Contractor
Insurance
Protecting Yourself
Contractor
insurance is a requirement for all commercial contractors to have.
It is designed to protect against lawsuits and other
risks.
This
type of insurance is protection includes the general contractor,
developer or builder and its employees or agents against lawsuits,
liabilities, expenses or other costs which may develop from a claim by
anyone against the organization, building or property.
As
a contractor in today's day and age, every job you take on comes with
its own set of risks. Contracting requires specific obligations and
legal responsibilities.
If any mistakes are made
that cost a client, this client has the right to make a claim against
you, and these kinds of claims can become quite expensive for a
contractor.
In addition, the vast majority of
clients today legally require that a contractor be covered by some
level of contractor insurance, before any contract is accepted.
When
it comes to purchasing contractors insurance, there are several
important factors to consider. For starters, all clients are granted
with a legal recourse by law, which allows the client to claim for any
mistakes or negligence on the part of the contractors.
With
proper contractors insurance, a contractor can be fully protected and
insurance, allowing the contractor to work freely with peace of mind.
Who
Needs Contractors Insurance?
- There are several state laws
requiring that contractors have one or more types of contractors
insurance.
- In the construction world, some of the
contractors that need contractors insurance
include but are not limited to:
There
are also other types of contractors including computer contractors,
design contractors, and more, who would benefit from securing at least
one type of contractors insurance.
There are many
types of
contractors insurance, some of which include:
Bonds
- Contractors
insurance companies typically also offer a variety of bonds. This is
common in the construction business where most bonds are designed to
protect a contractor, builder, or developer against substandard work
that does not comply with local building codes.
- Some
institutional lending companies, insurance companies, and/or commercial
banks typically require contractors to secure bonds for large jobs. The
types of
bonds include:
- Contractor's license bonds
- Performance
or contract bonds
What
Are the Costs?
- The prices of contractor insurance vary from
carrier to carrier, but in many cases, these costs are less expensive
than you may think.
- The cost will depend on a variety of
factors, including:
- The level of insurance required
- The
annual turnover of the contractor's company
- The number of
employees in the company
- The history of workplace accidents or
illnesses in the company
For
more information regarding employer liability
insurance, such as the contractor
insurance section here, please be sure to check out
the following
areas:
Similar to employer
insurance, employees also have
responsibilities and rights. To learn more about this, check
out the employee
rights section.
And don't forget to check out the various employment
background screening sections, especially if you are
interested in federal
government jobs.
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