Sign up with your email address to be the first to know about new products, VIP offers, blog features & more.

You are viewing Liability Insurance

Why You Must Obtain a Contractor’s Bond and Insurance Policy

The things that can potentially go wrong on a job site are very numerous. Seasoned contractors well aware of this insure against such risks. Such covers include protection against possible workman’s compensation claims, injuries to non-employees, malfunctioning of manufacturing equipment to mention but a few.

Due to this wide range of potential risks, many states have legislation that requires contractors to acquire some form of insurance against these and other potential litigation probabilities.

That said, whenever one goes to look for an insurance product that fits their need, it can be a complicated process rife with the possibility of winding up with insurance that may not be the appropriate one for your business needs. To avoid such risks, it is important for one to make sure that they seek out contractor’s insurance quotes and purchase coverage before sealing a contract.

In a nutshell, a company that employs hundreds of workers and subcontractors has wider insurance needs as compared to a small company. This aspect brings out the fact that insurance is not a one size fits all proposition. To ensure that you get the correct coverage at an affordable price, it is advisable that you get a broad range of insurance quotes as early as possible.

insurance

General Liability Insurance and Contractor’s License Bonds

If your needs entail a large contracting service, it is possible that you are going to require multiple insurance policies or a policy that covers different aspects of the day to day operations of your business. We highly suggest having  proper insurance coverage and contractor bonding in place from ContractorBondQuote.com. Speak with a specialist to determin an accurate cost of bonding.  Some of these operations that you may need to take out insurance for include insurance for employees, materials, personal injury suits and another potential “at risk” areas. In insurance, there are many esoteric headings such as:

Premises and operations risks

Such risks entail, the potential mishaps that could occur at a customer’s location or another job site, possible injuries not only to employees and other individuals near the job site but also damages to property, materials or other existing structures near where the work is being carried out. Good insurance policies will provide cover for all such risks.

Products and completed operations risks

These risks cover injuries or property damage associated even tenuously with materials or construction completed or underway at a site.

With such a wide variety of options to consider, it is advisable that you set up a meeting with more than one reputable insurance agent as you will have a better idea of choosing the right policy if you have several contractors insurance quotes.

Why Every Builder Needs Liability Insurance

Insurance is protection against any unforeseen circumstances that may arise in the future. Builders are offered with different types of insurance to protect them in different occurrences that may face them in the construction process. One of the insurance covers that every builder needs is liability insurance. This insurance protects the builder, who is the insured, in respect to legal liability to third parties for property damage, and bodily injury that may happen in connection to the business.  Here is an overview of liability insurance and why you need it.

Liability for Employees

Builders need liability insurance because they have employees who are a risk to them. The workers need to be covered so that in case of injuries or death as a result of the construction work they can get compensated. This is covered under builder-employer liability insurance. The employees will not pursue you for compensation in case of injuries, instead they will launch a claim with the insurance company.

Public Liability

There are different parties who are considered externalities in any construction work. We will have people nearby, animals, and probably other buildings. All these are a risky to your construction work. Therefore, you need public liability insurance so that anything that may happen to them as a result of negligence in your work may be catered for by insurance.

Builders need liability insurance so that they can have peace of mind. There are many risks posed to third parties more so the employees a builder contracts. Therefore, liability insurance reduces the worry and risk of your business as a builder.

Legal Requirements

In many companies that are hiring builders, it is a requirement for them to have liability insurance. They understand what liability insurance can do. Therefore, if you need to develop competitive edges against other builders you will need to get liability insurance.

Many builders are not big enough to compensate third parties in case of damage to property or injuries. If they do the compensation they may incur losses that they will never recover. When you are the one to indemnify for damages to third party property, you will have to incur other expenses hiring lawyers, witness fees, and court expenses. Besides, this may waste your time that you could have invested in other construction contracts.

If you are a builder, liability insurance is a mandatory aspect in your business. You will need to engage experts in the field so that you can get the best cover. Besides, you will need to consider the rates offered by different insurance companies.