Learn how you can avoid costly insurance issues.
As a contractor, you understand how important it is to create a detailed budget for major projects. However, many contractors do not take insurance issues into account when organizing their budgets. As such, a major insurance mistake or oversight can throw the entire project into the red. To avoid costly insurance issues, here are some of the precautions you should take before beginning a major project.
- Require Proof of Insurance
First, you should require everyone involved in the project to show you their insurance certificates. These certificates will verify that every party has the necessary coverages while also providing important information about their insurance provider and coverage limits. Be aware that many subcontractors may try to skirt by with minimal insurance coverage. Be sure to review all these certificates with extra scrutiny to ensure that you will not end up paying for their mistakes.
- Hold Subcontractors Liable
Your project will run into fewer issues if you specify in your contract that subcontractors will be held liable for their own issues. For instance, in your contract, you should include a condition that subcontractors will be held responsible for the deductibles or losses you have to pay as a result of an error or misstep on their part. When subcontractors understand that issues will affect their income, they will be far more careful as they complete their work.
These are two of the best ways to avoid costly insurance issues on your next construction project. Want to find the right commercial coverages to fit your needs and your budget? Then don’t hesitate to contact us at Artisan Insurance Solutions. We are ready to assist you with all your business’s coverage needs today.