10 Benefits of Having Construction Liability Insurance
Beyond being legally required to carry insurance, here are 10 benefits every contractor, renovation expert, handyman, or construction business owner can realize by being insured:
1. Third-Party Bodily Injury Coverage
If a client or passerby suffers an injury on a job site, their medical and rehabilitation expenses are covered by your policy.
2. Third-Party Property Damage Coverage
Insurance can cover the cost of repairing or replacing the damaged property if you accidentally damage a client’s or a neighbouring property during work.
3. Contractual Liability Coverage
Protects contractors from third-party bodily injury or property damage claims as per the contracts they sign with their clients. Contractual liability insurance covers contractors from a contract’s indemnity or ‘hold-harmless’ clause.
4. Completed Operations Coverage
Your contractor liability insurance may also cover claims arising from work you did in the past.
5. Compliance with Regulatory Requirements
Many provinces have laws which require contractors to have insurance to obtain a business license.
6. Coverage for Your Tools and Equipment
The theft of tools and equipment from construction sites is common. Insurance helps to offset that risk by replacing your tools or equipment if they’re stolen, like when it happened recently to one of our contractor clients.
7. Business Continuity and Risk Mitigation
If you need to file a claim for damage and loss, your policy ensures the continuity of your business by covering the costs and potential settlements. Insurance helps contractors proactively manage their risks by providing a safety net in case of accidents or unforeseen events.
8. Loan and Leasing Requirements
If you apply for a business loan, most financial institutions will require you to have liability insurance, or they won’t fund your business. Likewise, if you’re renting or leasing an office space, the landlord will want to see your certificate of insurance as a condition of leasing a commercial space to you.
9. Client Confidence
Your clients are more likely to have confidence in your business and work if you’re insured. That can lead to high satisfaction, which may result in them referring you to others and securing new contracts.
10. Long-Term Viability and a Competitive Edge
Insurance helps ensure your business’s financial health and stability, reputation, and long-term success by protecting you against expensive losses due to accidents or unforeseen risks. Insurance also gives you a competitive edge in signing new clients over those who do not, as clients will often only hire insured professionals.
How to Get the Construction Insurance You Need Now
Construction and renovation work is demanding and tough. Getting the comprehensive construction liability insurance policy you need shouldn’t be. Zensurance can tackle that project for you.
Fill out our online application for a free quote and let our experienced brokers get the low-cost policy you need, advise you on your options, and customize the policy to suit your business.