There are hundreds of details to consider when starting a contracting business. You will need to spend money on equipment, staffing, and marketing. It’s important to understand that growing your business is just as important as protecting it.

You could expand your business into a strong and successful company, but without the right protection, just one incident can cause it to all come crashing down.

Every business owner is responsible to both its clients and employees to provide the best and safest service. You must cover your interests with the right insurance policy as a business owner.

Contracting businesses are twice as likely to experience an accident during their lifetime. Construction work can be dangerous for your employees, and there is always the risk of an accident that can cause property damage. To find out more about what types of accidents can happen on the job, learn more by visiting this page. Let’s take a closer look at a few of the crucial reasons that your contracting business needs to have liability insurance.

Legal Liability

On a construction site, there is always the possibility of an accident. With accidents comes the possibility that your company could be sued for liability. Your company could be responsible for physical injuries or damage to property.

To protect your company from personal injury claims or lawsuits for damages caused on the job site, you need to have a basic liability policy. Most general liability policies include the following coverage:

Personal Injury Liability

• Covers cases that involve defamation, copyright infringement, and slander.

Bodily Injury Liability

• Covers the cost of medical and legal bills associated with a physical injury

Property Damage Liability

• Covers the costs to repair or replace damaged property

Protection of Property

You have invested a large portion of your budget to purchase your equipment including specific technology, work vehicles, and materials. Clients have also spent a lot of money on their property.

If there is an accident or incident on the job that brings damage to either the property of the client or your property, your insurance will cover the amount of the loss. Without the right insurance, your company will have to pay out of pocket for damages that could eat into your profits.

Workers Compensation Claims

Your workers are the lifeblood of your company. If one of your employees gets injured on the job, they will want to file a workers compensation claim. This claim will help them pay for their medical bills and the costs associated with being unable to work.

If your company does not have the right insurance, you will be left open to lawsuits that could cost you thousands of dollars. Without workers compensation insurance, you may have difficulty finding the best employees, as many top candidates would prefer to work for a company that offers the right protection to their workers.

If you are starting a service or contracting business, it’s your responsibility to ensure that you are protecting your assets, including your workers and clients. Talk to your broker about what type of liability protection you need to safeguard the future of your business.