Getting professional liability insurance is becoming a professional norm in almost every field of life. Whether you are a doctor working in a hospital, a nurse, a lawyer, a teacher or a contractor; it is mandatory for you to get professional liability insurance in order to protect yourself against any professional liability risk. If you are a contractor without any sort of professional liability insurance then it’s about time that you should get contractor liability insurance for yourself.
What is contractor liability insurance?
Anything can go wrong during the day. It’s best to get a pre-accident protection for yourself. There are many contractors who lost their professional careers or their businesses just due to professional liability. Any worker can get injured or the building under construction can receive some serious sort of damage, in such a case getting coverage under the contractor liability insurance is very important.
You must bear this in mind that facing a lawsuit or following a lawsuit even in defense can be extremely expensive for any contractor. There are many contractors who went out of business due to the fact that they got sued and wasted all their money in defending their case. The attorney fee, court fee and many other expenses are enough to make you bankrupt. So in order to protect yourself from such disaster, it’s best to go for contractor liability insurance as soon as possible.
Risks covered in contractor liability insurance:
Contractors face many different types of risks in their daily routine. Most of the contractor liability insurance plans provide coverage for following risks:
- Various incidents are covered such as damage to the construction site due to wind, sudden fire eruption, explosion, lightening or thunderstorm, theft and rise of the vandalism.
- Any accident happening on the worksite due to which any worker got injured.
- Damage to the construction equipment
- Damage to the machinery used for construction purposes
Things not covered:
Most of the contractor liability insurance plans usually don’t cover natural disasters such as earth quake and flood but these things can also be included in the plan by making an addition to the value of premium. There are also some insurance companies that offer separate insurance plans for natural disasters.
Requirements for contractors’ insurance plan:
The thing that should be kept in mind before going for the contractor liability insurance is that this insurance plan is only effective during any particular job. If the contractor is working on any job then he will be protected by this insurance but as soon as the job will end, the insurance protection will also terminate.
Contractor liability insurance is also available in group form where the employers get all their contractors and sub-contractors protected under a single insurance plan. Even if you are protected under a group plan offered by your employer, still its best to get an individual plan for yourself because you might never know that how much a lawsuit will cost.
If you want to get contractor liability insurance plan then the insurance company would require you to submit information about your job, starting date of your construction project, duration for the commencement of the construction, physiological conditions of your construction site, details regarding the machinery and equipment that will be used in the project and details about your co-workers.