Are you a contractor or thinking about becoming a contractor? Do you know about the different types of insurance protection you need to ensure that your business is able to grow and prosper the way you want it to? If not, then you need to read up on contractor liability insurance because you need it in our sue happy society.
This insurance will help to protect you from any accidents, contractual liability, and more. You could not even imagine some of the things that have happened that have caused frivolous lawsuits that have put people out of business. Just the cost of the lawyers to defend you can be enough to put your business in the poor house.
Whether you select to cover yourself for one, two, or three million dollars you need to have liability insurance. You need to factor in how much you are at risk when choosing your insurance and your agent should be able to help you along the way. The worst thing that could happen is you have an accident, get sued, and go out of business because you did not get contractors liability insurance.
This insurance will only benefit you because not only will it protect you from lawsuits and cover some or all of the lawyer bills, but it can also protect those that work under you from accidents as well. The problem now is that lawyers are so good at what they do that they can sue over just about anything and win.
You should also make sure that any sub contractors you hire also have contractors liability insurance or at least general liability insurance. If they are carrying insurance, then your risk of liability will be reduced and so will your insurance rate. Usually the general contractor is not responsible or liable for the sub contractor’s mistakes, but if the sub contractor has a lawyer that has any knowledge of the law they can find a way to hold a general contractor liable for neglect and this is where liability insurance becomes imperative for everybody.
By Robert Watson