Whether you solely operate your business or head innumerable employees, contractors insurance is highly beneficial to safeguard your business from unexpected and unpleasant circumstances and also to win more clients. If your business meets any of the under-mentioned criteria, then it would be good for you to invest in purchasing a contractors insurance.
- Your business nature is such that your clients require liability insurance.
- You work as a subcontractor under a general contractor.
- You recruit employees.
- Your business unit has valuable assets which require protection.
- Your business unit includes vehicles and automobiles.
- You or your employees drive personal vehicles to and from the office.
Why contractors insurance is very important?
- Importance for clients
Contractors who have proper insurance cover are placed in a beneficial position to earn new clients. When clients see that you have all the insurances in place, they will be convinced to opt for your products and services. They will know that they can rely on what you have to offer and this will rapidly increase sales. On the other hand, without proper contractors insurance, you stand to lose valuable clients. There are many people who will never hire contractors not having liability insurance because in case an accident occurs, they will have to pay for the damages.
- Importance for general contractors
If your business is such which provides subcontractors to general contractors, having contractors insurance will prove beneficial by safeguarding that work that you get done on the site. Moreover, many general contractors will hire only those subcontractors who have proper liability insurance. This is because, in many states, general contractors are held responsible if there are any financial damages and the subcontractors are not insured. This is why you have low chances of being recruited as a subcontractor if you do not have proper liability insurance.
- Legal importance
As per law, it is mandatory for business owners to purchase workers’ compensation. Although you may have taken all precautions and measures to ensure the safety of your employees, accidents can occur at any time without any pre-warning. In such a scenario, you can stay tension-free when you have all the necessary insurance covers which also means that you adhere to the laws in this regard. If any of your employees get injured while on the job, you will be responsible to pay their medical expenses and other expenses. Furthermore, you may have to pay a fine to the government if you do not have the necessary workers’ compensation insurance.
- Unpleasant scenario
Insurance covers protect your business organization and its operations. These are necessary for protecting your investment amount, efforts, hard work, and time in case any unpleasant situation occurs. For instance, liability insurance can safeguard your business finances if someone sues it for injury to someone or damage to their property. Without proper contractors insurance, your whole business stands exposed to innumerable risks and if you are unable to bear the amount for damages, you may even have to sell the business to reimburse the expenses.
The aforementioned scenarios make it clear why contractors insurance is highly necessary. However, do read the offer documents carefully so you do not regret your decision later on. Furthermore, ensure that you take the proper amount of coverage because if it is insufficient, you will, later on, have to bear losses even after paying hefty premium amounts.