Do you want to purchase contractors insurance? Purchasing contractors insurance ensures that your business gets covered against construction risks, for example, damage to vehicles on site, injuries to your workers and also damage to homeowner’s property.
Insurance companies guarantee to pay you in the case of accidents or injuries in return for monthly or annual premiums. In this guide, we look at 6 benefits of purchasing contractors insurance in detail.
- Contractors insurance ensures that your employees have coverage’s against injuries, for example, worker’s compensation insurance. Jobs such as roofing require that you have this type of insurance.
- That’s because it requires them to climb on roofs. Keep in mind that your employees are the most important part of your business.
Business Property Protection
- As a contractor, you are also liable in the case that damage occurs to homes or business premises while carrying out repairs.
- Therefore, it’s important that you purchase general and business liability insurance. That ensures that you don’t have to close your business as a result of lawsuits.
- Many homeowners will require that you show them proof of insurance. That means that your reputation is at stake if you fail to buy contractors insurance.
- Keep in mind that insurance adjusters do not recommend contractors without this insurance to their clients. That means loss of business to you.
- Homeowners regularly face the marketing message that they will pay for damages to their homes and injuries to uninsured workers.
- That means that they know this is a must for you. Therefore, you need to counter your competitors by purchasing contractors insurance.
- Depending on your locality, you may face financial penalties out of failing to have contractors insurance. Purchasing contractors insurance ensures that you operate within the law,which makes getting licences easier.
- Manufacturers also require you to have contractors insurance. That enables them to refer clients to you.
What to Do
- Purchase contractors insurance from reputable brokers. Ensure that they have a physical address within your locality.You should also ensure that insurance brokers identify themselves. That enables you to distinguish between insurance agents employed by insurance companies,and brokers who have their independent firms.
- Avoid paying low premiums. That’s because you might end up receiving inadequate insurance compensation. It also leads to problems such as lawsuits.
- Create working relations with insurance brokers. That ensures that your insurance claims get processed quickly. Good relations also ensure that you purchase insurance that suits your type of business.
Purchasing contractors insurance should be easier using the above guide. The key points to remember are dealing with reputable insurance brokers and paying premiums that suit your needs.