If you’re a contractor, the warmer temperatures of spring are your cue to get started on home renovation projects you’ve been planning with customers.
You probably have a long checklist of things to go through. Finding qualified laborers. Making sure your equipment is in running order. Getting the supplies you need. Managing costs.
Securing contractor’s insurance should be high on the list.
Every business needs insurance, and contractors particularly do. This is primarily due to the dangerous and fluid work conditions where you must worry about everything from accidental damage to the homeowner’s property to on-the-job injuries.
Indeed, contractor’s insurance serves a variety of important functions:
1. Property damage. General liability insurance will cover any accidental damage you cause to your customer’s house. If you spill paint on an expensive carpet, drop equipment or supplies on an outdoor deck, or break a pipe causing water damage indoors, you could be held liable. Insurance will protect you from those claims.
2. Worker injuries. Construction job sites are full of risk for your workers, from slips and falls to errors in using equipment and tools. Obtaining workers compensation will ensure your workers – and your business – are fully protected.
3. Other injuries. You need to be aware of the risk of injuries not just to yourself and your employees but also to others. Remember how many hazards there are on your job site. Think about what would happen if a customer or delivery worker trips or falls or is injured by falling materials or malfunctioning equipment. This is where general liability insurance would kick in.
4. Completed operations insurance. If you do work that later needs additional repairs, you could be on the hook for that. For example, if a pipe you installed stops working, you could be held liable. Completed operations insurance will cover these unanticipated costs.
5. Auto insurance. If you have a van or truck you use for work, you need to insure it just like you do for your personal vehicles. This is especially important if you aren’t the only one driving your work vehicles.
6. Property insurance. If you have a garage or building where you store heavy equipment or materials, contactor’s insurance will cover any losses.
7. Business benefits. Having contractor’s insurance will also have the added benefit of helping your business, as many of your customers may be reluctant to hire you if you don’t have reliable insurance.
Being a contractor is a risky business in many ways. Getting contractor’s insurance reduces those risks, allowing you to focus on the work itself. Here at The Insurance Center, contractor’s insurance is among the lines of commercial insurance we offer. Please contact us at one of our offices for a quote or any questions you might have.
Note: Sources included Industry Today, Nerdwallet, and Landes Blosch.