Why It's Important To Obtain Contractor Liability Insurance Before You Take Your First Job

7 December 2018
 Categories: , Blog


If you want to get more work as an independent contractor and protect yourself from a financial disaster due to a lawsuit, then you need liability insurance. Liability insurance may even be required by law in certain cities in order for you to work legally. It's a matter to take seriously for your own protection. Here's why contractor liability insurance is so important.

You'll Probably Need It To Get Work

A big contractor won't subcontract work to you unless you're properly insured. Homeowners also know how important it is to check for proper insurance before they let a contractor do work on their homes. If you don't have proof of insurance, your job opportunities will be very limited if they exist at all.

You'll Have To Pay Your Own Court Costs Without Insurance

One thing liability insurance covers is court costs. Some people won't hesitate to sue you for doing something wrong or making a mistake. You never know when you'll run across someone like this when you take jobs from random homeowners. When you have liability insurance, the insurance helps pay for court costs. That could save you a lot of money and may even save you from losing your business if you're surviving on a tight profit margin.

You'll Have To Pay For Damages And Medical Bills Yourself

No one is perfect and accidents can happen at any time. While you wouldn't purposely destroy someone's home or harm them in any way, an accident that's your fault could cause damage to a person or their property. When you don't have liability insurance, you would have to pay the person's medical bills out of your own pocket. You would also need to pay for repairs to the property that happened because of something you did. Repairs and medical bills can run into the thousands of dollars and put you out of business if you don't have liability insurance. Working in other people's homes with tools and machinery is a risky business when you're not protected with insurance.

Contractor liability insurance is worth the monthly cost when you compare it to how much you stand to lose in case an accident ever happens. You could go out of business overnight before you've even had a chance to become a success. It's best to start your contracting business off right and make sure you carry enough liability insurance to protect you and your future. Talk to an insurance agent about the amount and type of insurance you need for the type of work you do to make sure you're fully covered.


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