7 Benefits of Having Contractors Insurance

7 Benefits of Having Contractors Insurance

Contract jobs aren’t easy; the work is hard and labor-intensive. It’s not uncommon to be injured while you’re on the job. Over two hundred people per year receive fatal injuries while doing construction labor alone. 

We didn’t bring this up to scare anyone but rather highlight how difficult contract jobs may be. Sometimes, a job doesn’t go as smoothly as you’d like and injuries and mishaps occur – this is what contractors insurance is for. 

Contractors insurance is a security blanket if a worker is hurt or client and company property is damaged. We’ll go in-depth about the seven benefits of having contractors insurance and the types of insurance you should have. 

You Meet Legal Requirements

Some states require contractors’ insurance. General contract insurance covers property damages, worker injury, and construction mishaps. Check state laws if you’re unsure your business needs an insurance policy.  

Contractors’ Insurance Protects Your Business

While being insured in some states is a requirement, the truth is, contractors’ policies are a convenient tool to have. Business insurance keeps contractors safe from liabilities. Here are insurance options to consider: 

  • Workers compensation: medical and wage income while injured or sick
  • Commercial general liability insurance: protects from multiple claims
  • Automobile liability insurance: covers damage done to vehicles 
  • Commercial umbrella insurance: extra insurance protection

You may need all of these types of insurance in some states. Other areas may only have specific requirements. Look into your location’s laws to make sure you’re legally covered. 

Insurance Protects From Injury

Workers’ compensation provides medical and salary wages while injured or sick. A business that doesn’t have workers’ comp can pay hefty fines. Parties that refuse to provide this insurance can even face prison time. 

A company may even lose the right to conduct its business. All states in the US require jobs to offer workers’ compensation, although the exact benefits differ from state to state. 

You Can Avoid Seeking Compensation From Clients

It’s not unheard of for a contractor to sue a client if they’re injured while on the job. The worker isn’t guaranteed a victory, though. There has to be proof of injury on the part of the client. 

If the worker’s hurt is proven to be the client’s fault, there’s a chance they (the worker) will win their case. Compensation isn’t awarded if a client can verify the injury is the employees’ fault. 

Insurance Covers Property Damage

Client and business property can get caught in the contracting crossfire. It’s not too uncommon for items to become damaged by construction. Luckily, insurance can reimburse the client’s broken porch railing.

Your Has Staff Protection

A general contractor with others under their employ may want insurance. Accidents happen, but you can have peace of mind knowing that workers have coverage. Contractors’ insurance is worth the cost to protect your staff. 

You Can Keep Business Assets Protected

Business insurance offers safety if an outside party says that you or a worker is responsible for injuring them. Medical expenses are costly and can cut into your profits. Worst-case scenarios may see you selling off business assets.

Understand Your Contractors’ Insurance Options

There are plenty of significant perks to having contractors’ insurance. One of the main advantages is keeping your business out of trouble. Contractor insurance also ensures workers have funds during their recovery. 

If you found this article helpful, there are plenty more on the website. You can take your pick out of many informative topics on the blog. You can browse through various other business subjects.