Obtaining proper business insurance is perhaps one of the most important things that any business owner can do. As the owner of a construction company that offers services in an array of locations, it is easy to assume that you do not need the same types of insurance as other business owners. However, any type of contractor should obtain a contractor's insurance policy to protect them from certain situations on the job. Here's a look at some of the situations when having contractors' insurance could really help.
You drop a piece of lumber on a client and cause them injury.
A client comes out to discuss the progress of the project. Even though they really should not be in the construction zone, they get injured because a dropped piece of lumber falls on them. Even though the client came onto their property during the work and created the risk, it is still your responsibility to make sure they stay safe while in the field. Therefore, you could be held liable for their medical bills and any pain and suffering if the client takes you to court. Third-party injury claims are covered with a contractors' insurance policy, so you would be appropriately protected.
A concrete form busts and causes damage to the property owner's pool.
You install a concrete form to hold a new foundation for a pool house. After leaving for the day, the form busts, and, unfortunately, the wet concrete spills out into the in-ground pool and causes thousands of dollars worth of damage. With a good contractor's insurance policy in place, you will have coverage for these inadvertent instances of property damage. Therefore, you can file a claim and get the costs of repairs covered so you do not end up in court facing a lawsuit.
One of your subcontractors gets injured while on the job.
If you only ever hire subcontractors to complete your construction projects, you are not required legally to carry workers' compensation insurance. However, that does not mean that you cannot be held responsible if a subcontractor is injured while they are working at your job site. For example, if you bring in a subcontractor to help install the plumbing because this is out of your field of expertise, and that individual breaks their leg while doing the work, you could be held liable. Your contractors' insurance coverage would include protection during these situations.
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