Although working as a contractor can be lucrative, it can also expose you to a number of risks. If you don’t have the proper protection, these risks can lead to significant financial losses for your company. For this reason, it is important to invest in an appropriate contractors insurance policy.
Contractors face a variety of risks on the job. For example, if contractors cause any property damage or injuries in the course of their work, they can be held liable for all associated expenses. In the case of expensive damage or severe injuries, this can result in millions of dollars’ worth of damages. Likewise, if your equipment is damaged while you are working, you must pay to repair or replace it if you don’t have the proper insurance coverage. Furthermore, if you have employees, you will be responsible for paying for any injuries or illnesses they sustain in the course of their work.
Every contractor needs some type of insurance. Some of the most important reasons to purchase insurance coverage as a contractor include:
Liability claims can be incredibly expensive. In fact, a single successful claim against your company has the power to bankrupt you if you don’t have the coverage you need. Likewise, the attorney fees and other court-related expenses that come with a liability lawsuit can be crippling. Purchasing contractors liability insurance can protect you from all of these potential losses by covering liability-related costs.
If you have equipment and/or vehicles you use for work, purchasing the proper insurance coverage is essential. Damage or destruction of these expensive investments can force you to spend money you don’t have on repairs or replacement. Contractors equipment and/or vehicle insurance policies, however, will cover these expenses for you in the event of an accident.
State laws require contractors to carry certain types of insurance coverage, such as workers’ compensation insurance. If you don’t carry the minimum amount of insurance your state requires, you may face fines and other penalties.
It is difficult to rest easy when you know you could face expensive losses at any moment. When you have the right insurance coverage, you won’t have these concerns. Instead, you can relax knowing that you have the coverage you need to handle all of the most likely scenarios.
As a contractor, your insurance needs are unique. Depending on the specifics of your situation, you may need several different types of coverage. For example, you may need to purchase general liability insurance for contractors, workers’ compensation insurance, vehicle insurance and/or equipment insurance. To find out exactly which types of coverage you need, it is best to talk to an experienced insurance agent about your business.
Zuma Insurance provides comprehensive insurance products for business owners in the construction industry. We offer everything from workers’ compensation insurance to vehicle insurance. If you are interested in learning more about contractor liability insurance or other insurance products designed for contractors, please contact Zuma Insurance today.