There are so many great things about being a contractor. For one, you are your own boss. No one will be looking over your shoulder making sure you’re punching in and out, as you have control over your work hours. For another, the money is so much better than if you’re just a salaried employee.
Being a contractor, however, isn’t all about what you can get from it. It’s also about what you have to give, from your expertise, time, and effort to getting contractors insurance, which is important for the reasons listed below.
- Contractors insurance protects you from claims
For any injury or property damage that happens within the area of responsibility of your contracting work, you can be the subject of claims from the affected party. More often than not, the financial liabilities from such claims are big enough to cause a business to close down.
You have to invest in a general liability insurance policy to protect your business. With such a contractors insurance policy in your hands, you will be shielded from any financial liability that a claim against you can bring.
- Contractors insurance can cover employee injuries
One type of contractors insurance that can help employees who were injured while carrying out their duties is workers compensation insurance. Fail to provide this type of insurance, and the contractor may be sued in court to pay for his or her employee’s medical bills, among other things.
- It can pay for legal expenses
Choosing the path of a contractor means being prepared for the possibility of being sued for claims by interested parties. If you have contractors insurance, you can at least use it to pay for attorney’s fees, court expenses, and other legal costs that could otherwise ruin an uninsured contractor.
- It gives your business’ commercial reputation a boost
There was a time when clients—residential or otherwise—hired contractors without so much as a background check. However, most clients have gotten smarter these days and are now quite meticulous when hiring a potential contractor for a project. Now they only hire contractors with proper insurance coverage.
In effect, having contractors insurance boosts your reputation among potential clients, and increases your chances of getting hired.
- It gives you peace of mind
Being on the receiving end of a liability claim can be very stressful indeed, particularly if you don’t have insurance coverage. However, if you do have contractors insurance, you can relax for a bit with the knowledge that your policy will take care of any personal injury or property damage claim that will be filed against you.
So if you’re a contractor, you will be doing yourself a huge favor if you get the contractors insurance that you need.