If you’re a contractor, you need liability insurance. If you don’t have it, make sure your boss does and that it covers you. For one, liability insurance will give you peace of mind that if something bad happens, you won’t be at fault and you will be covered. Second, you are likely to be hired by more people. Many clients don’t want to take on a contractor who doesn’t carry insurance as too many problems could arise.
Liability insurance helps protect business owners, contractors, and homeowners from liability related to on-job accidents, products, and other forms of liability like contractual liability.
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. If you don’t carry this insurance, you may not be hired for many jobs. With this insurance, a homeowner or business owner feels protected, and can see that you took measures to protect yourself and them.
You can often bid for work without this insurance but are unable to work without it. Contractor’s liability insurance doesn’t protect contractors again poor workmanship or construction defects.
This type of insurance is important because claims against contractors happen and can be very expensive. You don’t want to pay this out of pocket!
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’re working in, you can find out if insurance is required.
What liability insurance should you purchase? Research different insurance companies and ask peer contractors what companies they’re using and why. Look at these company’s ratings.
Ask for quotes to compare. For general and building contractors, these are the minimum amounts for 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 needs to be shown before you can start a job or needs to be at the job site. Ask the company for the original certificate and not a copy.
Protecting yourself as a contractor is important – you will save money and stress less. Even though it’s not required by the state, you are better of being 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, our Florida contractor licensing team can help make the process easier and faster.
Please call us at 239-777-1028 to get help from us right away or click our Florida contractor license page to learn more.