10th Jun 2010
What Is Contractor’s Liability Insurance
Every contractor’s job comes with a reasonable amount of risk irrespective of the kind of job they are involved in. The liabilities incurred by a contractor due to any damage of manufactured goods or the occurrence of any accident during the course of work could be covered by an insurance called the Contractors liability insurance. It protects the contractor against legal claims that can occur due to personal injury, damage to any kind of property or even negligence.
Contractor liability insurance works like any other insurance. The contractor has to make a down payment to buy the insurance followed by regular installments called the insurance premiums. This insurance can be bought by the individual or the company he or she is working for, depending on the terms of employment. Many companies are offering this insurance today and one must look at the quotes offered by the different companies along with their payment policies, terms and conditions and the amount covered, before deciding to buy one. This will help them to get the best value for money.
The sub contractors are also supposed to have liability insurance, which has to be ensured by the contractor. The subcontractor is an independent worker who works for the contractor. Though the subcontractor is not an employee, it is still the contractor’s duty to check the liability insurance of the subcontractor. When the contractor ensures that all subcontractors are insured, his premium amounts will go down. Also, the possibility of a risk goes down for the contractor.
The laws in most states require that the contractor carry general liability insurance. It covers property damage and losses that occur due to bodily injury. However, it does not cover losses that occur due to poor quality of work by the contractor. In short, every contractor should carry both kinds of insurance to prevent legal claims.
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