When it comes to picking the right contractor for a construction job, a client will consider a number of factors before shaking hands and getting things underway. From price to schedule, manpower to the scale of the project, there are numerous things that have to be looked at and weighed out. But one factor that plays an important role in a contractor landing a job or not is whether or not they are insured, or insured enough, to pick up a new contract.
While it may be cheaper for the client to select a contractor who has no insurance or limited coverage, going these routes is really risky, and not just for the client. Not having contractors insurance coverage, such as specialized workers compensation insurance, can completely sideline not only a project but the contractor’s business and the employees on board. Here’s a look at why it’s important for contractors to carry their own insurance.
More Insurance, More Contracts
Getting one job is great, but having a steady revenue stream should be the main goal. One way in which this can be improved is to carry contractors insurance. Not having insurance could be the deciding factor for potential clients as they will look to see proof of general liability insurance and workers compensation insurance before they sign on to any agreements with contractors. By having the right insurance and amount of coverage in place, the chances of having steady clients could be improved.
Protecting Against Accidents and Injuries
On any construction site there are a number of risks and liabilities waiting around every corner. Taking precaution and wearing a hard hat may not be enough to protect against the plethora of injuries that can befall any employee at any time. That’s why having the right contractors coverage can help to protect a business against damages and personal and advertising injuries up to certain limits. Policies may also cover medical payments for individuals injured because of business operations, no matter who’s at fault.
Workers Compensation Insurance
If contractors have employees of their own working for them, and this is usually the case, they will need workers compensation insurance coverage just in case they experience injury or illness on the job. With this in place, a contractor’s business will be safeguarded against costly lawsuits alleging that conditions on a job site led to the illness or injury that is put in question.
Adding Coverage to Your Own Property
Having contractors insurance, like a business owners policy (BOP), is a great way to make the most of business insurance for contractors because it takes general liability and brings it together with property insurance. Disaster, fire, theft, vandalism–these are all the ways in which property insurance usually covers buildings and equipment.
About Coast General Insurance
Coast General Insurance Brokers is an insurance brokerage entirely dedicated to business owners. Our agency’s purpose is to partner with our business clients to maintain a pulse on their risks as the business evolves. We match Property and Casualty products and help mitigate claims. Our agency has a dedicated team for Commercial Insurance as well as a team dedicated to Health and Wellness benefits for any size company. Give us a call today at (805) 644-4740 to learn more about what we can do for you.