Contractors liability keeps professionals awake at night, worrying about what might happen if ever a claim arises. It’s a valid concern, as contractors face liability in many ways. General liability insurance for contractors covers costs stemming from incidents involving the contractor, whether it’s an accident, mistake, or something else. This coverage protects contractors from liability.
There are a few main areas of contractors’ liability and risk that your clients may encounter. While there are certainly other product lines you can suggest to your clients, starting with general liability insurance for contractors is a good idea, as it offers baseline protection to which your clients can add further coverage.
If the contractor is found or suspected to have caused economic loss by failing to deliver a completed project on time and within the budget outlined in the contract, they can be held liable for any cost differences or for the damages resulting from a delay. This is considered a personal injury.
Property damage and bodily injury are common contractor liabilities, whether it is something that happens during a job or something that happens as the result of a contractor’s work or decisions. For example, if something is constructed improperly and ultimately fails once the project is complete, injuring someone on-premise or damaging the property, the contractor may be liable for costs. Consider this recent case out of Charlestown, in which a woman was struck and injured by an unsecured metal railing at a worksite. She is suing the contractor responsible, suing for damages for lost earnings and future earning capacity, for medical expenses and the cost of future care, and other damages. One mistake or accident can cost a lot, which is why insurance is so important.
Why Secure General Liability Insurance for Contractors?
One big reason contractors need general liability insurance is that it’s often required to bid on a contract. People hiring contractors want to know that they have insurance and will request proof of that before awarding a contract. Nobody wants to deal with a contractor who cannot back up their work with the right insurance. If your contractor clients want to get as much work as possible, they will need coverage. In some industries and situations, general liability insurance is mandated by law, especially for independent contractors.
In all cases, general liability insurance for contractors saves money. Paying insurance premiums is an investment in long-term protection. Contractors liability insurance means that when something inevitably goes wrong, your clients are not left paying out of pocket for what could be very expensive damages. These costs can be enough to shut down even the most successful contracting business, an avoidable risk when your clients invest in insurance.
One more important note: contractors liability insurance is not only designed for general contractors. Often, subcontractors benefit from having their own insurance and may need to show proof of insurance to bid on contracts too. That is because without a subcontractor handling their own liability with the right coverage, that risk is passed on to the general contractor, who is unlikely to be enthusiastic about assuming more liability.
Write More Contractors Liability Insurance
Because contracting is a risky business, your prospective clients are probably well versed in the need for insurance, but they may be taking the time to find the right product line for their needs. Working with Prime Insurance Company, insurance producers like you can write more business by offering top-notch contractors liability insurance to even the riskiest clients. We write tough risks, which gives you a competitive edge over other producers who cannot offer the same flexibility and service to contractors in need of liability protection.
XINSURANCE is proud of our flexible underwriting, our risk management skills, and the results we get from claims. We work quickly and effectively, fairly handling all claims. And, if your clients want to add on to their insurance with another product line, we offer a wide range of insurance products that help cover contractors liability. With Prime Insurance Company, insurance producers and their clients benefit from our experience, our industry-specific skills, and our ability to meet unique underwriting needs.
Whether your clients are contractors or subcontractors, we are here to help you match them with the ideal product. Use our general application found here to get the process started. Every quote we provide is good for 30 days, giving you and your clients the opportunity to explore your options and come to us with any questions or concerns.