Talking With Insurance Companies

Contractor liability insurance is a necessary expense when you're a contractor. Not having insurance could limit your ability to get work and could leave you ruined financially in the case of an accident. Your insurance agent can help you get the right coverage for the type of work you do and at a price that fits your budget. Here are some ways this type of insurance helps you.

Liability Insurance Is Required for Many Jobs

You may find it difficult to get steady work if you don't have proof of current insurance. Companies don't want the risk of using someone that's not insured. Even homeowners are taught to ask for proof of insurance before hiring a contractor to do work around the house. If you want to work as a subcontractor through a general contractor, then having adequate insurance is essential. While getting liability insurance may seem like an expense you don't want, it can actually help you secure more work. It can also be a financial asset since you won't be limited in the jobs you can accept due to lack of insurance.

The Insurance Pays Huge Medical and Repair Bills

The main benefit of having contractor's liability insurance is that you won't be responsible personally for medical bills or repair work that results due to an accident that you cause. Even mild injuries can result in large medical bills that could put you out of business. If someone is hurt while you're working in an area, they could sue you and force you to pay for their medical care. If you have liability insurance, medical and legal bills are covered for in incidents like these.

Liability insurance also covers damage you might cause to someone's house while you're working. If you accidentally damage wood or stone flooring while installing cabinets, you'd be responsible for making repairs. Some repairs could be costly and beyond your ability to pay unless you have liability insurance that pays the fees for you.

If you're just getting started in the construction trade, it's important to understand the type of insurance protection you need. One mistake could end your career and business before it has a chance to get established. Protection is important for the future of your business and to protect your personal assets too. Accidents happen when you're not expecting them, so it's best to always be prepared with good insurance coverage. You'll need liability insurance throughout your career, so find an agent who can help you make wise choices and adjust your coverage as your business grows.