Why Should You Only Hire Contractors with General Liability Insurance

Many businesses and homeowners often turn to a handyman to fix problems at a low cost. Major problems can arise from this type of relationship if items are installed incorrectly or someone at the work site gets injured. The contractor’s general liability insurance pays for claims that might otherwise turn into expensive lawsuits. Here are the top five reasons you should insist on only hiring contractors with the right insurance.

  1. Protects workers and non-workers

    Contract work such as construction is very dangerous and can lead to injuries to crew members and possibly others. The use of heavy, loud, high-speed machinery can cause various injuries and health problems. Crew members should be covered by workers’ compensation insurance, which pays for medical bills and other losses due to an at-work mishap.

    It’s important to know the company carries liability for its workers and others so that no one tries to sue you for injuries on your property. Contractors’ general liability insurance provides extra protection for the contractor and the property owner if a non-worker gets injured at the site. It also protects workers by shielding them from lawsuits so that they don’t come chasing you with a lawsuit.

  2. Covers property damage

    There’s always a chance that carpenters, electricians, or plumbers can cause damage to the client’s property. General liability insurance covers certain damages caused by the contractor’s team. A contractor can add an errors and omissions extension to its policy to ensure that the company pays for mistakes made by the contractor’s team. Essentially, the more coverage extensions the contractor carries, the more your property will be protected from disasters that may unfold during the project.

  3. Worthwhile investment

    Insurance is a worthwhile investment as a form of risk management. Instead of a company getting sued for more than its net worth, general liability coverage pays for a wide range of mishaps the business may encounter. It works as a hedge against legal and financial disasters. Without the right liability coverage, a business can collapse overnight. So it’s a long-term investment in business sustainability.

  4. Provides peace of mind

    By only hiring contractors that can prove they carry general liability insurance, you can feel relieved that you will not have to bear financial losses associated with the project. Sometimes weather and supply chain issues can create delays, but the right insurance can cover downtime. It’s imperative to work with professionals licensed in your state who carry appropriate insurance and certifications. The more professional the contractor you hire, the less chance of unwanted surprises.

  5. Required by law

    Another reason to only hire insured contractors is that many states require it as per law. Check with your state or a reputable contractor to find out what the law says about insurance for contractors. The main reasons laws are made surrounding insurance are to protect victims from financial devastation and to protect the contractors themselves from being sued for millions of dollars. State laws on insurance help reduce accidents and make people more conscious of safety issues.

Learn More About Contractors’ Insurance with Artisan Insurance Solutions

There are numerous other good reasons to get the right insurance in an age when customization matters. The overall purpose of insurance is financial protection. For more information about contractors’ general liability insurance, contact the team at Artisan Insurance Solutions. We are ready to answer your questions about the right insurance for your needs.

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