The construction industry is accompanied by inherent risks. In fact, according to OSHA, it is one of the most dangerous professions as far as worker injuries and accidents are concerned. From falls and electrocutions to equipment failures, the chance of injury to professional construction workers is higher than other industries. Insurance coverage for contractors is not only required by law, but it is critical for long-term success and protection.
Whether an individual is new to the industry, just starting out as a contractor, or has been involved in the construction industry for years or even decades, examining existing coverage or shopping around for new options may be beneficial.
Are You Covered?
If you’re involved in the construction industry, think about your insurance coverage. How familiar are you with your liability and workers’ compensation policies? Do you know the difference? It’s good to ask these questions now, before a worst-case scenario situation arises.
Contractor’s Liability Coverage
Contractors are required to purchase proper liability insurance which protects them from the potential financial losses related to claims against their work (subcontractors are also generally required to have adequate liability coverage). Because the potential for financial loss is great when working on residential or commercial projects, your coverage should be great.
It’s important to speak with an insurance professional to ascertain that your liability coverage and that of your subcontractors is sufficient. Your business may depend on it.
Workers’ compensation is another type of liability insurance that is absolutely critical for contractors. In the event of an employee injury on a jobsite or traveling to or from a jobsite, your business may be held responsible for medical coverage as well as pain and suffering if a claim is brought against your company.
Ask the Right Questions Today
The best place to start is by asking a few questions. Take a look at your current plan and the amount of coverage you currently have. Then, give a professional a call. Ask how much coverage is appropriate based on the size of your company, the projects you work on and your employees.
Be prepared; the more information you are able to provide, the more accurate your quote will be.
Plan now. If you wait, it could be too late.