When it comes to obtaining insurance for a contractor, there is a lot of misinformation to navigate. Should the unthinkable happen – theft, fire, injury or other unforeseen disaster – not making the right insurance decisions can cripple or shut down a contracting business for good. Contractors are often also small business owners, and may employ a handful of workers in addition to working with subcontractors. They might work from home or remotely when not on a job site, but even with a bare-bones operation there is still be a lot to lose in the event a lawsuit is brought against their business.
Insurance Risks That Contractors Face
One of the most prevalent risks in the construction industry is bodily injury, which can often be fatal. Falls, struck by object, electrocutions and caught-in/between accidents are four of the most common preventable bodily injury risks. However, contractors also face a number of other insurance risks including but not limited to:
- Property damage.
- Repetitive injuries suffered by employees.
- Loss of equipment and tools due to theft, damage or neglect.
- Destruction of structures as they are being built.
- Claims of negligence from clients, partners or subcontractors.
The Professional Liability Risk
Traditionally, contractors come into a project after an architect or engineer has provided their design services. However, more often than not, contractors are being drawn into the earliest stages of project development offering more insight and experience into the design portion as consultants before taking on the building portion of the project. Consultative advice on constructability, design, sequencing and scheduling is considered “professional services” and thus creates professional liability exposures that often fall outside the scope of coverage found in a commercial general liability policy.
No matter how skilled and experienced a contractor is, mistakes can still happen. Even contractors who follow every possible rule or regulation can find themselves defending themselves against a lawsuit. Regardless of whether or not the claims are legitimate, or the contractor is found to be not liable, defense costs alone can be a major financial strain. Contractors who obtain liability Insurance policies can rely on their coverage to pay to defend against an errors and omissions lawsuit, and if necessary, pay any settlement or judgement amount that is decided upon, up to the policy limits. In today’s litigious environment, contractors need professional liability insurance to protect against costly lawsuits the can result from errors and omissions in their professional services.
Formed in 2013, AmSuisse, Inc. has quickly distinguished itself as a wholesale operation that specializes in working very closely with our agents and broker partners to develop responsive, individualized service for each client. Our unparalleled writing support, industry-specific expertise, marketing support, responsive proposals and quotes, strong customer service, and strong relationships with our carrier partners have all helped us to provide the best possible coverage for our clients. To learn more about our available coverage, contact us today at (800) 485-0229 to speak with one of our representatives.