If you own a general contracting business, you will have to face many challenges to ensure that things are functioning properly. In such instances, a small contractor business insurance can act as an asset. This policy can help your business stand out in a competitive market.
The construction industry is one of the hardest markets to breakthrough. A recent report by the Bureau of Labor Statistics revealed that the construction industry has the lowest survival rate in the United States. Less than 50% of construction businesses make it past five years of operations. Achieving longevity in the construction industry is a significant achievement. However, that in itself does not guarantee continued success. The Bureau of Labor Statistics believes that most construction companies fold due to poor risk management and financial vulnerability. Small contractor business insurance protects your business against both of these variables.
Contractor Business Insurance Features
Small contractor business insurance protects your business if you are involved in a liability dispute regarding property damage, advertising injuries, and bodily injuries. The policy also covers any equipment that you use on the job against potential damages or if you’re a victim of theft. You can add surety bonds coverage, which protects your business while you’re working on a project and also covers your clients if a malpractice or negligence issue arises.
Key Advantages of Small Contractor Business Insurance
- Helps Your Business Gain Credibility
Many consumers who are looking to work with a construction business are aware of the data. New companies are viewed as untrustworthy, which makes it difficult to obtain contracts. Consumers want to work with businesses that have an established reputation. Adding insurance helps alleviate any concerns that potential clients may have about your professionalism and operational skills.
- Protects Your Finances
Insurance adds a layer of protection that construction businesses rely on to prevent a financial catastrophe. A serious work-related accident can ruin a business that doesn’t have enough insurance. Look for an insurance plan that aligns with the unique needs of your business. Every year, there are billions of dollars worth of claims made by contractors. Insurance claims are often high because the construction industry is unpredictable. While you may not be able to control uncertainty, insurance gives you a safety net.
- An Easy Way to Manage Risks
Developing a strategy for dealing with changeable circumstances can help your business achieve long-term success. Having small contractor business insurance makes it easier for you to identify risks and assess them. You can develop a strategy for controlling the impending risk with the added protection of insurance coverage. Construction sites are volatile. However, obtaining insurance allows you to face those challenges head-on.
Contractor’s insurance gives you a layer of protection while you’re working on a project. Without insurance, your business is at risk of having one accident destroy everything you’ve worked for. If you have any questions about your policy, contact the experts here at Artisan Insurance Solutions, and we will assist you.