Contractor Liability Insurance
It is extremely important to have liability insurance coverage as a contractor. An accident or carelessness on the job can cause injuries to homeowners and bystanders. Poor communication or a misunderstanding with a property owner, or neglect to properly complete a job can possibly lead to a lawsuit.
No matter what unpredictable event may happen at your job site causing thousands of dollars of damage, you need to protect yourself and your business. This is just as important for a small business run where the owner is a sole-proprietor as it is for large company with many employees.
The purpose of liability insurance is to help protect you and your business from job-related problems that could possibly put you out of business. It is critical for any contractor to have, and is actually required by many states in the United States in order for you to be a legal contractor.
Be sure to research the contractor laws in your state to see what your requirements are.
A liability insurance policy can protect you in a number of ways:
- Personal injury: This involves slander, libel, and other types of damage to a person’s or business’s reputation.
- Bodily injury: This deals with protection in case of any job-related injury to a non-employee.
- Medical payments: This can help cover medical expenses incurred because of someone injured at your workplace.
- Advertising injury: If your customer claims a loss due to any products or services you have advertised.
- Independent contractors liability: Independent contractors you have hired should have their own liability insurance, but this adds another level of protection.
Depending on what type of work you are doing (construction, painting, roofing, masonry, landscaping, home repairs), your options and prices for liability insurance will vary. Be sure to meet with multiple insurance agents to find the best policy and price for you. Liability policies for some types of contracting work such as roofing may cost slightly more than other businesses because of a higher risk.
You need to make sure you have proper coverage in case of any unforeseen disaster. You should consider a minimum $1,000,000.00 umbrella policy. Most major lawsuits will not be cheap.
If your business will have employees, you should also discuss your options for Worker’s Compensation, to help protect yourself in the event of injury or death of an employee.
Most states require you to purchase a bond and General Liability Insurance to obtain your license. We work with ContractorsLiability.com because they’re the one-stop-shop for General Liability insurance and are able to get online quotes in all 50 states. Learn more >