If you work in the construction industry, you will know that it is a sector experiencing long-term and sustained growth. In America, revenue from the construction industry has grown at an annualized rate of 2.7% from 2016 to 2021, which is predicted to continue. Across the developed world, there is an increasing demand for high-quality housing, which has helped to fuel the construction industry. If you are the owner of a construction firm, you may be aware of the benefits of contractor liability insurance.
This form of insurance offers multiple layers of protection for construction companies and should be seen as a vital part of any building firm’s business assurance framework. In this article, three of the key reasons for having comprehensive contractor liability insurance will be explained in detail.
1Protection against accidents
Accidents on construction sites can and do happen. A sobering statistic is that one in ten construction workers experience some form of injury while at work every year. These can range from simple slips, trips, or falls with minor injuries to serious or life-threatening injuries sustained after a fall from height or as the result of electrocution. The simple fact is that building sites can be an inherently dangerous places to work. While employers will endeavor to minimize all potential risks on a site and ensure that staff wear suitable safety apparel, accidents will eventually happen.
Contractor liability insurance is, therefore, an essential requirement for any construction firm as it can cover the costs incurred because of accidents in the workplace. These can relate to the cost of medical bills from injured employees and compensating for damage to property in the event of accidents that have resulted in this. All construction firms should see contractor liability insurance as a vital part of their business. If it is not present, it is imperative to seek contractor liability insurance quotes from KBD or other such companies who are specialists in this area of insurance.
2Win more construction bids
An integral part of generating continuous revenue streams from your construction business is by successfully securing construction bids. The construction industry is a characteristically competitive marketplace. Larger construction projects can net a firm hundreds of thousands of dollars and are likely to have many firms competing to secure the contract. One way to give your business the edge in this negotiation stage is to prove that you have comprehensive contractor liability insurance. Demonstrating this both illustrates your commitment to safety and provides assurance to the company issuing the contract that your firm is professional.
3Protection as a sole proprietor
Many construction firms are owned by a single person who operates the business as a sole proprietor. This is commonplace for smaller construction companies or those that have recently been formed. This is a suitable way of running a smaller construction firm, but it also raises additional liabilities against the owner. A sole proprietor will be liable for all costs occurring because of an accident or legal claim. This can be devastating for the owner and can potentially result in bankruptcy and business closure after a significant legal event. Comprehensive contractor liability insurance gives the owner peace of mind that costs will be covered due to adverse incidents, and the owner’s finances will be protected.