If you are a general contractor, then purchasing liability insurance is an absolute must. Liability insurance is what covers the contractor and protects them from being responsible for a multitude of things that can go wrong on any sort of contracting job. If a contractor isn’t insured and are held liable for an employee’s injury or for damage to personal property, then they can easily see their business go down the drain from the costs that the business itself would have to absorb from the loss.
There are three primary reasons of why a contractor should make sure that they obtain a general liability insurance policy to protect their business. The first is that if a company is sued, that there are lots of costs associated with a court proceeding. Liability insurance may cover some of these costs. If a contractor is being sued over the work that they completed or something that happened at the job site, then the insurance may help cover the costs of not only damages, but also the fees of an attorney. A second reason is to protect homeowners. If an employee of a contractor gets injured and their employer does not have insurance, then that employee can turn around and sue the homeowner. Many individuals will not hire a contractor unless they are insured for that very reason. Lastly, in many states and counties, to gain a license that allows you to practice as a contractor, you must show proof that you have liability insurance coverage. Without this proof, you will not even be able to get the license that you need to operate a business.
When obtaining contractor liability insurance needham ma, there are many different things that need to be considered. This is when a contractor needs to make sure that they have an insurance agent that understands the ins and outs of liability insurance for contractors and can walk the contractor through choosing a policy that best fits their needs. The contractor needs to ask lots of questions when obtaining an insurance policy to make sure that they are getting the policy that best protects their company. For example, do you need to add blanket coverage onto your policy to cover other people besides the primary contractor. A blanket addition would provide insurance for other subcontractors, building owners, etc. A contractor also wants to make sure that they understand what the deductible on the policy is, that they are considering purchasing. Of course, before signing the final documents when obtaining a liability policy, a contractor wants to make sure that they see everything in writing before agreeing to the policy and making the first payment of premium.
Owning their own contracting business is a dream for many. They enjoy constructing something and building dreams for their customers. The last thing that they want to see is their dreams go down the drain, due to an unfortunate accident or a construction job gone wrong. Even the best contractors make mistakes and that is why purchasing liability insurance is a must for contractors.