In addition to covering potential financial losses, a contractor’s liability insurance can also provide coverage for property damage caused by the contractor’s work. This includes any damages that occur on-site as a result of faulty workmanship or incorrect tools and materials used during a project. In some cases, it may also include coverage for medical expenses associated with accidents that occur on-site.
When looking into contractor liability insurance, it is important to consider all available facets of coverage. Some policies will offer general liability protection while others may provide more specific coverage such as product liability, professional indemnity, workers’ compensation and pollution liability. Understanding what is covered under each policy is key to ensuring that your business is adequately protected from potential losses.
Another factor to consider when selecting insurance is the deductible amount required by the policyholder before any claim can be paid out. Deductibles typically range from three hundred dollars up to one thousand five hundred dollars depending upon how comprehensive the policy is and the type of coverage that needs to be provided. By setting an appropriate deductible amount for your policy, you will ensure that you only pay for the most essential forms of coverage while still being able to protect yourself in case something goes wrong.
It’s important to understand what limits are placed on contractors’ liability insurance policies so that you can better manage your risk profile and have peace of mind knowing you are fully protected while working as an independent contractor or running a contracting business. For example, there are limits placed on how much money can be paid out per claim and the total amount available under the policy overall to ensure claims do not exceed its limits, knowing these limits ahead of time can help you make more informed decisions about what type and level of coverage best fit your individual situation and helps protect you from future losses resulting from contract work gone wrong.
