Avoid These Costly Mistakes: The Essential Guide to Contractors Insurance

Written By Charlotte Insurance on October 10, 2023. It has 0 comments.

Avoid These Costly Mistakes The Essential Guide to Contractors Insurance

Working as a general contractor can be a lucrative business. Not only that, but you’re helping people beautify their homes and play a significant role in increasing the overall worth of the structure. With that said, there are many mistakes that a contractor can make. From failing to adhere to safety precautions to missing important deadlines, there are plenty of things that can affect your business.

How can you avoid these costly mistakes? Having the right insurance in place when the unexpected strikes definitely helps.

Not Having Working Equipment

Contractors and their employees require a lot of equipment. From air tools run off of a generator to standard hand tools, without them, the job wouldn’t get done. Plus, those air tools make everything go faster. What happens if your equipment goes down? You won’t be able to replace that roof, cut those boards or that drywall, or make sure that everything you’re installing is properly connected to the subfloor and studs. Thankfully, there’s a solution at hand: equipment breakdown insurance. These policies are designed to pay for repairs and parts, as well as full replacements if necessary.

Missing a Safety Training

Safety training is an important part of every contractor’s job. Not only do they need to ensure that the safety precautions are properly followed (see more on that below), but they also have to make sure that their employees know how to be safe in the workplace. This can prevent workplace accidents that damage the client’s home and lead to costly repairs on top of the existing job. Liability insurance can help prevent you from having to pay for these additional repairs, including supplies and labor, out of pocket.

Not Ensuring That Safety Precautions Are Followed

Yes, the people working for the contractor tend to be fully-fledged adults who can make their own decisions. However, this doesn’t mean that they’re completely responsible for any injuries that they suffer in the workplace. It’s up to the contractor to make sure that everyone follows those safety precautions to the letter. Sure, accidents will still happen, but they become just that: accidents. And thankfully, the contractor’s workers’ compensation insurance will help cover medical bills and lost wages.

Not Meeting Deadlines

Homeowners expect their contractors to get the job done on time. After all, they’re planning to unveil their new bedroom, sitting room, or office addition at their holiday party. What happens if the contractor ends up running behind schedule? Whether this is due to workers who don’t really know what they’re doing or a lack of tools and supplies, the contractor could end up in big trouble should the homeowner sue for breach of contract. Liability insurance is one solution here, as it would help provide coverage for those circumstances and more.

Have Questions? Contact Charlotte Insurance

Want to learn more about insurance for contractors before the unexpected strikes? Contact Charlotte Insurance. Our agents can explore and explain all available options and put together the insurance coverage plan your business needs.

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