3 Reason To Have Contractor’s Liability Insurance

There’s a reason everyone you see at a construction site almost always wears protective gear, such as hard helmets and safety shoes.

Construction sites are extraordinarily action-packed and inherently high-risk zones. These sites will require more than just protective clothing for the workers to be optimally safe.

Knowing that injuries and damages are likely to occur at some point in any of your contracted jobs can be a source of stress. However, with the right policy, you can limit the impact of the accidents on you, providing a sense of relief and peace of mind.

While there are different kinds of business insurance policies your company should consider having, this article will focus on General Liability Insurance. Let’s go through some of the reasons it’s a good idea for your company to get one.

Why Contractors Need Insurance

The first reason is pretty apparent, but it deserves as much emphasis as possible. The last thing you want as a contractor is to end up footing a large bill that you could have avoided by merely having a little foresight.

In the construction industry, accidents or miscalculations are a daily possibility, not a remote chance. There’s so much heavy-duty machinery, scary heights that workers have to climb, and a lot of work, which amounts to tired people, and exhausted people are more prone to making mistakes. In the end, it’s not a matter of whether an accident will happen, but when.

So, your need for protection in such events should not only be anticipated but also planned. Work with an experienced contractor’s insurance broker who can help you find the protection you need for your business. With their help, you can get a General Liability Insurance policy that will cover:

• Expenses for property damage claims against your company
• Medical expenses if someone is injured at work
• Damages that a product your company installed might cause
• Advertising injury claims against your company
• Administrative costs for the handling of the covered claims
• Court costs, judgments, and settlements on claims

In general, this coverage helps protect you and your business from liabilities that may arise from accidents involving other people and properties that are not necessarily your employees or property.

Interacting with clients and other parties always carries risks. It’s essential to anticipate these risks and have a plan in place to address them. Failing to do so can lead to financial strain or damage to your company’s reputation if you can’t cover the costs of accidents that harm your clients or their property.

Make Your Bids Stronger

There’s competition in almost every industry, but this competition is more direct in the construction industry. Your business will have to submit bid documents that compete against a pool of other bids from other construction companies.

Your company’s case will have to prove that your proposition is better than the rest. To gain this competitive advantage, a good place to start is to ensure your company is mitigating risks.

For contractors, having General Liability Insurance goes a long way in helping them get and maintain clients.

It Is a Requirement By Law

In the end, it’s not a matter of choice whether your business should get General Liability Insurance or not. It’s a federal requirement for contractors. Yet, it’s still essential for you to know why it is a requirement that protects others just as much as it protects you!

Understanding the different requirements based on where your construction company is located empowers you to be savvy about the laws governing your business, making you feel knowledgeable and in control.

Make Safety Your Priority

Building contractors in the U.S. require liability insurance to protect their businesses, fulfill legal and contractual obligations, and maintain their credibility with clients.

Financial protection from accidents and lawsuits is just one reason why, as a contractor, you can’t afford to go without insurance against accidents.

Property damage caused by construction work, and if the unforeseen happens – i.e., someone is injured without the contractor’s liability insurance, your business may fail.

Just because an accident hasn’t happened doesn’t mean you should always count on that luck. When an accident occurs, having General Liability Insurance will be your business’s significant advantage. It’ll save you from losing a massive chunk of your company’s money in one go and even from potentially going broke.

If you’re looking for ways to propel your contractor business to the next level, make sure your company has an up-to-date and consistent policy that can help you gain the trust of new clients and win new bids.

Paying for premiums—an insurance policy should be a crucial part of the growth you’ve been planning for your company.