As a business owner, we get that you’re probably trying to budget as much as possible. That’s why it may be tempting to put off getting contractor insurance or avoid it altogether, especially if you don’t feel like it adds any value to your business.
But here’s the thing: General contractors like you are at risk of the kind of property damage claims that can be absolutely catastrophic to your finances.
For example, suppose you get sued for accidentally causing significant property damage to a customer’s home. In that case, you may have to pay for legal fees and damages out of your pocket – or your family’s finances – if you are not adequately insured.
Speaking of getting sued, contractor insurance can offer significant peace of mind if a customer decides to sue you over your services, even if you did nothing wrong. Client lawsuits are more common than you think; it’s estimated that 43% of small business owners have reported being threatened with or involved in a civil lawsuit.
Additionally, many states require contractors to carry insurance, especially if they have employees or work on certain projects. Plus, if you want to be licensed as a contractor, you will need to show proof of insurance.
Oh, and one more thing: Many customers won’t work with you if you’re not licensed and insured. There’s a lot of advice out there warning people to only work with insured contractors, so it’s a good idea to get this coverage if you want to increase your clientele base.
Contractors insurance depends on various factors like the types of projects you work on, where your projects are located, your payroll and the kinds of jobs our employees do, and the number and types of vehicles you use at work. It can get confusing sometimes; we can help you package your contractors insurance. Talk to us today to know more.