Public liability insurance for subcontractors is vital in whatever type of contracting business you run as a contractor. When you meet your customers regularly, either on your premises or on their own, this means that you may face claims resulting from property damages or injury.
If you don’t have liability insurance for subcontractors in place, you and your business may face financial difficulties meeting such a claim.
It is, therefore, important to be fully protected by your insurance coverage in case something goes wrong in whichever contracting business you run, whether as a construction contractor, electrical contractor, flooring contractor, plumbing contractor or cleaning contractor.
Public liability insurance is also known as the contractor’s liability insurance. This cover protects you in case a customer, visitor or a supplier is injured whilst on your premises or if your activities have caused the damage to their property. When compensation claims for such instances are raised against you, limited insurance covers all the costs involved.
Many clients expect you to have the contractor’s public insurance in addition to professional indemnity insurance as a condition before they hire you for a contract or a job.
Depending on the type of contracts you specialise in, financial risks, legal responsibilities and obligations will always be there. To have complete peace of mind, however, you will need insurance for subcontractors and professional indemnity.
For example, a flooring contractor might fit substandard flooring without his consent creating disruption to the business of the client when refitted. A good scenario is when a plumbing contractor makes an error on the installation resulting in water leakage which damages the clients’ premise.
By having liability insurance that covers things that could go wrong for you and professional indemnity insurance, you will have no problems settling such claims.
For indemnity insurance for contractors, it is also good to know that it covers you from claims your customer might make if for example you lost their data, documents or you unknowingly infringed their intellectual property. The best insurance coverage is one that protects you fully for any related medical costs or legal fees.
There are many kinds of reasons why people chose to become independent contractors. Some like the idea of setting their own hours and being their own boss, others like working with different clients and in different locations other than being centralised in one location. Whichever your reason or the size of your business, having public liability insurance for subcontractors is important.
Other than worrying about the cost of things going on, having the right contractor’s professional insurance with you creates time to put more concentration into your business. Insurance for contractors is meant to be a backup in case things don’t unfold as you had planned.
This, therefore, means that you should not neglect to have safety measures in place and good health. To gain more insight into how important the contractor’s public liability and other types of insurance for contractors are, you should also consider keeping in touch with other people in your field.