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3 Reasons You Need Contractors Insurance

With the introduction of DIY products and ambitious projects done on Pinterest, more and more people are trying their swing at becoming a contractor in their spare time. Working as a contractor seems to be more fun than working a regular 9 to 5 job. Being a contractor means you’re the boss. You could own your own business, have business partners, or just practice contracting as a fun hobby. Being the boss means that you are on top! When you are the boss, you will have better working conditions, you set the start time of the workday, and there is no HR officer who will take notes while glaring at you. Being a contractor, you’ll need some type of insurance for your business. Good thing there is a type of insurance just for contractors! But, why do you need insurance? Below are listed 3 great reasons why you should invest in getting contractors’ insurance.
 

  1. Claims Protection

When you are a contractor, you are solely responsible for the area in which you do your work. If someone were to get injured within your area because of an accident or plain negligence on your part, you can expect that person to file a claim against you. This same responsibility applies to your employees if they were to cause any type of accidental or, in the worst case, intentional damage to the property area you are working within. Why do you need this protection? These types of claims could be big enough to completely shut down your business if you’re forced to pay for the damages out of pocket. To avoid the potential of disasters like this, you should consider taking a general liability insurance policy for contractors. Whatever potential financial liabilities you end up with, you can be reassured that the general liability insurance will cover them and help to keep your business from shutting down.
 

  1. Protection of Your Employees

As we know, workplace accidents happen, they’re accidents. High-risk contracting jobs like roofing are a step away from accidents happening. One wrong step while working on a roof and the accident could lead to a worker sustaining an injury. The injured employee has every right to file a claim against you, they were hurt while working on your job site. They can file a claim for their pain and lost wages due to recovery time. If you don’t have worker’s compensation insurance it’ll be a path of trouble. Almost all states require employers to get workers’ compensation insurance. This coverage is a win-win for all parties involved. Injured employees can get all the benefits that are due to them and it wouldn’t matter who is at fault for the unforeseen accident. On top of that, you will be spared from the cost and hassle of a potential lawsuit that the injured employee could have filed against you.
 

  1. Payment of Legal Costs

Here is a big one. Did you know that uninsured contractors often get hit hard by attorney’s fees, court expenses, and other legal financial expenses when some films a claim against them in court? In case of an interested party suing you in court, your contractors’ insurance policy should cover the legal costs that a lawsuit may entail. This is a piece of mind when you go to work a new job with a new client.