Covering a Contracting Job with General Liability Insurance

If someone hires you to do home contracting, he or she is tasking you with sensitive projects. A client also expects you to complete all home contracting work in a safe and timely manner.

Being a contractor means you have a lot of access to another person’s home and their most valuable items. You deal in complicated work that is sometimes dangerous. Even though you are a trained professional, there’s always a chance that something could go wrong. You or an employee could damage a client’s property or injure that person.

That’s why you need liability insurance for your contracting business. Your work mandates protection for you, your employees, and the property and well-being of clients.

Most state laws require contractors to carry some form of general liability insurance. As you think about getting a policy, consider how liability coverage can protect your contracting work.

Potential Risks Faced by Contractors

Every contractor specializes in certain tasks. Some may lay flooring, others might install piping or widows in a home. Any contracting work could lead to damages to the home or to another person.

Buy a policy that specifically addresses risks that your line of work poses to a project. A plumber faces risks different from those of someone who installs windows. Therefore, their individual contractors insurance policies need to cover risks in different ways.

Additionally, make sure that your policies cover common risks faced by all contractors. Policies should protect:

• Property damage risks. If you or an employee damages the client’s property, coverage may help you.
• Client injury risks. This policy can help a contractor cover damages in case a client gets hurt because of the contractor’s work.
• Employee injury risks. Also known as workers’ compensation coverage, this insurance will protect employees. If an employee gets hurt or sick on the job, this policy can provide for the employee’s needs while he or she recovers.

There are many ways to comprehensively cover contracting work. Don't just stop with these coverage elements.

Guard Against Liability Risks

General liability insurance can help you in case a liability incident happens. However, it can’t guarantee that such an accident will not occur.

It is up to the contractor to take precautions against insurance risks.

• If you’re in contracting, do your work completely to avoid making negligent errors in your work.
• Warn clients of any threats that unfinished work poses. Don’t allow clients close to dangerous work without proper protection. Remind them of proper upkeep protections and safety risks.
• Require all your employees to abide by safety regulations at all times.

With liability insurance, you can protect your assets in case an accident occurs. Nonetheless, take steps to protect your employees, clients and work from negligent damages.