All types of contractors should have active insurance policies to protect them, their workers, and their business. Insurance is necessary for covering claims and losses for which the contractor may be responsible. Insurance protects the individual contractor and the entity they have contracted with. State laws and business organizations often require a contractor to possess the proper insurance before beginning work. Types of insurance policies many contractors need include liability, workers’ compensation, and errors and omissions insurance.
Liability Insurance
General liability insurance offers comprehensive coverage for many situations. General liability covers business risks like customer injury, property damage, and even advertising injury. Any contractor can be held liable for incidents that cause damage. This type of insurance will protect your small business from high-cost lawsuits. Liability insurance is often required by the state you are operating in and will help qualify you for leases and contracts. General liability insurance protects you and your business. Your clients want you to have it because it protects their assets as well.
Workers’ Compensation Insurance
Workers’ compensation makes sure employees are covered in case of on-the-job accidents. Medical treatment, disability income, rehabilitation costs, and compensation to families for work-related deaths are typically covered by this type of policy. Workers’ compensation is necessary for the protection of employers and employees.
It is also necessary to take independent measures to protect your employees. Proper equipment, safety training and signage should always be used. Roadside construction jobs come with high risks. Type III barricades provide the best protection in traffic conditions. Implementing proper safety measures no matter what type of job site, will increase employee safety and decrease workers compensation liabilities.
Errors and Omissions Insurance
Errors and omissions insurance offers coverage for alleged professional negligence. Contractors can be held liable if something goes wrong during their contract period. This type of insurance can cover acts, errors, mistakes, and omissions that come from the work or services performed by the contractor. If anything is damaged or lost during the contract period, errors and omission insurance can pay for damages and legal fees. If you think this would never happen to you or your business, remember that it is best to protect yourself and your business by covering all possible scenarios.
Contractors will always be an asset for the economy. Supplying independent services, goods, materials, equipment, and personnel is vital for many communities. However, just as companies are required to carry the proper insurance, contractors must also provide proper insurance coverage. This will protect independents from overwhelming legal liabilities when something unexpected occurs.
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LEGAL DISCLAIMER
Views expressed here do not constitute legal advice. The information contained herein is for general guidance of matter only and not for the purpose of providing legal advice. Discussion of insurance policy language is descriptive only. Every policy has different policy language. Coverage afforded under any insurance policy issued is subject to individual policy terms and conditions. Please refer to your policy for the actual language.
