What Does Contractors Insurance Cover?
"the privilege of working in this industry comes with one major drawback. Injuries and accidents can happen"
August 7, 2019 by canadiancontractor
Working in the construction industry is a physically demanding task. Having to work for long hours and risking your safety the minute you start, it’s fairly obvious that being a contractor is not for everybody. However, there are some who are hardworking and brave enough to choose and welcome it as a major part of their life.
Just like any other career or profession, being a contractor requires you to give your very best every time you work. After all, why shouldn’t you? Especially when you have the privilege of turning someone’s dream into a reality.
Unfortunately, enjoying that privilege comes with one major drawback. Injuries and accidents happen; thus, the lack of protection can have a tremendous impact on your profession.
That’s why having a contractors insurance is important. Because it can benefit you in many ways.
How does a Contractors Insurance help me?
Beyond the legal aspects of it, the most important reason why you should have a contractors insurance is simply because some regions in the country require you to have it.
Employers are also more likely to hire you when you’re covered.
Many people preferto hire contractors that are insured because it eliminates the burden of having to calculate things like income tax withholding, their share of CPP/QPP, and other requirements needed to manage the payroll taxes.
Additionally, pensions and health insurance are among the other things that an employer wouldn’t want to worry about.
Another reason why acquiring a contractors insurance is crucial to your business is that it can prevent you from experiencing a financial crisis in case an accident happens – which the bodily injury and property damage liability covers.
High hazard operations are another part of the contractors insurance policies that protects you during the times you and your employees need to operate heavy machinery.
Moreover, even your tools, equipment, and machines are protected when damaged, stolen, lost, or vandalized. Most insurance providers understand and consider the fact that some of your tools are stored in different locations. Therefore, they may still be covered by the insurance company regardless of where you store them.
A major benefit of having a contractors insurance is that it greatly boosts your reputation. As professionalism comes first and plays a huge role in getting hired for a job, a contractors insurance allows your business to have more opportunities — it gives your employers the impression that you’re a reliable.
How does a Contractors Insurance help my business?
Contractors insurance protects you and your business from other types of expenses and liabilities. Unwanted and uncontrolled events like pollution and fire incidents are covered as well.
Furthermore, your contractors insurance may also cover any legal issues that your business might encounter. It can help protect your livelihood by shouldering your attorney’s fees and court expenses. This is very useful in safeguarding your assets from any claims brought against your business and its services.
With a contractors insurance, you can also protect your business from copyright infringement. Since it takes creativity and innovation to come up with an original design, you can sue a company or a person whom you think copied your work.
What are the risks of not having a Contractors Insurance?
Because contractors are in an industry that involves a lot of operations that require heavy machinery, they are prone to accidents. Many employees have been left with a huge amount of debt because of it. Although injuries are often inevitable, spending countless amounts of dollars for your treatment can be prevented.
Lawsuits are not unheard of in the construction injury either. Even though structures are always routinely checked for damages — before, during, and after the building process — there are still incidents of immense, and sometimes detrimental mishaps.
What to remember when getting insured
If you’re a contractor who wishes to acquire a contractors insurance, make sure that you get it from someone established and dependable. There are many insurance companies who offer the same package. Some offer it for a fraction of the price.
Being a contractor is a rewarding job. Having the ability to materialize someone’s concept is something that not a lot of professionals can do.
That’s why it is important to value your safety in all aspects alongside your work.