Contractor Liability Coverage Won’t Work For Your Contractor Company

For your Contractor Company liability coverage is essential but you are wrong if you think it is all you need.  It covers a specific risk, that of being sued for causing harm to another.  However, it does not protect you from a host of other risks that you face.  You should know what it covers you for, and what else you need.

1. What Does Contractors Liability Do?

Contractors Liability coverage plays a very important role in protecting your company.  If you are sued for causing bodily injury to someone and/or damaging their property, this coverage will assist.  It helps with your legal defense, including your defense team, witness fees and costs of evidence.  It will also assist with settlement costs.  A lawsuit is very expensive.  If you do not have liability coverage you will have to pay these costs yourself.  It is possible that your company will have to shut down and you could lose personal possessions too.

2. What isn’t covered?

Contractors Liability coverage does not protect your employees.  It also does not provide the property protection you need as a contractor company, namely Workers Compensation and Builder’s Risk Insurance.

• Workers Compensation. This covers your employees if they are injured at work.  It assists with medical care costs as well as loss of income they may suffer as a result of their injury.  It is mandatory to have this coverage and you will face penalties and costs if you do not have it.

• Builder’s Risk Insurance.  This is property coverage that protects you from many perils you face in the process of construction of a specific project. It covers the costs of your labor, tools, equipment and materials used in the project.  This is not mandatory insurance but there are many reasons why it is valuable for your company.

Why do you need Builder’s Risk Insurance?

This coverage is useful to your company because:

• It demonstrates to clients that you are a professional.  If something goes wrong you have the means to fix it.  Thus, this can improve your chances of being appointed.
• It is not mandatory coverage, but many clients will insist you have it.
• It protects your profits. Moreover, if a loss event occurs, you don’t have to pay to remedy it from your own funds.

What you need to know about Builder’s Risk Insurance

Before you purchase this insurance you should know the following:

• It is specialized coverage that covers the construction of new buildings and structures.
• Also known as Course of Construction Insurance, it is temporary coverage for the duration of the construction process.
• It has a start and an end date, and is generally 3, 6 or 12 months in duration.
• It covers you for damage to materials, equipment and property from fire, theft, vandalism and other listed perils.
• One policy can cover your contractor company and all participants in the project.

Where to get Builder’s Risk Insurance for your Contractor Company?

Builder’s Risk.net specializes in this coverage.  We have many years of experience in the industry.  Furthermore, our agents are experts. Call Builder’s Risk at 877 960 0221 and we will get you the right coverage to protect your project.