Contractor Insurance - Advantages of having Contractor Insurance
Being a contractor means you have special legal responsibilities and obligations to your clients
, your staff, and yourself. That's why you should always carry contractor insurance.
As a contractor the weight of the world is on your shoulders. Okay perhaps not the whole world, but you have a big responsibility to your client both financially and productively for any mistakes that might arise.
The good news is, it's true seldom is their actually a claim against a contractor. However, in the past few years that has changed considerable, especially since all the problems arose with leaky condos. And when a claim does arise it's usually for a large amount of money. So why take the risk? Why not buy contractor insurance and know you are covered?
By law clients have a right to make a claim against you and your company in the event of an error or negligence. No matter how you worded your contract in most cases it will do nothing to protect you.
Most potential clients won't even consider dealing with you unless you have proof that you carry adequate insurance. And can you blame them? Why would they take the risk of being out thousands or even hundreds of thousands of dollars?
By carrying adequate insurance and showing your customers proof of that insurance you will actually see more potential clients become clients. It speaks volumes for your reputation.
So it's good for the client, it's good for business, and it's good for your peace of mind. And the good news is policies are actually a lot cheaper than you might have thought. There are several different coverage's available to choose from.
The most common insurance purchased by contractors is the
professional indemnity insurance. It covers you for claims that could potentially be made against you and any damages that may be deemed payable. It also covers you for legal costs against a suit by a client regardless if the claim has merit or not. It is a good overall policy that gives you the basics. Then you can add on additional coverage if you need it.
A public liability policy protects you against accidental damage that you cause to another persons property and accidental injury caused to someone while working on the clients property.
An
employer liability policy protects you against claims of injury that employees bring against you. Depending on where your business is located you may have adequate employee coverage through WCB.
An equipment coverage policy insures your business assets against loss, theft, and accidental damage. This coverage is highly recommended as your equipment is vital to your business remaining open.
Legal expense coverage protects you from legal costs as a result of claims brought against you. Tax protection ensures you have coverage should your government chose to audit or investigate your business practices.
Those are the main coverage options available but certainly not the only ones. A quick search online will reveal several websites that offer a variety of insurance packages.
Contractor Insurance - Advantages of having Contractor Insurance
By: Benz M S
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