Anyone who works in the construction industry knows the inherent dangers of onsite tasks. It’s no surprise that accidents and injuries are common in an environment that includes power tools and heavy machinery. But apart from the obvious risk of injury, contractors also face liability risks that could result in lawsuits. Here are a few of the most common risks that contractors face, along with tips for minimizing them.
- Onsite injuries: Like we already mentioned, injuries are a big risk factor for contractors. No matter how many safety protocols your business follows, things slip through the cracks and accidents happen. To reduce this risk, enhancing safety should be an ongoing process. Regularly evaluate safety measures to determine room for improvement. On top of boosting safety, buying workers compensation insurance protects your employees should they become injured on the job.
- Waivers and contracts: It’s common to draw up a contract or waiver for clients to sign before work begins. However, many of these documents are full of loopholes and therefore, do not have the necessary legal strength to hold up in court. Your contracting business can minimize this risk by seeking the help of an attorney to strengthen these documents.
- Personal losses: If a lawsuit results in a settlement that your business must pay, things can get dicey. Once your business’ funds have been drained, the court can go after your personal assets (in some cases) to fulfill the rest of the settlement amount. Protecting your business with liability insurance is one way to prevent similar circumstances. This policy helps cover legal fees and settlements, whether your business is found at fault or not.
- Insurance gaps: Many contracting businesses go through some busy seasons and slow seasons. But just because things are a bit slow doesn’t mean you cut back on your insurance to save money. Coverage gaps can limit your protection if the need to file a claim does arise. And bouncing around on coverage options may also make insurance providers less willing to continue covering your business. If you do need to save money, talk to your independent insurance agent about coverage limits, deductibles and payment plans.
Learn more about minimizing risks. Call Insurance Agent2000 at (925) 827-0510 for more information on Concord contractors insurance.