Everyone is familiar with the old Murphy’s Law quote, that anything that can go wrong will go wrong. A lesser-known corollary deals specifically with general contractors, and goes, anything that can go wrong will go wrong, and at the worst possible time.
Every independent contractor who has been in business for any amount of time will be able to attest to the veracity of that statement. Every contractor knows the frustration that comes from dealing with the little “surprises” that tend to pop up on nearly every job; the equipment malfunctions, the materials which do not come in on schedule, the weather…if you can think of it, it’s something that can go wrong and throw a monkey wrench into your day to day operations.
For the larger risks—on the job injury, mechanical failures, natural disasters, product malfunctions, and more—most contractors carry independent contractor insurance. In fact, if you’re a contractor who employs others, chances are that some sort of insurance coverage is mandated by state law, and with good reason.
You’ve probably put a great deal of effort and time into building your contracting business; the last thing you want is for some unforeseen contingency to take all that away from you. And in today’s litigious society, where one person can sue another because their cup of coffee was too hot, it’s a good idea to maintain all the coverage you can afford, especially when you’re talking about a business in which accidents can so easily take place. For you, independent contractor insurance isn’t so much an option as a necessity.
As is the case with any commercial venture, there are myriad risks involved simply by being in business. All it takes is for a passerby to slip and fall on an errant nail or drywall screw lying on the sidewalk. Without insurance, the person doing the falling could wind up suing you for more than the net worth of your company. Being covered by a good independent contractor insurance policy means you not only won’t lose your shirt in the deal, but will be able to continue operating your business while the case is being litigated.
Also, as a contractor, you may find yourself liable for work you completed months, or even years, earlier. If a plaintiff can show reasonable evidence, for instance, that you improperly installed some pipe and that the resultant leak produced mold in the walls which lead to health problems (seems farfetched, but it has happened), you could be looking at a suit that could bring your company to a standstill.And the liability issue is just the tip of the iceberg when it comes to insurance needs. The best way to determine what sort of independent contractor insurance you really need is to contact a reputable agent and discuss thespecifics of your business.
Disclaimer: The information provided in this article is for informational purposes only and may include generalizations or information subject to change. While every effort is made to ensure accuracy, errors or omissions may occur. This content does not constitute professional insurance advice, insurance coverage advice or an offer of insurance. For specific questions or personalized assistance, please contact one of our licensed agents by calling 888-506-2835.
