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Covering Your Bases: When Do You Need a Contractors Insurance?

property development

As a tradesperson, you’re an important part of our society; it’s thanks to you that the living space that we occupy is functional, comfortable, and in a good shape. However, due to the very nature of this business, you often find yourself in a position where you’re self-employed, and when taking on new jobs, there’s no company or organization to cover your back should things go wrong and litigation is just around the corner. The only way to avoid a financial disaster of colossal proportions is to get a contractors insurance, and you’ll quickly see why.

Your livelihood is at stake

In today’s world, people are rather impatient, and very much trigger-happy when it comes to suing someone. Many tradespeople avoid signing up for liability insurance for contractors, thinking they’ll simply pay for the litigation costs should the need arise, not realizing that everybody makes mistakes and not everyone will tolerate them.

The problem with this mentality is that once litigation is in full swing, it’s hard to stop it, and you may very well go bankrupt just trying to pay for your attorney (without even mentioning what will happen if you end up losing in the end). All in all, it’s much better to get a contractors insurance in advance than having to worry about what could potentially happen, and your peace of mind is worth it.

A single claim against you could harm your reputation

As a self-employed tradesperson, reputation is everything. It certainly has the power to make or break your business. Without it, acquiring new clients is an uphill battle. It takes so much time and effort to build it up, all while a single claim against you has the potential to take away the fruits of all your hard efforts, tears, sweat, and pain. Is it worth the risk? Hardly.

Just think about it this way; by placing yourself in the shoes of the customer tasked with finding a contractor, who would you rather hire? The tradesperson who is licensed and insured or the one whose reputation has a black mark on it? Since the customer’s property is also protected when having public liability insurance, the answer is self-explanatory.

You can get injured on the job

Depending on your profession, there are various pitfalls that await you on the job:

  • As a plumber, you are susceptible to eye infections due to often having to work in an environment where bacteria are widespread and prevalent. Since you have to deal with pipes that can either be too hot or too cold, you may get your hands burned if you aren’t careful enough.
  • As a builder, you often work with dangerous tools and machinery and a mere moment of lost focus can easily lead to an injury like striking your hand with a hammer. You are also at risk of falling from roofs, scaffolds, ladders, etc., which is a common type of injury in this line of work.
  • The same applies if you’re an electrician; you’re also at risk of sustaining a fall. Also, you may get electrocuted or suffer thermal burns when servicing various devices.
  • Please keep in mind that similar professions also have to deal with workplace injuries that are much more common than you think.

In the end, getting a contractors insurance is all about you and your own wellbeing. Your job requires you to work with potentially dangerous tools, and the working conditions can be even less forgiving. By getting injured on the job, you could become temporarily unable to undertake new contracts, thus having your hands tied when it comes to paying your monthly bills.

As you’ve probably been able to guess, a contractors insurance covers you in situations such as these, and won’t leave you hanging while you recover in peace. Additionally, any third party injuries occurring on the job are covered by it as well, so everyone can feel safer.


At its best, being an independent tradesperson means being your own boss, making your own schedule, and enjoying a life of freedom. By seeking the right type of insurance, you’ll be able to focus on your work without having to stress out over all the what ifs and hypothetical scenarios involving an accident.

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