Archive for the ‘liability insurance for contractors’ Category

General Contractor’s Liability Insurance: Is it worth the price?

Friday, December 14th, 2012

Accidents can happen at any rate like a magnet to a metal despite the amount of care we take every day.  Professionals have no excuse either regardless of expertise and their years of experience.  With the unstable rise and decline of the economy, people don’t care anymore on how important things are or their needs being met as long as they could save.  Nowadays people are more vocal in saying they don’t need anything that will cost them or having them admit that business is slow and they don’t need a service or they are doing fine just the way they are, not heeding the possible risks. 

One of the occupations or field works that was greatly affected by the dramatic downturn in the economy is contractors. Small scale contractors are now willing to gamble and persist on doing projects without contractors liability insurance or general liability insurance to protect them when problems arise. In another blog about California contractors, it was emphasized that liability insurance or insurance as a whole was the least item they wanted to spend their money on.

The word contractor has a broad meaning but what type of contractors are we talking about here?  A contractor or a general contractor is a group or an individual that enters an agreement with another, two or more parties or with an individual say the owner to construct, renovate or demolish a building, house, road or other structures. They are responsible for the supplies and materials to be used, means and methods to accomplish a project in accordance to the drawn contract.

Because of these responsibilities there are a number of liability concerns that the contractors need to be conscious of.  Property damage, contract liability, the possibility of bodily injury to workers and even people outside of work for example passersby and bystanders who got hurt because there were no caution signs or warnings around the jobsites or simple mistakes such as a hammer dropped on someone’s head are some of the possibilities contractors need to consider. Though, injuries to employees may also be covered by the workers compensation policy

The odds of getting sued are yet another factor a contractor should reflect on. There are so many businesses one could think of that have put business owners out of business.  The professional fees of lawyers alone could get your business on a major setback.  The price for purchasing liability insurance is nothing compared to losing your business for good.

So the question is, are you thinking of putting up a business or becoming a contractor yourself?  Think of these risks, get armed and save yourself from these liabilities and watch your business grow like you wanted it to be.

Posted via email from California Insurance Today