Having the right contractor insurance to protect you and your business not only demonstrates professionalism but also shows your commitment to keep your client’s property safe. No matter if you are a plumber, a carpenter, an electrician or a civil engineer; you could be staking a huge financial wager by not possessing the right cover. So, what are the most important covers you should consider as a contractor? Generally, a good insurance company customizes the insurance policy for you after carrying out a full risk assessment. But, for your general knowledge, here are some points which will help you understand what you must protect. So, let’s take a peek.
Generally, there are two types of liability insurance. Through public liability insurance, you are protected against accidental damage to the customer’s property. Additionally, it can also protect you from third party claims regarding injuries caused by you or your business.
The second one is employer’s liability insurance. It is required by the law if you hire staff even when it is temporary or part time based. Site workers, especially in the construction industry, are at greater risk because of the nature of the work. If you have this cover, you will be protected from the financial exposure of employer’s liability claims.
Cover for Tools and Equipment
For carrying out contract work, contractors are usually reliant on a variety of handheld tools, power tools, machinery and equipment which they or their staff uses daily. So, if your business also uses tools and equipment and they are of any value, you need cover for them as a part of the contract insurance to protect them from thefts and other unexpected events.
Cover for Personal Accident
While being self-employed comes with many perks, it also comes with downsides. You are responsible for your absence and sick pay. One or two days off might not have that much impact but if you have broken your bone in some accident and are lying on the sofa for several weeks, it would be a great hit to your income. However, with a personal accident cover, you will be offered a set amount to substitute your weekly income in the case of an injury.
Cover for Legal Expenses
Regardless of how much careful you are, accidents happen and things can go awfully wrong in many ways. In case you are being dragged to the court, the legal costs can be very high in defending yourself. Commercial legal protection cover takes care of such costs and can also guard you in a number of other scenarios as well. It also protects you against employment disputes as well as commercial tenancy disputes.
Insurance for Commercial Vehicles
Most of the contractors use vehicle such as a van to get to and from the work site and carry equipment. So, whatever you do, if you use a vehicle for your business purposes, you also need commercial vehicle insurance to protect you from the cost incurred due to damage if you happen to have an accident on the road.
These are the covers which a contractor should have for protection, if apply. If you are also into contract business, ensure that you are completely protected with comprehensive contractor insurance policy otherwise ignoring this might cost you a great fortune.