Five Reasons Why You Must Establish Proper Insurance as a Contractor

Being in the construction industry comes with many different responsibilities. You are building various structures and potentially even repairing dwellings. There is a type of contractor insurance designed to cover contractor-type work and all the elements that come with it. Since it is a very hands-on job, you must remember that a standard business insurance policy might not be enough to cover everything. Getting quotes from an agent who can show you policies that protect your business is a must. 

1. Liability Limits

No matter what type of construction job you are assigned, there is always going to be a client relying on you to do your very best work. For whatever reason, if you do not meet their needs, there is the potential for some upset. If you cannot work to resolve the conflict with them, your insurance policy is designed to protect your business at a standard limit, which is typically $1 million.

You take on a lot of different responsibilities when you are working as a contractor, but you will also be able to perform your best knowing you are covered in case an issue arises with your client. There is also the potential of having issues arise with suppliers or other relevant businesses you might need to contact while working in the industry. All of the legal protection still applies in these instances.

2. Injuries and Accidents

Getting injured while working in construction is always going to be a concern, but having insurance designed specifically for contractors will assure you that your employees will be taken care of. The last thing you want is for a member of your team to be hurt or out of commission, so you want to double-check that your insurance policy will cover this.

You should always ask your insurance agent if you have any questions regarding your policy and exactly what it will cover. It is best to know this information upfront rather than hoping it will cover a situation. The last thing you want is to file a claim that is not covered by the policy, so ask all the questions you need. 

3. Business Reputability

Keeping up a stellar reputation is one way you can help your business grow. When people hear word-of-mouth advertising that you are a reputable construction business, they will be much more likely to hire you for any projects they need to complete. This is great because it indirectly serves as a form of marketing while keeping your business and everyone involved safe.

Knowing you are covered at the correct level and establishing yourself as a safe business will result in more people that are likely to write reviews about your company. As you earn these great reviews, this builds up your reputation in the industry. Those looking for contractors will see that you are a trustworthy company that will get the job done correctly and safely.

4. Protecting Machinery

A contractor will use various machinery and equipment to complete each project. This can be an extensive range, so ensuring your contractor insurance covers these machines is crucial. Certain policies are designed for this type of work, so ensuring your agent understands exactly what you do and what equipment you use will allow them to shop for the right policy.

A schedule of equipment is typically attached to your policy that lists the type of equipment and how much it is worth. Through this schedule, you can keep track of what machinery you use, and your insurer is also aware of how much they must cover in case of a loss.

5. Slander and Libel

It is impossible to always keep everyone happy, even when you do a great job on a project. Sometimes, individuals will get frustrated and try to talk openly about their frustrations. This can damage a business that is not adequately protected because it can cause your reputation to decline. Insurance policies are helpful in this instance because they protect against slanderous or even untrue statements that others make regarding your business practices or performance.

Your job is already full of many different responsibilities, so knowing you are in good hands when you are adequately insured can be great peace of mind. An insurance policy is meant to take care of all your needs while you focus on the important task of running a construction company and managing your subcontractors effectively. If a situation arises, you will always have a licensed insurance agent ready to help you.

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