Contractors are individuals who perform services on a contract basis. They may be self-employed or work for a company. They include handymen, carpenters, and construction workers who work on one-time projects. Their clients include people who own homes, businesses and all types of properties.
Their work is laborious and dangerous at times. Insurance helps to ensure that they are covered for workplace accidents and injuries. Their businesses are protected from any loss of income that occurs when one or more contractors cannot work. An insured individual or business owner does not rake up debts from not being able to complete projects as usual.
Types of Coverage
Basic work-related insurance starts with liability. Obtain this basic level of protection before you start working. Prevent the business from being sued if an accident or injury occurs on your property.
One type of business insurance is available to workers who drive specialized trucks or vans. The policy covers your work vehicle along with certain tools and materials that you carry. Each policy varies based on the types of equipment covered.
Policyholders can bundle more than one type of business insurance. They can bundle policies for both general liability and commercial property coverage. Many people claim that bundling is cheaper than buying separate policies.
Another form of insurance covers workers who become sick or injured on the job. Since they are mainly involved in physically strenuous work, this coverage is just as important as the liability. Without it, employees can easily sue their employers for thousands or millions of dollars in damages.
How it Works
Getting this insurance is important for workers who are not covered by their employers. Having basic coverage is required for certain professionals. If they do poor jobs, they are fully liable for all costs of repairs or replacements. If they get injured, they are responsible for the medical bills, lost wages and alternative transportation fees.
Many contracting professionals are legally required to be insured. The first task is to know the total value of their business. They should insure themselves for the monetary amounts that their labor, tools, and equipment are worth.