When you own a business working in other people's homes, protecting yourself from liability is critical. Contractor liability insurance can offer protection for your business in many situations, even if you are a small business working by yourself or with a handful of employees.
Property Damage Coverage
Accidents happen, but when those accidents cause damage to your client's property, you may find yourself liable for the damage and repairs. Something as simple as dropping a tool onto an expensive floor and damaging it or as extreme as a machine hitting the side of a house when lifting materials during a roofing job could be covered under your contractor's liability insurance.
If you don't have liability insurance, the cost of the damage and repairs will fall on you, and if the damage is bad enough, it could bankrupt your business. Getting liability insurance for these kinds of accidents is not difficult or expensive compared to the protection you gain from general contractor liability insurance coverage.
Bodily Injury Coverage
Working on someone's home and having a lot of tools and equipment around is part of the job. However, if someone gets hurt because of that activity, you may find yourself having to cover the costs of their injury.
Tools falling off a scaffold, equipment left where someone can trip on it, or any number of other scenarios could result in someone getting hurt while you are working. Your contractor liability insurance should have coverage for these situations and should extend to employees working with you as well as the homeowner or a subcontractor on the worksite.
Medical expenses from any accident can add up quickly, but if the injury keeps the person from working or in the hospital for an extended period, your business may not be able to absorb the costs. The contractor liability insurance can cover that expense, so talk with your insurance agent about how much liability insurance you need for your business when buying your policy.
Anytime you are involved in an incident that damages or injures someone, you run the risk of a lawsuit being filed against your business and you personally. Contractor liability insurance policies often have coverage for legal fees and lawsuits as part of the coverage to help protect you in these situations.
Facing a lawsuit for the work you did or something else, like perceived slander, false advertising, or damage, could get expensive. Even if you win your case in court, the lawyer's fees and the court costs can bankrupt a small business. The contractor liability insurance you purchase for your business is the best way to ensure that these costs don't leave your business struggling to survive, or worse, closing its doors.
Contact an insurance company that offers contractor liability insurance for more information.