never know what comes tomorrow. Having the right insurance policies will save you from unnecessary stress and help you sleep better at night. Whether it’s losses or lawsuits you’re facing, you know you’re covered!