Insurance is no doubt a great idea when it comes to insulating yourself against risks and other unpleasant contingencies. If you contact your local insurance agent, you will there are many options that businesses can take advantage of, one of which is contractors insurance. This not only covers contractors or service providers against risks but also protects their clients as well.


Accidents and mistakes can occur in the course of a business’s operation. As a matter of fact, they do. These mistakes and accidents, which may arise at any time without warning, can prove highly costly for a contractor without proper and adequate insurance. For example, a construction contractor may accidentally cause damage to a property while working on it. Alternatively, the tools used by a contractor may cause bodily injury to someone. These scenarios could prove very costly without insurance if things are allowed to degenerate into lawsuits.

 Guarding Against Liability Insurance

In the light of the preceding fact, it is therefore strongly advised that contractors insurance be put in place before commencing a project. This sort of insurance will help ensure that both the service provider and clients are protected against risks associated with the contract between them. The insurance will provide financial protection for the two parties in the event of property damage or bodily injury cropping up while the project is in progress. The coverage will also help avert possible misunderstandings that could result between a client and contractor if and when a mistake or accident occurs.

Contractors Insurance

Precautions for Hiring a Contractor

If your company is hiring a contractor, you will do well to first be very sure, through verification, that such a person or corporate body has the right insurance for the job. As we pointed out earlier, accidents can and do happen. Being convinced that the contractor you are working with is adequately insured could possibly save you millions in lawsuit costs in the event of an accident occurring.

A contractor prequalification may also be needed to ensure you are dealing with the right contractor. This will help you determine how abiding the contractor is to established standards and guidelines.

Contractors insurance is obviously quite important for both the clients and service providers. It reduces project-induced anxiety. As a contractor, it is recommended to speak to an insurance professional for advice before taking up a policy. Contact us today for a contractor insurance quote!

Written by: John Brown
John has more than 25 years of experience in the insurance industry. He grew from a star insurance producer to owning one of the largest agencies in the country; he's a reference regarding contractor's insurance, commercial insurance, and builders' risk insurance.