Risks of Being Underinsured As A Contractor

The amount of risk uninsured or underinsured contractors operate with is significantly higher than their covered counterparts. Just because you believe your business is indestructible, doesn’t mean it is. Never underestimate your insurance requirements and always leave it to a professional who can create a customized risk management plan for you.

Liability
Most states require contractors to be insured in the event of injury or property damage. In most cases, the cost for insurance is much less than the cost to legally or physically repair any possible damage done while you are working. You might even find yourself liable for a job you completed, but does not meet the standards of your client. Being underinsured opens you up to unnecessary risk which can easily be offset by General Liability Insurance.

Bankruptcy
If you run a small business or sole proprietorship, liability for business-related incidents falls on your shoulders. Without a protection plan in place, not only is the future of your business at risk, but also your personal assets. There is no reason to operate with limited insurance, since there are many policies available to protect you from risk and financial burden.

Reputation
During the vetting process, clients will often ask for adequate credentials and insurance before signing a contract. Being uninsured reduces your pool of potential customers and can harm your reputation if the word gets out. Just one bad experience with a client can change how your business performs within the community. As a risk and insurance company, we know just how exposed your general contracting business is to financial damage. We work extremely hard to identify all of the areas where your contracting firm could be exposed to risk, then put together a comprehensive plan to mitigate it. Contact TCE today and we will get right to work making sure that your company’s exposure is reduced.