Contractors insurance is a comprehensive coverage plan aimed to protect contractors while they conduct business. Having coverage minimizes the risk to the contractor's business by shifting it to his insurance company. This policy provides a safety net if an incident occurs on the job.
- Most contractors deem insurance necessary. There are different types of coverage available to supplement general liability to broaden a contractor's protection. Other insurance policies include surety bonds, workers compensation, pollution liability, property liability, builder's risk, railroad protective liability, owners and contractors protective liability, and products and completed operations coverage. A contractor may be required by law to carry insurance, depending on the state of operation.
- Having this insurance gives contractors a peace of mind, knowing that they can do their jobs and not worry about losing their business if something goes wrong. If something unfortunate happens, their insurance company works on their behalf by providing coverage for legal fees and conducting their own thorough investigation. This ensures the claims made against the insured are with merit. Buying insurance provides contractors an opportunity to secure more projects due to the protection it grants the company hiring those services.
- Contractors insurance protects the business by paying for damages to property or medical costs for an injured person that occurred on the job. In return, the contractor pays a premium that transfers the responsibility of paying for a claim to an insurance company. The type of work and risk associated, and the coverage amount applied for, is taken into consideration when an insurance company issues a premium offer.
- Even though this insurance is optional, contractors may find it hard to secure work without it. More and more job offers come with the condition that the contractor can guarantee his work or pay for the losses occurred if something goes wrong. Contractors have even been cited for a breach of contract because they weren't able to produce their certificate of insurance in a timely fashion.
- This insurance can be very expensive for contractors. Weigh in the facts of the risks of the projects undertaken--and the coverage amount required, in some industries averaging about $2 million--and the premium payments can be unaffordable. Contractors are urged to do research before buying any insurance policies from any carrier. They are advised to check carriers' ratings and ask other contractors who are working in the same area which companies they use or recommend.
评论