Contractors can have a unique level of risk when it comes to performing work for their clients. Effectively managing this risk will be necessary for ensuring that you are protected in the event of a major accident or other problems while working on a client's project.
Protect Yourself From Potential Legal Action
In the event that there is a serious accident or mistake with the contracting work, the client may decide to pursue legal action against you. This can be expensive even if you are successful in defending the claim as you will have to pay for legal representation to manage these matters for you. Professional insurance coverage can help to protect you against these claims as it may provide legal representation in the event that you face a lawsuit as well as representing you in discussions to settle the claim. In the event that damages are owed, the insurance will pay for them up to the coverage limit for your particular policy. Without this protection, you would be personally liable for the costs of defending yourself in these instances as well as for the work involved with finding an attorney and managing the discussions.
Stay In Compliance With Your Licensing Requirements
As part of the process of obtaining a license to work as a contractor, you may need to provide proof of liability insurance. Without this coverage, your application can be denied. Unfortunately, some individuals may fail to keep these policies updated to account for the level of risks that they will face in completing projects for their clients. As your contracting business grows and you find yourself undertaking more elaborate projects, it is important to periodically conduct an assessment that will allow you to accurately determine the amount of risk that you are facing so that your liability coverage can be updated to reflect the current risk level. Failing to do this can leave you personally liable for damages that may exceed the coverage for your policy.
Bundle With Your Other Professional Insurance Policies
There are many types of insurance that you may need to carry to make sure that you are protected against the risks that working for yourself can carry. Bundling the various commercial insurance policies that you need into a single plan will often make it substantially easier to handle the payments for the plans, as well as reducing the total cost of the commercial insurance. One of the advantages of bundling our policies is that you may be able to enjoy these benefits without having to reduce or compromise the quality of the professional coverage that you carry.
To learn more, contact a resource that provides contractor liability insurance.