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Reasons A Contractor Should Have Insurance

Many people dream of becoming a contractor because of the many good things they hear about it, and they would have the right idea. Indeed, being a contractor is a dream in so many ways.

What It’s Like To Be A Contractor

Being a contractor, for instance, means you are your own boss. If you had to endure having some person look over your shoulder as you worked as an employee, then this time, you’d be the one who will look over your own employees’ shoulders as they do their jobs.

As the boss, your hours will also be a whole lot more flexible. You can come in at any time to you want, that is, if you had to come in at all. If your contracting business already has an efficient system in place as well as reliable staff, then your presence at jobs may no longer be that necessary.

Then there’s the income, which will tend to be higher than the salary you had as a 9 to 5 employee.

It’s good being a contractor, but you need to remember that being one means you will also be burdened by certain responsibilities and liabilities.

You see, mishaps at contracting jobs happen all the time, and whether you like it or not, your employees and clients can file claims against you in court. If a court orders you to pay those claims out of pocket, you have a huge problem. If you want protection against such claims, you must get contractor’s insurance. To learn why you have to get such coverage, check out the infographic below.

Reasons Why A Contractor Should Have Insurance

There are a variety of reasons a contractor should have insurance. While our infographic above does a great job of introducing the importance of having your contracting business insured you should speak with our professional insurance agents about your specific contracting business.

Being a contractor is great but it also comes with huge responsibilities. Getting contractors insurance is one of those obligations that need to be fulfilled for the following reasons

1. Most States Require Contractors To Have General Liability Insurance

In most states contractors are required to demonstrate proof of insurance as part of obtaining a trade license or registering as a business. Since you are already required to get contractor insurance, why not get it from a local Pennsylvania insurance company that cares about your business and wants to see you grow and succeed. Contact Strickler Insurance for a free quote on contractor insurance.

2. It Boosts The Contractor’s Business Reputation

Most residential or commercial clients only hire contractors who are properly insured. With the right contractor insurance, contractors will be more attractive to clients. Think about all the local Facebook groups and how they discuss local contractors that were not insured and simply took the money and run. Meanwhile, when someone asks for a contractor on the Lebanon Facebook group or the Nosey Neighbours of Schuylkill County group, people recommend contractors that are insured and qualified.

3. It Protects A Contractor’s Business From Claims

As a contractor, we are 100% liable for any injuries or property damage that may happen in one of our contracting jobs. With contractor’s insurance, any financial liability from a claim goes to an insurance company. That way we can handle the claim and you can keep working.

4. It Can Pay For Legal Expenses

If claims for personal injury or property damage result from a contracting work or are ever filed in court the contractor’s insurance can be used to pay for attorney’s fees and court expenses and other legal costs. Legal costs can compile quickly so be sure to be prepared.

5. It Gives Both The Contractor & The Customer’s Peace Of Mind

Knowing that any personal injury or property damage claims made will be fully covered by your contractor’s insurance gives peace of mind. You can work with freedom and in peace knowing that you are covered.

What Does Contractors Insurance Cover?

  • Property damage or bodily injury.
  • Client and third-party injuries. For example, a customer trips over a power cord or slipped on a wet floor.
  • Medical payments Anna bills
  • Legal defense costs
  • Reputation injuries as an example of a competitor claiming you damaged their reputation in an ad.
  • Problems with your construction job/installation for instance completed products coverage.

Learn more about contractor insurance from Strickler Insurance.