Building contractors have a lot to manage. They have to deal with employees, order supplies, ensure existing work gets done, and even be on the lookout for new business after the current job ends. This can lead to a huge balancing act considering the number of mistakes that lead to insurance claims.
With so much to juggle, how can these issues be mitigated? Having the right insurance policies in place helps quite a bit. Another solution is knowing and understanding the top claims, so you can be on the lookout for them. Here are the top five insurance claims that building contractors should keep an eye out for.
It just takes one missed step or accidental movement and the next thing you know, your employees have broken a client’s window or messed up their drywall. Property damage is the number one top claim made by building contractors for this reason: accidental damage happens regularly, and there isn’t much that can be done other than to file a liability and property damage claim and get everything fixed.
Since most contractors hire workers, whether they’re permanent employees or temporary workers, it’s a good idea to have a workers’ compensation insurance policy in place. This insurance kicks in when employees are injured on the job, which can easily occur in a building that’s actively being repaired. Workers’ compensation will pay your employees’ medical bills, as well as compensate them for any necessary time off of the job, so that you don’t have to.
Delays and Disruptions
Even since the pandemic, certain types of home improvement materials have been hard to come by. A missing bathroom vanity or a number of backordered windows can set the project back, leading it to not get done on time. In order to avoid having to pay for these delays out of pocket, which can add up quickly if your contract has you being penalized for going over the allotted time, your business disruption insurance can handle them.
Contractors require a lot of equipment. From using generators to power tools, to compressors, to battery-operated cordless drills and saws, you risk losing money when these tools go down and need to be repaired or replaced. Your equipment breakdown insurance can shoulder some of the costs, paying for repairs, rentals, or replacements as long as the tools qualify.
Whether there was an accident in the yard of a house that led to other homes being damaged, or even a small fire caused by an employee, a saw, and some wood planks, your business could end up getting penalized by having to pay for repairs out of pocket, as well as the overall mental stress on the home’s owners. Thankfully, you have professional liability insurance to pick up these costs.
Have Questions? Contact Charlotte Insurance
Want to learn more about the various types of insurance for contractors? Contact Charlotte Insurance. Our agents can explore and explain all available options and put together the insurance coverage plan your business needs.