INSURANCE COVERAGE “INCREDIBLY IMPORTANT”
by Katie Williamson, ©2018
(Mar. 20, 2018) — Every contracting business should have adequate liability insurance to protect against being sued. The better your company’s insurance is, the less likely you will be to end up in a very bad legal/financial situation. The fact is that construction is a dangerous line of work, therefore, incredibly important that you get the insurance coverage you need to avoid losing everything because of a simple accident.
What General Liability Insurance Covers
There are many different things that liability insurance will protect your contracting business from, including third-party accidents. If a family member of a client that you are doing construction work for gets injured because of an accident involving your workers or equipment, you could be in big trouble unless you have adequate coverage. There is also protection against third-party property damage to think about, which does sometimes occur with this type of work.
Getting the Best Deal on Contracting Insurance
If you want to save a significant amount of money on the insurance coverage you need for your contracting business, you will need to spend some time researching your options. The internet can be a very useful resource when you are trying to save money on this type of insurance. You should take the time to look into contracting insurance at next-insurance.com, as it could provide you with the coverage you need at the right price.
Business Owner’s Policy
Anyone who owns a contracting business should look into getting a business owner’s policy, as it offers general liability coverage as well as protection for valuable equipment and tools. This type of coverage will ensure that you get compensated if something happens to your equipment, so you don’t suffer any devastating losses. Contracting work often requires a lot of very expensive equipment, and it does sometimes get damaged on the job.
Insurance for Vehicles
You will also need to look into protecting your company’s vehicles with the proper insurance coverage. If you don’t want to spend a lot of money on vehicle repairs or replacements out-of-pocket, paying for this type of insurance is certainly worth the monthly fee. Most insurance companies offer this kind of coverage, so you shouldn’t have any issues with getting it for your business.
Specific Insurance for Trade Companies
A vast majority of insurance companies offer coverage for specific types of contractors. Whether you do painting, electrical work, plumbing, or something else entirely, you will need to spend some time looking into the policy options you have before deciding on one in particular. By getting a trade-specific policy for your business, you will be able to protect it even more effectively from lawsuits and expenses that could arise at any time.
Preserve Your Business
It only takes one accidental injury lawsuit to take your entire contracting business down, which is all the more reason for you to look into adequate insurance coverage. Contractors of all kinds are sued every single day, and many of them end up going under because of it. If you want to preserve your business for the long term, it is important that you make a point of looking into getting this coverage as soon as possible. Each day you are uninsured is a disaster just waiting to happen.
Types of Insurance
There are numerous types of insurance that contracting businesses will need to look into before making a final decision.
There is professional liability coverage, which offers protection in the event that an employee makes some sort of mistake that negatively affects a customer of yours.
Excess liability is meant to prevent huge losses for your business in serious situations that would otherwise cost you a lot of money. This type of insurance can only be applied to an underlying policy, and you won’t be able to use it for any other policy you might have.
Bond insurance will guarantee each of your clients that the projects you start will be completed in accordance with the contract they sign. If you are unable to finish the project for any reason, a surety can step in to take over. This kind of insurance can be especially helpful for contracting companies that are just starting out and have limited funds.
When you take the time to look into the various types of insurance that are available for your business, you will be able to find the right one to match your needs exactly. The last thing you want to do is to select the wrong insurance policy.
It is incredibly important that you get the appropriate type of insurance coverage for your business and plenty of it. A lot of contracting businesses end up going under completely because of lawsuits from injured workers or clients. In order to avoid this, you will need to make a point of getting the right coverage immediately.