Talking about contractors or those who give services to any homeowners such as kitchen remodeler, cleaning service, and other services, we must think of insurance. The question is “do contractors need insurance? And who do contractors need insurance? Well, the quick answer to this question is “yes, they need insurance”. Every contractor needs insurance so that they can safely do the job without worrying about any bad condition.
General Liability Insurance
Any contractors must have liability insurance or simply called commercial liability insurance which is very important for any independent contractors. Whether you are working for a big company or work independently, general liability insurance is a must. There are some protections that you can get from this insurance such as protection from slips and falls, property damage, libel, slander, body injury, and others. You have no idea when this nightmare happens to you during the project.
Tool and Equipment Insurance
The second insurance that a contractor needs to have is a tool and equipment insurance to cover the tools you currently use. Somehow, as a contractor, you use a lot of tools to do the job and the tools may be very expensive to afford. In a certain case, your tools are broken in the middle of the project, while you do not have money to replace it. Or your tools may be stolen when you keep it inside your car. Therefore, this insurance will cover your tool and equipment so you can get the replacement for free.
Personal Accident Cover
As an independent contractor, you do not know what will happen to you during the project until an accident occurs and make you wounded. Nobody will take responsibility for your accident unless you have personal accident insurance. This insurance will protect you from losing money. In this case, you can take a rest for a week while you still get paid to substitute your weekly income. Suppose you work as a windows cleaning contractor, infrared inspection services contractor, builder, or a roofer, personal accident insurance is a must.
Commercial Legal Expense
Another type of insurance that a contractor needs to have is a commercial legal expense that can protect you against any costs for certain cases. For instance, when you get an accident in the middle of the project, you may take it to the court. But, it may cost a lot of money. So, this insurance will cover every cost and tax including Vat investigation. It will also protect you from commercial tenancy dispute or employment disputes.
Commercial Vehicle Insurance
As a contractor, you need a vehicle to bring your equipment and tools. You may not know when an accident may happen to you while driving the car. Sometimes, your vehicle may be stolen along with the equipment. So, this commercial vehicle insurance will take care of it to protect you when you are driving the vehicle.
Finally, that’s all you need to know about contractor insurance. If you ask who do contractors need insurance, then the answer is that every contractor needs insurance. You have no idea what will happen to you when you do the project. Well, those insurance types will cover everything for you.