The Importance of Contractors Insurance

Posted on: December 15, 2016 by Goodrich & Watson

If you are a carpenter, drywall installer, electrician, landscaper, mason, or any other type of contractor and are not already aware of the importance of Contractors Insurance Programs, you’re jeopardizing your business! Contractors face risks every day, and can be held responsible for myriad liability issues. Insurance is a safety net that can protect you from financial ruin if you find yourself facing an expensive lawsuit.

Contractors Insurance Programs: Legalities to Consider Before Hiring Contractors

Contractors are not the only people who should be concerned about contractors insurance. If you hire contractors, you need to verify their proof of insurance before allowing them to perform work for you. Otherwise, you could be held liable for any costs if a contractor is injured or an accident occurs on your property. As Angie’s List explains, there are two types of contractor’s insurance.

• Liability insurance covers property damage or injuries (it usually doesn’t cover the cost to repair or replace shoddy work. Always choose a bonded contractor, as the bond covers workmanship issues.)

• Workers’ compensation insurance pays injured workers for lost wages and medical expenses, and pays out death benefits to families of contractors killed on the job.

Hiring a contractor? Buyer beware! Verify the company’s certificate of insurance with the insurer listed on the document. If you are a contractor, make sure you have sufficient insurance to protect yourself and show your customers you’re in compliance with the law.

About Goodrich & Watson

If you’d like to learn more about your risk exposures as a contractor, and how to protect yourself with insurance, contact us at Goodrich & Watson. Our independent insurance agency serves residents and businesses throughout Virginia. When you turn to us to protect you and your home, automobiles, and personal valuables or your business property and assets, you can depend on our expertise, experience and attentive service.

Posted in: blog Business Insurance Contractors Insurance Professional Liability Insurance Virginia Worker's Comp

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