Contractors are business owners. You are ultimately responsible for your finances, liabilities, and risks. As a result, finding the “just right” insurance coverage is crucial to protect not only your business but also your personal assets and financial interests. In the course of your work, you face many risks that can result in financial losses, including the following:
- Accidents
- Property damage
- Lawsuits
Without the right insurance coverage, you will find yourself paying for these losses out of pocket. Unfortunately, these expenses and costs add up fast and may ultimately bankrupt your business. Understanding your risks, your needs, and the type of insurance protection available to you can help. Here’s what you need to know.
Legal Requirements
Depending on the industry your business operates in, you may be legally required to have certain types of insurance. Failing to have the right types of insurance (and amounts of coverage) can result in fines, legal fees, and loss of business. At a minimum, you want to make sure you have all the insurance protection you are legally required to purchase within your industry and in accordance with local, state, and federal laws.
Protecting Your Business
Liability is no small concern for contractors. If you cause damage to a client’s property or someone is injured while you are working, you may be held legally responsible for the costs of repairs or medical expenses. Liability insurance can not only help you pay for the repairs and medical expenses but also cover vital legal expenses if you are sued.
You should note that any one of these expenses can be devastating to your business and your personal and financial assets. When you face these costs on multiple fronts, it can become overwhelming. That is why many contractors invest not only in liability protection for their businesses but also in umbrella insurance that offers an added financial buffer if their existing liability coverage limits are insufficient.
Peace of Mind
You can’t put a price on peace of mind. Knowing your business is protected in a way that also protects your personal financial interests offers an amazing amount of peace of mind so you can focus your attention on getting the job done right rather than worrying about what will happen if something goes wrong.
Professionalism
When you have sufficient insurance protection, it simply appears more professional. It’s a way of offering your clients additional peace of mind and letting them know that you are a professional who takes your reputation seriously. It allows clients to trust you more easily because investing in insurance shows them that you are willing to take steps to protect yourself and the clients you serve.
Cost Savings
For some contractors, insurance may seem like an unnecessary expense. However, it only takes one incident to cause financial devastation for your business and for you personally. In the end, having the right insurance can save you buckets of money and protect your ability to continue earning money in the future. Insurance is the one product you buy hoping you’ll never need to use it. However, not having it when you need it can have far-reaching consequences.
Getting the right insurance coverage, as a contractor, is crucial to protecting your business from many of the risks you face. Not only does insurance protect your business, but it also serves to protect your clients and your personal assets. Taking the time, now, to understand your risks and choose the right insurance coverage offers the confidence and peace of mind that only comes with knowing you are prepared for the challenges ahead of your business.
Arnold Insurance is happy to help with all your concerns and can answer any questions you have about your coverage needs as a contractor. Our mission is to help you get the protection you need as a contractor and to deliver the peace of mind that comes with knowing you have the right insurance for your business.
Contact us today and let us assess your insurance situation to see if we can help you mitigate your risks and maximize your protection with insurance protection that is the “just right” fit for you, as a contractor.