With DIY products and ambitious projects widely available online in posts and videos, more and more people are taking a swing at becoming a contractor in their spare time. For some, it becomes more than just a hobby. Working as a contractor may be more fulfilling for you than working a regular 9 to 5 job. Being a contractor means you’re the boss. You could own your own business, have business partners or just work solo. Being the boss means that you are on top! When you are the boss, you will have better working conditions, you set the start time of the work day, and there is no HR officer who will take notes while glaring at you. As a contractor, you’ll need insurance for your business. Good thing there is a type of insurance just for contractors! But why do you need contractors insurance? Here are 3 great reasons why you should invest in getting contractors insurance.
When you are a contractor, you are solely responsible for the area in which you do your work. If someone were to get injured within your area because of an accident or plain negligence on your part, you can expect that person to file a claim against you. This same responsibility applies to your employees if they were to cause any type of accidental or, in the worst case, intentional damage to the property area you are working within. Why do you need this protection? These types of claims could be big enough to completely shut down your business if you’re forced to pay for the damages out of pocket. To avoid the potential of disasters like this, you should consider taking a general liability insurance policy for contractors. Whatever potential financial liabilities you end up with, you can be reassured that the general liability insurance can cover them and help to keep your business from shutting down.
It’s inevitable that workplace accidents happen. Hisk-risk contracting jobs like roofing are a step away from accidents happening. One wrong step while working on a roof and the accident could lead to a worker sustaining an injury. The injured employee has every right to file a claim against you since they were hurt while working on your jobsite. They can file a claim for their pain and lost wages due to recovery time. If you don’t have worker’s compensation insurance it’ll be a path of trouble. Almost all states require employers to get workers compensation insurance. This coverage is a win-win for all parties involved. Injured employees can get all the benefits that are due to them and it wouldn’t matter who is at fault for the unforeseen accident. On top of that, you will be spared from the cost and hassle of a potential lawsuit that the injured employee could have filed against you.
Here is a big one. Did you know that uninsured contractors often get hit hard by attorney’s fees, court expenses, and other legal financial expenses when some files a claim against them in court? In case of an interested party suing you in court, your contractors insurance policy should cover the legal costs that a lawsuit may entail. This gives you peace of mind when you go to work a new job with a new client.
Your workday should not be taken up with worrying about keeping your business afloat. When you have specialized insurance designed for your industry, you can keep the focus on doing your best as a contractor – as it should be.