Plenty of things can go wrong when you take on a new construction project. Contractor’s insurance is therefore an important and helpful tool to keep on hand. This type of insurance helps you pay for unexpected costs, such as support for injured employees, compensation for damaged property, and payment for legal fees and settlements. It can also provide liability protection if you make a mistake on the job. Whether you’re an independent contractor working with a larger firm or the owner of your own construction company, contractors insurance is a necessity.
Reasons To Purchase Contractors Insurance
Contractors insurance helps protect your business from a number of unexpected events that may put a strain on your finances to resolve. With the right coverage, you can retain control of your finances no matter what obstacles you find yourself facing. Here are some popular reasons to consider a robust insurance package for your contracting company.
Provides Liability Protection
As a contractor, you can find yourself liable for a number of legal concerns. These can include third-party injuries and property damage sustained while you work on a project, including injury to a customer or their property. Liabilities can also include libel and slander, which may occur through your advertising or through what you say about your customers. Good contractors insurance will include general liability coverage, which helps pay for legal fees, settlements, and damages in the event of a lawsuit related to these types of injury.
Covers Employee Injuries
Strong contractors insurance also covers injuries that happen to your employees. Construction work can be dangerous, and your employees may find themselves constantly at risk of injuries large and small. Workers compensation insurance will help employees cover their medical expenses and some lost wages if they are injured while working for your company. This type of insurance is typically required for business owners. Disability insurance, which is not generally required but is highly recommended, can help support employees who need to miss a more significant amount of work.
Lawsuits can be costly, and the amount of money required to maintain one can impact your assets in significant ways. With a robust contractors insurance policy, you can protect these assets by using your insurance coverage to pay for legal fees and other expenses instead of dipping into your savings or selling parts of your business to afford the lawsuit. Businesses without proper insurance coverage may find themselves bankrupt or relying on owners’ personal finances to continue operations, putting a serious strain on the company and its leaders that may be difficult to overcome.
Your machinery is an essential component of your business, and without it, you’ll be unable to complete your work and generate an income. Equipment breakdown insurance and similar policies help pay for the repair or replacement of important machinery, allowing you to get back to work quickly without drawing on other resources to finance the repairs. With less time spent out of work, your company can continue to thrive and grow despite the momentary equipment setback.
Helps Attract Contracts
Clients may be hesitant to work with a contractor that does not have adequate insurance. This is because in the event of an accident or injury, the client will have a far weaker guarantee that the contractor will actually help pay for the damage that the company caused. Foregoing insurance can severely limit your potential customer base, making it more difficult to receive work and grow your company. Consider insurance an investment in your future success and an important element of your marketing strategy, and choose policies that give your customers peace of mind.
Purchasing Your Contractors Insurance Policy
Acquiring a comprehensive contractors insurance package that addresses all of the above needs can help you protect your company and see it grow for many years to come. Work with an established insurance broker to select your insurance policies and ensure that you’re receiving the best coverage for your construction company.
For more information about contractors insurance coverage or to begin assembling a policy, contact JMG Insurance Agency. The agency has been providing insurance packages for contractors in the Fairfield County, Connecticut area for more than a century and prides itself on offering simple, fast, and convenient insurance support from the moment you secure a policy to the day you make a claim and beyond. JMG Insurance Agency’s experienced insurance brokers can help you create a contractors insurance package that gives your business comprehensive coverage and security that allows you to overcome any unexpected financial situation.