As a contractor, you need protection against the potential liabilities you face in order to keep your business moving forward. You’ll need to remain in operation even after someone is hurt physically or financially.
Contractors aren’t the only individuals exposed to risk in a client/ contractor relationship though. When an individual hires a contractor, they also need protection. In this case, clients need protection against issues that arise due to the contractor’s inability to complete a job according to the client’s needs.
There are two different policies able to appease each of these needs: Bonding and Contractor’s Liability.
Contractor’s Liability Insurance
To protect your business against claims that can arise due to carelessness on a jobsite or an accident that happens with your equipment, then contractor’s liability insurance is a must-have for your insurance portfolio. As with any liability policy, contractor’s liability protects you against claims from clients or subcontractors who are hurt or otherwise adversely affected by the activities of your business.
Contractor’s liability has deductibles and limits which have their own parameters of what is and isn’t covered. When you take out a policy, be sure to address any specific challenges that your business faces that expose you to liabilities you wish to have covered.
Bonding
A bond is a guarantee by a third party that you, as a contractor, will complete the work that has been asked of you. It also guarantees you will pay for all supplies you order and you will produce quality work for your clients. As a bonded contractor, you have paid a company to award financial compensation to a client if you walk off their job without meeting any of the previously mentioned expectations.
When you are a professional contractor, you always want to work in a professional manner. For clients, it can be difficult to tell the difference between a professional contractor who takes their work seriously and one who isn’t qualified for the work they need. One of the easiest ways to show clients you respect their time and money is to have yourself bonded and covered by a liability insurance policy.
If you are considering bonding your employees and subcontractors, give us a call at (214) 824-8888 and we can discuss the many bond options and protocols with you.