Being a building contractor isn’t an easy profession. Numerous things can go wrong during and after a construction job. This is why contractor’s insurance is a recommended investment. Financial protection is important, especially in a high-risk field such as construction.
What is Contractor’s Insurance?
A contractor’s insurance policy provides financial assistance in the event of a covered incident. For example, incidents involving weather can wreak havoc on a construction site. And weather is one of the most common reasons why policyholders file claims. In the event of damage, contractor’s insurance provides financial compensation to help the contractor.
Do All Contractors Need Coverage?
Construction company owners are recommended to have contractor’s insurance. Several things can go wrong on a construction site. Not only can things go wrong with equipment, but workers can also get hurt. Having insurance is a wise decision.
Contractor’s insurance provides financial compensation when a negative event occurs. As long as the event is a covered mishap, then it’s likely to receive approval. Incidents involving weather and theft are the most common mishaps. It’s not uncommon for workers to steal expensive construction equipment. This equipment can be sold for a profit. And bad weather causes all kinds of problems on construction sites. So these types of incidents are generally covered by all contractor’s policies.
A contractor should speak with an insurance agent to discuss coverage details. That’s the best way to learn about all the various options available. The size of the business, the equipment, and the types of jobs performed all play a role in selecting a policy. The best policy for one contractor might not be the best for another. But one thing is certain, and that’s that all contractor’s should have a policy in place. Without a policy, one unfortunate incident could ruin the entire business.
Contractor’s insurance can keep a business from going bankrupt. It provides valuable financial assistance during crisis situations. For that matter alone, all construction companies should have the proper insurance coverage.