A construction project often has several people involved, from the management team to the builders. The building contractors are the most influential people present on any construction site. They are in charge of planning and coordinating all construction activities from start to finish. They are handed the task of overseeing the whole construction project and completing it within the given timeline and budget.
The responsibilities of a contractor often vary according to what was written in the contract. The contractor is generally required to plan, lead, execute, supervise and inspect a construction project. They must create a project plan that will ensure the project is completed within the allocated time and the stated budget. They also ensure that the project follows all the legal requirements and local codes by acquiring proper permits and licenses.
Contractors ensure the implementation of proper procedures that will guarantee the safety and health of other workers. They should be able to take control of unprecedented events such as accidents and have sharp decision-making skills. They also ensure that all equipment, materials, and other items necessary for the project are well taken care of. They are also required to appoint subcontractors to assist them with parts of the project that are beyond their comprehension.
There is a wide range of tasks and several people who are managed and controlled by a contractor. It opens the door to a wide range of liabilities and risks, including damage to property and injuries to employees. The accidents that occur in construction sites can cause damage to the reputation of a contractor or even put them out of business.
The appropriate insurance helps to mitigate such risks and protect your business in case of any setbacks. Acquiring a contractor insurance cover can assist you in covering expenses that could arise from any damages incurred.
What Is A Contractors Insurance?
Contractors insurance protects your organization or business from financial debts that could arise from any work-related accidents. The accidents could involve third-party injury, damage to property, and improper construction of structures.
Subcontractors, independent contractors, and other employees fit into the third parties who could be covered in case of any accidents or injuries caused. As a contractor, you should pick the right coverages and limits that would suit your company to protect it from any financial threats.
Importance of Contractors Insurance Coverage
A proper insurance cover will protect the money, time, and hard work you have invested in your business. An accident or injury to employees could prompt you to sell your hard-earned assets or push you into bankruptcy without proper funding.
Clients or property owners may ask for proof of insurance from contractors before handing them a job. The clients will have more confidence in your business once they see that you have the required licenses and effective insurance covers. They often look for contractors with liability coverage to avoid getting into trouble in the occurrence of an accident.
Subcontractors also require a reliable insurance policy to protect their company's work. General contractors look to employ subcontractors with contractors liability insurance to avoid running into financial problems caused by damages. Most states put across a law that would deem general contractors responsible for any damages if their subcontractors do not have insurance cover.
A contractor is required by law to purchase worker's compensation insurance. The insurance cover ensures that your employees will be covered financially in the event of an accident. Without the coverage, your company will have to cater to all your employee's medical bills and missed wages. Your company could also receive a hefty fine from the government for lacking the compensation insurance cover.
Types of Coverage For Contractors
There are several types of insurance that a contractor should acquire before embarking on a construction project.
Contractors General Liability Insurance
It is one of the most common yet vital insurance covers owned by a contractor. The general liability insurance policies protect you from third-party bodily injury or property damage claims on a construction site. The cover will help you handle all legal and medical costs associated with injury to an employee.
It can cover the cost of replacing or mending damaged property in a construction site or workplace. If the client files a lawsuit against you for damage, the general liability coverage will cater to all legal fees. The contractors' liability insurance policy can also cover charges resulting from cases of advertising and copyright infringement.
Who Can Get General Liability Coverage?
As a contractor, you are held liable for any property damage or injury resulting from negligence. A general liability insurance policy ensures that you are protected from such events that could render your business bankrupt.
The cover protects general contractors and masonry, drywall, excavation, concrete, paving, and permanent yard contractors. It can also be acquired by roofers, welders, plumbers, carpenters, painters, and handy people working on a construction site.
Workers Compensation Insurance
It is a form of liability coverage that caters to the medical costs and lost wages when your employee gets injured on the site. Most states have a law that makes it mandatory for contractors to have a worker's compensation insurance cover before taking on any construction projects.
The insurance policy covers medical treatment, rehabilitation costs, disability income, and compensation to bereaved families for work-related deaths. Worker's compensation policy also offers protection to contractors facing lawsuits filed by injured employees or bereaved families.
Property Insurance
The cover ensures that your property is protected from damages caused by unexpected disasters such as fire, theft, and windstorms. A commercial property insurance cover will protect your business from financial loss caused by the destruction of property.
Other types of insurance covers you can acquire for the success of your business include;
- Professional liability insurance.
- Commercial auto insurance.
- Product liability insurance.
- Builder's risk insurance.
You can also purchase additional coverage for big projects as stipulated in your contract. The insurance policies will provide you with coverage for your extensive assets. The policies include;
- Leased equipment coverage.
- Umbrella insurance policy.
- Hired and non-owned insurance.
- Employment practices policy.
Call Thumann Insurance Agency
If you are looking for contractors insurance in Texas, contact the Thumann Insurance Agency in Dallas for the best services. Our experts will help you acquire the most suitable insurance for your business. We can offer you insurance quotes from a wide variety of verified insurance companies within our workspace. Call us at 972.991.9100 for your free quote.