Features and Coverage Essential for Contractors InsuranceBusinesses benefit from different types of insurance. They act as a safeguard against financial losses not related to profits. Accidents and other unforeseen events in the delivery of service may occur, and if these events occur, the aggrieved party must be properly compensated, commensurate to the damages incurred. Insurance companies offer comprehensive insurance to contractors that will ensure full coverage of different circumstances that may occur in the duration of a project. There are numerous insurance policies that cater to contractors. One of these is the contractor’s insurance at Next-Insurance.com. They offer a wide range of insurance policies suitable for each contracting business.
Each type of insurance has its own features and coverage, but the following are the general features that contractors and clients alike can benefit from.
It is essential to provide insurance for your employees, as they are the front liners who handle equipment that can cause damage to people and property.
Protection from Frivolous Lawsuits
If a client sues you because he was not satisfied with the results you delivered or if he deemed the project was substandard but then later on dropped the case or a judge deemed the case insufficient in form, you will still end up with sky high legal fees. Professional liability insurance covers you from paying these legal fees out of your pocket.
This feature allows you to keep your personal assets from being sequestered in case a client sues you. It means that your personal assets will remain untouched even if your business assets are not enough to cover damages or compensation. This will protect you from total bankruptcy.
Builder’s Risk Protection
If during the construction of the building some damages are incurred, the insurance company will shoulder the damages. You don’t have to shell out more money to reverse the damage done to the building.
This feature will ensure that even if faulty materials are supplied to you, you will not shoulder the additional expense of procuring replacements. You may have a trusted materials supplier, but a bad batch of materials may slip through their quality control and be delivered to you.
A contractor’s business cannot run without equipment. Insuring your equipment and machinery will protect you should one of them malfunction in the middle of a building project. Each piece of equipment must have adequate insurance coverage.
Protection from Third Party Damages and Claims
Let us say the adjacent property next to your client’s incurred damage through your employees’ fault. The property owner will ask for damages, and your insurance company will cover them for you.
If you are hiring a subcontractor, it is imperative to require them to be have sufficient insurance coverage to protect you, your client and the subcontractor himself. Investing in a comprehensive insurance policy for your contracting business will safeguard you against claims and lawsuits.