Getting Liability Insurance as a Contractor

liability insuranceContractors should get liability insurance. Better to be safe than sorry, right? This coverage helps protect business owners, contractors, and homeowners from liability related to on-job accidents, products, and other forms of liability like contractual liability. Worker’s compensation cannot protect people from liability, but this insurance can.

As a contractor, it is in your best interest to purchase contractor liability insurance. This insurance protects the contractor, the business, or the assets of the business when it’s being sued. Many jobs will require you to have this insurance in order to work. You have a better chance of being hired by a homeowner or a business owner if they feel like they are protected, and saw that you took measures to protect yourself and them.  You can often bid for work without this insurance, but are unable to actually work without it.  As a reminder, contractor’s liability insurance doesn’t protect contractors again poor workmanship or construction defects.

This insurance is important because claims against contractors happen and can be very expensive.  General contractor liability insurance isn’t required by Florida, but many counties do require it. In Florida, covered claims can include bodily injury, property damage, negligence, personal injury, general damages, compensatory damages, and damage from slander or false advertising. In Florida, most companies consider this insurance essential. By contacting the county that you plan to work in, you can find out if insurance is required.

Shop around for the best liability insurance for you. Research different insurance companies and ask fellow contractors what companies they’re using and why. Make sure to look at these company’s ratings. Also, you’re researching to get the best quotes you can too. For general and building contractors these are the minimum amounts for general liability insurance are around: $300,000 bodily injury and $50,000 property damage. Make sure you receive proof of insurance from whichever insurance company you choose to go through. This certificate of insurance usually need to be shown before you can start a job, or needs to be at the job site. Also, make sure you receive the original certificate and not a copy.

Protecting yourself as a contractor is important – it not only saves you money, but it gives you peace of mind. Even though it’s not required by the state, it is in your best insurance to get yourself insured.

If you have questions about general liability insurance, looking to apply or renew your Florida contractor’s license or need help forming or running your business, the team here can help make the process easier and faster for you. Please call us at 239-777-1028 to get help from us right away.

 

 

 

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