You’ve taken the plunge and are starting up your small contracting business. However, did you know that almost 20% of small businesses fail in their first year?
You will want to be on the ball with everything you do. One way to protect yourself from closing your business’ doors is to get contractors insurance.
Having adequate coverage is like building a strong foundation for a home. Learn a little bit more about the benefits of insuring your contracting business.
Create a Stable Financial Foundation
You have personnel to manage. There is an inventory to keep track of. You have clients and employees alike asking you all sorts of questions.
And that is just a normal day in the life of running a business.
Costs and finances are a particular source of stress. When one aspect takes a hit, your finances crumble. This can especially be the case when you have a lot of moving parts as a contractor.
Employees could make mistakes. Equipment could fail, or materials are faulty. Your client’s claims could pile up.
Without insurance coverage, this could cause your business to go into bankruptcy.
Even if you don’t go bankrupt, your business could take a serious financial hit. Being prepared with insurance can keep your finances in check.
Contractors Insurance Can Cover Liability
You are responsible for a lot of moving pieces. You may find yourself liable well after a project is completed.
For example, what if your contractor business oversaw a remodel of a home, and your employees installed a new banister for the stairs. Then, three weeks after they completed the project, a homeowner grips the staircase, and it falls apart. She falls off the stairs and seriously injures herself.
The homeowner is now facing medical bills and time off for rehabilitation. She blames your company, and now you are in the middle of a personal injury claim.
Small business insurance can help cover all claim costs associated with this event.
There are other claims your business could face, such as worker’s compensation and commercial automotive claims.
A quote for general liability insurance can help you get started on finding the best coverage for your contracting business.
Be Prepared for Any Legal Issues
Sometimes, a claim results in litigation. No business owner wants to see a trial. It takes a lot of time and can be emotionally draining.
And that’s on top of all of the legal fees.
This is another worst-case scenario that you should prepare for. However, an insurance company can help you find an insurance policy that covers these costly legal fees.
That way, you can focus on navigating the trial process.
Protect Your Business with Adequate Contractors Insurance Coverage
Every contractor business is different. Some work with boats, others on houses. Each business will require certain types of coverage.
Regardless of what kind of contracting work you do,contractors insurance can be the thing that keeps your business from sinking.
Contact us today to determine which policy would be best for your business.
Top Contractors Insurance Services is a full-service contractor insurance agency handling workers compensation, general liability, construction bonds, and auto quotes.