When asked what the main benefits of Contractors Liability Insurance Coverage were, here are their most common answers.
#1 They wanted protection against any injury claims
Most contractors fully appreciate that their jobs can be risky and demanding, so they pay for California contractor’s general liability insurance. They are able to sleep at night knowing they are covered for any injured parties, paying for any medical bills, or even funeral expenses for an incident outside of their control.
When a contractor faces an uninsured injury claim, they can quickly face a financial crisis. Many contractors choose to take out liability insurance because they’d heard stories or read the news about people forced to pay claims to compensate for injuries. Many of these people had been pushed in bankruptcy and lost everything that could have been easily avoided.
Even though the annual premium a monthly payment may seem expensive, it pales in comparison to the loss of your business or worse your home. II, a court dictates that you need to pay compensation, this could entail massive sums of money, forcing your you out of business altogether.
#2 They wanted protection against property damage
Construction jobs sometimes go wrong; damage can be caused to either their client’s property or neighboring properties. This damage can even hinder local businesses from operating. As a consequence, they may be forced to pay compensation to any affected parties. This type of scenario is not something that a small or medium-sized contractor can afford to deal with without insurance. Most people take out this type of insurance cover to prevent having their pay offended parties. They want the peace of mind that comes with protection against any damages or unexpected losses.
#3 Cover any legal expenses
If an unexpected accident or injury in the workplace and they’re being forced to defend themselves against the claim, the cost of this and other charges associated can sometimes run into thousands of dollars. If you have the correct liability insurance, it will cover attorney fees, witness fees, and any associated court expenses. You will not have any out-of-pocket expense to hire the best attorneys possible to support your case.
#4 Protect against frivolous lawsuits
In recent years there has been a series of cases where contractors were sued for copyright infringement because their work was deemed to have copied the designs of someone else. If found to be accurate, these cases can result in vast payments of compensation, taking out liability insurance will cover you for this.
#5 Peace of mind
Nobody is suggesting that liability insurance will give you the license wot suddenly let your health and safety standards slip. We are saying that you face enough daily challenges, difficulties that already get in the way of your security, and peace of mind. Protecting against potentially damaging or frivolous lawsuits will leave you with one less thing to worry about. Just make sure that your premiums are paid on time. The insurance companies and your attorneys will look after everything else.
Depending on the level of risk attached to the work that you do, this will be reflected in your insurance coverage cost. It shouldn’t be seen as a negative if you have more risk involved; the possibility of an unforeseen incident or accident is much higher, meaning your need for this coverage even more.
These are just some of the Benefits of Contractors Liability Insurance Coverage, as you see that continuously outweigh the premiums paid.