Most of the time, the work general contractors do goes smoothly and results in a delighted customer. However, there are also times when disagreements, arguments, or misunderstandings arise.
Under such circumstances, it can sometimes lead to a lawsuit or an unresolved situation that can drag on for months or years, costing a contractor thousands of dollars and significant stress. But it doesn’t have to be that way.
Contractor liability insurance can help in such circumstances. Let’s go over how:
Download Our FREE Insurance Whitepaper
Learn everything you need to protect your small business.
Your email address will be used by Zensurance to provide latest news, offers and tips. You can unsubscribe at any time.
9 Ways Contractor Insurance Helps Resolve Legal Disputes
Here are nine ways a contractor insurance policy can help deal with a dispute you have with a customer or business partner:
1. Notify Your Insurance Broker
The first step is promptly notifying your Zensurance broker about the legal dispute. That may involve filing a claim and providing your broker with all relevant details about it. For example, it may be possible for us to help a contractor avoid being sued if they make a mistake as we did in this instance.
2. Cooperate with Your Insurance Provider’s Investigation
Fully cooperate with your insurance provider’s investigation. After filing a claim through Zensurance, we will assist you by ensuring the claim is acknowledged and addressed immediately by your insurance provider. It’s an adjuster appointed by your insurance provider that investigates a claim and makes a decision on how to proceed. As part of that investigation, the adjuster may ask you directly for additional information, documents or to participate in an interview with them.
3. Review Your Policy
Your Zensurance broker can help thoroughly review your liability insurance policy to understand the coverage limits, exclusions, and any specific requirements that must be met to receive benefits, if applicable.
4. Engage Legal Counsel
Depending on the complexity and severity of the dispute, it may be advisable to consult an experienced attorney for advice. An attorney knowledgeable in construction law can provide guidance and represent your interests.
5. Document and Keep Accurate Records of the Claim
Maintain thorough documentation of the dispute, including contracts, correspondence, photographs, invoices, and any other relevant records. Documentation will help support your case.
6. Attempt Mediation or Negotiation
In many cases, it may be in your best interest to attempt mediation or negotiation with the parties involved in the dispute. It can help resolve the issue without resorting to lengthy and costly litigation. If those negotiations are unsuccessful, you may need to pursue legal action. Consult your attorney to determine the best course of action and ensure that you’re meeting all the necessary legal requirements.
7. Keep Your Insurance Broker Informed
Throughout the legal process, it’s important to keep your Zensurance broker informed of any developments, including settlement offers, court dates, or other significant events related to the dispute.
8. Settlements or Judgments
If a settlement is reached or a judgment is awarded in your favour, your insurance provider may give you the funds to cover your liabilities up to the policy’s limits.
9. Ensure You Have Legal Expense Insurance
Adding legal expense insurance to your contractor insurance policy before facing a legal dispute or litigation can help contain your legal bills. For example, legal expense insurance covers employee-related disputes or lawsuits, contract disputes, and debt recovery involving a supplier or customer. This type of insurance can connect you to an experienced lawyer 24/7.
Get the Protection Your Contractor Business Needs Now
Whether renewing an insurance policy or getting a contractor insurance policy for the first time, Zensurance specializes in helping Canadian contractors get low-cost coverage quickly. Furthermore, it’s worthwhile to get year-round coverage even if the bulk of your work is seasonal. After all, accidents, fires, or theft can happen at any time.
Fill out our online application for a free quote. Our knowledgeable brokers will do the shopping for you to find the most coverage available at the lowest price from one of more than 50 insurance providers in our partner network, customize the policy to suit your unique requirements, and ensure you receive a certificate of insurance fast.
Recent Posts
Tornado Season 2024: What Small Businesses Need to Know
It's estimated that 86 tornadoes touched down in Canada in 2023. See our tips for how business property owners can prepare and minimize damage to their properties from a tornado and other severe windstorms.
5 Reasons Why You Need a Builder’s Risk Insurance Policy
Also known as course of construction insurance, a builder’s risk policy is a form of property insurance that protects contractors from the beginning to the end of their projects.
Is Your Landscaping and Lawn Care Business Protected?
Landscaping and lawn care businesses are gearing up for a busy season managing the health of their customers’ properties. See our tips for ensuring this season is a safe and problem-free one.