Accidents happen and contractors operate a business where accidents could happen at anytime. It is important to have the right insurance coverage and to know where your coverage leaves you exposed. We have put together a short list of common insurance claims for contractors so you can see how these types of claims would affect your business and so that you can make sure you have the coverages that your business needs.
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This is one of the most common causes of insurance claims from contractors. Tools and equipment get stolen from the job site all of the time, and things don’t seem to be getting any better. Every contractor is fully aware of the dangers of theft and the costs associated with replacing the tools or equipment that they lost and the costly delays that will be the result of the theft. Having the proper insurance coverage that will respond quickly and get you back to the job site is pivotal.
It doesn’t matter how well your employees are trained or how careful you are, accidents happen on the job site. Contractors are working in other peoples buildings and homes every day and this opens them up to expensive damage to their clients properties.
It could be something as simple as breaking a window by mistake, hitting a vehicle with a ladder, or even dropping a can of paint. The costs associated with fixing these mistakes can be very high depending on the damage done. Sometimes it’s something that you yourself are not able to repair and would need to call in outside help to repair the damage. It could also be damage that will be so costly that it renders the completed job you did worthless in terms of money gained. Not having the proper insurance coverage for your business can leave you holding a rather large bill.
Completed Project Claims
Putting in an insurance claim for completing my project? It does sound a little funny, but it’s a real thing and it’s a very expensive situation if someone brings a lawsuit against you or your company for the work completed.
An example of a completed project claim would be a deck that your company was hired to complete on the second story of a home. Everything went smoothly and the deck looked amazing. Everyone was very happy with the project and the workmanship at the time of completion. That is until the deck collapsed a month later and caused serious injury to the homeowner and you are now staring at a very serious lawsuit. It is very important to know if you are covered for these types of scenarios and to obtain coverage if you’re currently exposed to these types of lawsuits.
If your company works on larger projects and you are delayed in completing the projects on time due to theft, bad plans, or even weather events, it could cost you money. The companies that run those big projects are not above bringing in the contractors and subcontractors into these type of lawsuits. It costs them money to have a new building delayed and as a result they are going to try to recoup some of that lost money. The first place they are going to look is at the companies who were supposed to build the building by a certain time. It is crucial that you know if your company is covered for these exposures and know your builders risk policies limitations before you jump on new large projects.
Commercial Auto Claims
We all have to get to the job site somehow and most contractor businesses will have their own company vehicles. You may be the only one to drive a company vehicle or you may have more than one vehicle with employees who are driving as well. Vehicle accidents happen all of the time and company vehicles are no different. It is even more important to have proper coverage when you are most likely also carrying a trailer or tools with you as you’re driving from job site to job site. If you don’t have the proper commercial auto insurance for your vehicles you are running the risk of being personally responsible.
The Final Word
Our list could have been a lot longer than this one, but we didn’t want to completely scare you away from the business. The whole point of insurance is to protect your business financially from unforeseen circumstances that could possibly render the business bankrupt. If you don’t have the proper insurance coverage for your company, you are taking a very large gamble with your livelihood and the livelihood of your employees. Contact us to find out how we can get your business properly covered for reasonable premiums. It’s simply not worth the gamble to go without coverage or coverage that isn’t actually protecting your company.