Construction business owners aren’t stupid. You know that Contractor Insurance is a must-have. But, when last did you take a moment to appreciate the unseen benefits of insurance coverage? Maybe you’ve never actually given it a second thought. Hence, here’s a quick reminder some of the best benefits of your Contractor Insurance for Business Owners.
Protect Your Business against Lawsuits
This is the most obvious benefit. With Contractor Insurance Coverage, you’re reducing the overall risk if you’re sued. For example, there’s an incident at a property and the homeowner wants $5,000 to cover their costs. What would you do?
You probably will fight the claim all the way to court – and rightly so – but, it comes with hefty legal expenses.Moreover, whether you’re successful or not, those fees can be covered by your insurance policy. Thus, your insurer can cover those costs as well as additional damages awarded to the claimant.
But you already know this, right?
Reduce Your Stress
Contractor Insurance for business owners is a health benefit.
Why? With insurance coverage:
- You Don’t Have To Worry About Being Sued.
- need Not Worry About Financial Costs.
- You Don’t Have To Worry About Loss Of Reputation.
They say that stress is a silent killer. Furthermore, you might think that stress is just a part of being a construction business owner and that you just have to get on with the job. What many people don’t take seriously is the effect of stress on your overall health.
Avoid State Penalties
Small Business Owner’s Liability Coverage saves you money. You may think that your insurance only saves you money because your coverage protects your business finances from liability claims. But that’s not all …
For instance, in some U.S. states, it’s law to have proper insurance for your business. If, however, you don’t carry insurance, you could face being penalized financially. That’s unnecessary especially if it something you can easily avoid.
Don’t Lose Out On Jobs
Commercial clients won’t touch your contractor business if you aren’t insured. They simply can’t afford to. A construction company that isn’t insured puts a client’s project at risk. Clients don’t want to be liable for damages caused by your uninsured business, no matter how trustworthy you are.
You’ve got more chance of being hired if you have a General Liability Insurance Policy in your toolkit. All clients want to be assured they won’t be left out-of-pocket if something goes wrong. Your insurance is their back-up plan.
Nobody wants to think it can get this bad. But say your business is sued for $50,000, there’s no insurance, and the claimant is successful. You alone are responsible to pay those costs. As a business owner, you might be able to cover part of the debt, but not all of it. What would you do? Well, unfortunately, you could go bust. The consequences could include:
- Losing your business and your income
- Losing your house
- Damage to your marriage
- Losing your investments
- Losing your reputation
When Contractor Insurance for Business Owners Doesn’t Pay
You won’t get these benefits if your insurance policies have not been adjusted to changes in your business. You may be under-insured. We advise all of our clients to have their insurance assessed regularly so that they don’t fall into this trap. You may believe that your business is adequately covered, but is it?