Construction companies are aware that they must acquire Contractor Business Insurance to protect the interests of their business. A Swiss Re report states that the United States of America is the hub of uninsured businesses.
It’s not surprising that up to 40% of the construction companies do not have enough coverage despite the uncertain working environment. However, the rate of uninsured construction companies is rising because the majority of contractors are confused.
Are you confused about what kind of insurance you should get?
Liability Insurance vs. All Risk Insurance
Liability insurance is a must-have for every construction contractor. Moreover, it provides a financial cover to a contractor and his business against lawsuits and injuries. Thus, these injuries have insurance protection if you have general liability insurance.
- Physical damages to a third-party
- Physical damage to a third-party’s property
- Personal injury for libel or slander
Unlike the name, ‘All Risk insurance’ does not provide full insurance protection to your company. It is a supplementary cover that adds financial protection to a single project. It expires at the end of the project. Furthermore, for the next project, you must enew ‘all risk’ insurance.
Now you know that ‘all risk’ and ‘contractors liability insurance’ are two different sides of the Contractor Business Insurance package. As such, let us move on to contractors’ liability insurance.
Contractors’ Liability Insurance
Any credible construction company will not compromise on insurance protection. Furthermore, the contractor’s liability insurance is mandatory for workers on government projects. Contractor Business Insurance shows a professional approach to business. Insurance coverage also builds goodwill.
Benefits of Contractors’ Liability Insurance
- It is long-term insurance protection. It protects your construction company against injuries and property damage.
- Contractors’ liability insurance provides financial support to your business in covering costs and damages after a lawsuit’s final judgment.
- It provides mental security. Thus, you protect your business, goodwill, and assets.
- Contractors’ liability insurance is subjected to cover the legal fees,i.e., attorney fees, witness fees, court expenses, penalties, and more.
Contractor Business Insurance Protection
Contractors’ liability insurance is your rescue in the following 4 cases:
- Injury claims: This policy helps you to pay for medical expenses of the injured party, funeral costs of the deceased, and legal compensations to the injured or the heirs of the dead. Further, it does not include worker’s comp.
- Damage claims: In the construction business, you never know when your workers or an incident could damage property. However, contractors’ liability insurance protects your company against the damages of your customer’s property.
- Product claims: Liability insurance provides you with financial coverage for any damages done due to the installation of equipment. Your insurance provides partial or complete coverage according to your custom insurance protection.
- Copyright claims: Contractors’ liability insurance helps you to fight legal battles. Copyright infringement is also covered in this policy.