7 Reasons Why You Need Contractor’s Insurance
Owning a contracting business comes with a string of obligations, legal responsibilities, and financial risks. Taking out a policy from a contractor’s insurance company can help you protect your business, staff, and clients. Sadly, many businesses across the U.S are underinsured or not insured at all.
According to Marshall and Swift/Boeckh, 75% of U.S. businesses are underinsured. Additionally, 40% of small business owners have no insurance at all. Insurance can help cushion the business from upheavals caused by natural disasters or legal issues. The premiums that you pay to the contractors insurance company may only be a fraction of the total cost of trying to stay afloat after misfortune strikes.
Here are seven reasons you should consider taking out a contractors insurance plan.
1. Protect Yourself
Most professionals decide to engage a contractors insurance company to receive coverage to protect themselves and their business. Accidents are hardly a rarity in any line of work. A professional liability policy protects you from claims involving alleged negligence, unintentional intellectual property violations, errors, or omissions.
2. Help Your Business Stay Afloat
Lawsuits can be costly. A general contractor’s indemnity can help protect your business from any accidental damage that occurs to your client’s property. Claims filed against your company can run your business down if you have to pay them out of pocket. The contractor's insurance company policy can help keep your business afloat by providing a payout in the case of an expensive accident.
3. Safeguard Your Employees
Workplace accidents happen, especially for high-risk contracting jobs such as roofing, construction, and electrical services. Your injured employee can file for compensation for injuries sustained while at work. A worker’s compensation plan from contractors insurance companies can help cater for their compensation for medical bills, pain, and lost wages.
4. Pay for Your Legal Costs
Unsatisfied clients, disgruntled workers, or any other party may sue you, kickstarting a lengthy court process. Attorney fees, court expenses, and other legal costs can quickly add up. The contractor’s insurance policies can help cover the court process costs that arise.
5. Boost Your Brand Image and Reputation
Modern residential and commercial clients are quite picky about hiring a contractor. As a contractor, you may need to present more than just your portfolio. Detailed background checks enabled by the internet age may help them know if a contractor has proper insurance coverage. Savvy clients are proactively searching for insured contractors as it protects them and their properties. Making sure you have a contractor's insurance policy can help increase your odds of getting hired for contracting projects.
6. Comply With the Law
Some states may require contractor’s hold an active insurance policy before acquiring a license or permit to work. You may need to check the laws governing your specific industry within your state. The insurance policy can help you remain compliant with the set guidelines.
7. Get Peace of Mind
Lawsuits can dig deep holes in your pockets. Similar to settling claims with your own money. A contractors insurance plan can give you peace of mind that all legal fees and compensations are handled.
Contractors Insurance Los Angeles CA
Contractors insurance is critical to protecting you, your business, clients, and staff. Do yourself and your business a favor by contacting a contractors insurance company right now before it is too late. If you are looking for contractors insurance, mechanic insurance, or salon insurance in LA, call Second Western Insurance and we'll be glad to serve you.