Managing a Springfield business as a contractor can be very rewarding, as you work with homeowners to design and build the home of their dreams. Your advice and craftsmanship helps their dream home become a reality. It's important, however, to manage your business risks. Contractor insurance can help insure your business against damage to property or an injury received on the job. Here are five great reasons to consider contractor's insurance:
5 Things to Know About Springfield Contractor Insurance
1. State and Local Regulations
A contractor needs this coverage to start any project. Nearly all states require contractors to obtain contractor license bonds, which are a form of insurance. The bonds are needed to ensure that the contractor will operate in compliance with local statutes and laws. Essentially, a bond protects the homeowner in case a contractor does not perform their work correctly.
2. Architect or Engineering Errors
Contractors work closely with architects and engineers. If a family in Springfield wants to build an addition, for example, an architect will create a design. An engineer will make sure that the bedroom addition is structurally sound. As a contractor, you don't want to build an addition and have the roof cave in. Contractor insurance protects against errors made by architects and engineers.
3. Contractor Insurance for Springfield Home Inspections
Every building job requires an inspection. Contractors buy insurance for any property damage or bodily harm that may occur during an inspection. For example, the inspector may fall off of a ladder and break his leg. Instead of an injury, there might be property damage, such as an inspector stepping on a water pipe and causing damage. A solid policy can cover that damage.
4. Subcontractor Work
Subcontractors perform the plumbing, carpentry, and electrical work on projects, reporting directly to the contractor. The contractor needs insurance in place for these workers. If a carpenter puts a hammer through a new wall by accident, you want to have coverage to make the repair.
5. Damage to Existing Home
If you're working on an addition, you need insurance for any damage you may cause in the existing property. If an electrician is walking through the house and drops a tool on a piece of artwork, for example, your Springfield contractor insurance protection will cover that damage.
Your career as a contractor can be interesting and fun, as well as lucrative. You can build a home that a family can enjoy for many years. To protect yourself and your business, it's imperative that you look into purchasing coverage. You can grow your business and control risks with this form of insurance.