subject: Why You Need Insurance For Contractors [print this page] Buying Insurance for contractors within your company is one of the most important and best things that a business can do for themselves. In general, insurance offers protection for the vitality of the business in addition to other things. Commercial insurance additionally helps to protect a company from liability as well.
What Type of Insurance for Contractors should I buy?
General liability insurance should be one of your considerations as it protects the business as a whole. In theory this insurance can protect you up to five million dollars for each occurrence that happens. It should however be noted that this amount and type of insurance is an example and that your coverage will be determined by the offered insurance and other situations that insurance company discusses with you.
Who Does Commercial Insurance Cover?
Since this type of coverage handles third parties and the contractor the commercial insurance is designed to help cover all. If at any time an accident should occur, this insurance would help to cover property, any bodily injury for third party individuals, along with any personal coverage you need for injury. In addition to this, there is an amount that can help with legal bills as well. This means that your company will have no liability for legal bills, but the insurer will handle them.
What Essentially Are the Advantages to Having Insurance for Contractors?
To understand this, you need to consider that all state and government agencies will require that a certificate of insurance is on file to do a project for them. In addition to this, many people won't hire an uninsured contractor as well. The biggest reason for this is that there is a financial risk that is obtained by hiring an uninsured individual. Because of this you will find no one will hire the contractor, because they in turn become responsible for any injury or damage that might happen.
So no state of government agency will hire a person that has this level of risk that has been associated with them. Along with that any well informed home or business owner will pass over an uninsured individual performing work for them. There will very likely be no one that is willing to hire a person that has such large risks associated with them.
In consideration, it is always important to buy insurance for contractors. Many different types of policies are out there. Therefore, this makes it easier for you to obtain the type of coverage that you want. Essentially, you can find coverage according to the number of people that work for you in addition to other requirements as well.
You will find that the worst business decision you can do is to neglect commercial insurance. When you are without insurance you will find that you can lose work along with some other things. One additional thing is that you could lose your assets as well. It is vital that you look over your coverage and if you don't already have it, you should purchase it at once.
by: Socrates De Souza
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