If you are a contractor, then you have probably heard about liability insurance. In fact, I’m pretty sure that people around you have been mentioning it quite a lot, claiming that you should have it for one reason or another. You yourself might have become interested and decided to find out more about that whole concept.
No matter how many things you read and no matter how much you learn about contractors’ liability insurance, one question will always bother you. That is, until it is properly answered, which I hope to do today. That is the question of why contractors need to carry liability insurance at all. I suggest you read on because you’ll find some of the reasons below.
Protection At Its Best
Have you ever thought about what would happen if someone would sue you claiming that you are responsible for an injury of theirs or some kind of damage to their property? Oh boy, just think about the legal costs for a second. Then, add all the other costs that might ensue, including the damages resulting from that very lawsuit. How on Earth are you going to pay for all that?
You should have thought about that in advance, to be honest. Injuries, damages and lawsuits are not exactly a new concept that nobody has ever heard of before. These things happened before, they happen today and they will keep on happening in the future. It’s your responsibility to be properly prepared for a situation like that and if you aren’t, well, that’s on you too.
How can you prepare for this, though? If you guessed that you should have liability insurance to cover the costs, then you are really starting to pick up what I am saying. That’s the correct way to prepare. This insurance can cover all the legal fees and the resulting damages after the lawsuit. I’m pretty sure people have many times thanked God for having this insurance after finding themselves in a situation like the one described above.
Higher Protection Means More Clients
Try to put yourself in the shoes of your clients just for a few moments. Would you rather work with someone who has contractor insurance, or with someone who hasn’t even given this idea a thought? If you are finding it hard to comprehend how this could possibly affect any of your clients, let me quickly elaborate on that.
If you don’t have this insurance, your clients can get rightfully worried that they might be held responsible for any harm and damage that can be caused by your work. That sounds unfair, doesn’t it? Well, that’s because it is unfair, but it doesn’t mean that the clients will trust you or anyone else that this won’t happen.
Given that they won’t take your word for it, clients might actually require their contractor to carry liability insurance. What does that mean for you if you don’t have it? It’s simple. It means that you won’t get the contract and that one of your competitors will get the deal that you have been dreaming of. I know I wouldn’t be prepared to let that happen and how about you?
The Law Is The Law
Depending on where you live and the industry you are in, you might actually be required by law to carry liability insurance. I believe that this is for the best because having it be required by law means that there are less chances of losing clients, as well as fewer chances to be in danger of not being able to pay huge legal costs. If you think about it closely, it’s a win-win situation for everyone.
I don’t suppose you want to be the contractor that does things that are against the law, do you? Nobody likes to be in fear of their business collapsing any second just because they didn’t comply with rules and regulations. If you want to make sure that you are doing everything the right way, i.e. if you want to do what’s in compliance with the law and simultaneously what’s best for you and your clients, then you shouldn’t even think twice before getting yourself liability insurance.