Typically, there are many risks associated with a construction business, such as the possibility of an injury while at work. Due to these highly demanding dangers, proper liability insurance is critical to ensure the absolute protection of assets and control unseen liabilities. An appropriate liability of constructer insurance cover should cover against accidents, property damages suffered while on the job, and worker injuries. Besides, workers can accidentally damage the property by mishandling tools, construction materials, or during the remodeling process. Remember, for most construction jobs and particularly those involving government contracts, the contractor must offer liability insurance evidence as a requirement to qualify for the tender. Moreover, subcontractors must prove they have a constructor insurance cover even before they can enter the implementation phase. California contractor insurance services provides important risk management strategies to all construction companies. Contact them for a free risk analysis.
So, What Does Contractor Insurance Cover?
The following are some of the circumstances under which a construction liability insurance may be applicable.
- Compensation of bodily injury and property damages claims. Remember, in case of an injury while on their property, they are entitled to full medical cover. This means that the contractor’s insurance policy caters to the medical expenses, the court awarded compensation, and even funeral expenses in case of death.
- Damage refunds. In case the construction company damages the client’s property, or if the company is responsible for the client’s inability to accessing their property efficiently, this insurance cover will protect your company.
- Product claims. This liability insurance coverage addresses damages caused by machines and equipment installed by the company.
- Copyright claims. If your company is involved in designing a product, it might be sued for infringing the copyrights if it is very identical to your competitors.
- Advertising and personal injury claims. It refers to claims resulting caused by slander, false allegations, and libel.
- Completed operations and product claims. According to T&Cs’ policies, if the contractor’s projects cause damages from their defects, the contractor’s insurance will compensate for the damages.
What are the benefits of a contractor’s insurance?
An ideal construction liability insurance cover will caution your company from massive losses resulting from lawsuits and damages claims during the project implementation phase. The following are the key advantages of having your construction company under the liability insurance policy.
· It cautions your business from property damage and against injury.
· A liability insurance cover will play a significant role in helping your company cover compensational costs and damages once the final judgment verdict has been made against your business.
· It offers a certain degree of security and value since you know that your employees and assets are under proper protection.
· A good contractor insurance coverage can cover the cost of paying witness fees, court expenses, attorney fees, among other legal expenses. This implies that your company is under protection either as for individual claims or as a whole company.
What is the cost of securing a valid contractor insurance today?
Typically, the cost of liability insurance depends on the magnitude of risks occurring, which is influenced by the kind of work you are engaging in during construction. For instance, a low-risk project can appropriately fall under a business owner’s insurance policy rather than liability insurance. Typically, commercial contractors encounter higher damage risks. For instance, a roofing company or electrical installation company has higher insurance covers than small scale construction companies performing general work such as pavements and interior installation.
Does the Contractor Insurance Cover have limitations?
Yes, there are also several limitations to a liability insurance cover. For instance, you need to establish limits for every occurrence and even the complainants’ compensation limits. Besides, rules are also set for medical expenses and fire damages on a property under work.
Remember, no matter how your company is careful while implementing various projects, some accidents and misfortunes are unpredictable, but that shouldn’t mean your business’s end. Some circumstances are indefinite, and no one has control over them, only mitigation. For instance, some equipment may not be 100% perfect, just like human beings. This means that the contractor faces inevitable delays and sometimes income exhaustion due to legal requirements to compensate for the injuries and damages in circumstances of machine failure and accidents. Such reasons make contractor insurance very important in protecting your company from running financially bankrupt in case of multiple suits against your business.