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Liability Insurance FAQ
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Construction Liability Insurance

Any contractor, whether they operate a large or small operation, should have construction liability insurance. Even when it is not required, the savvy contractor will nonetheless make such coverage a part of their insurance policies. Normally, this liability insurance can be packaged with other necessary lines of insurance needed for running a commercial operation. This keeps the cost of premiums under control, and makes record keeping a great deal easier.

Professional contractors should operate their businesses responsibly, and part of that is carrying appropriate insurance coverage. Even though it may seem difficult to comprehend having to pay yet another insurance premium, the expense is actually worthwhile, even if the contractor only gets sued once in the course of their career. Attorney fees and court costs add up quickly, and that’s even before the case is settled. Should the court find in favor of the plaintiff, the contractor without liability insurance may find themselves paying for damages out of their own pocket.

Construction Liability Insurance - Why Do You Need It?

These kinds of expenses can easily be enormous. They may even endanger the personal financial stability of the contractor as well as the security of their business. Seen this way, the cost of construction liability insurance premiums suddenly becomes quite reasonable.

In some instances, contractors will even be required to prove that they carry sufficient liability insurance before being permitted to begin work on a project. Clients appreciate the peace of mind they get from knowing their contractor is looking out for their best interests by protecting them with the right kind of insurance coverage. Contractors who work with subcontractors on a project should not hesitate to require that the subcontractor also carry appropriate liability insurance, since the contractor could be held partially responsible for problems caused by the subcontractor. The subcontractor should be able to provide proof of coverage before beginning work.

Construction Liability Insurance -  Quotes Tips

Regardless of the size of their operation, whether they are just starting out, or have been in business for decades, each contractor should carefully shop around for the best insurance value. This may not necessarily mean picking up the cheapest policy, but rather looking for the insurance that offers the best coverage for the best price.

Construction liability insurance protects the contractor in the event of injury or damage occurring on the job site. With such a policy in place, the contractor is ready to ply their trade with confidence, knowing their interests have been covered.