Let’s face it, the risk you can put yourself in when you don’t hire an insured contractor is probably more than you, or anyone else, would ever wish to bear. Uninsured contractors can often lead to bad results, lots of headaches, and sometimes, a lot of money lost.
Here are 10 reasons why you should always hire an insured contractor:
- AVOID FINANCIAL RUIN — you could lose your business over a sizeable uninsured loss. If you have to pay a loss out of your own pocket and don’t have sufficient funds even your personal assets could be at risk.
- PROTECT YOUR BUSINESS ASSETS — an uninsured loss could result in seizure of assets and could ultimately put your company out of business.
- PROTECT YOUR PROPERTY — if an insured contractor destroys your property, that contractor’s insurance can cover the cost to repair and/or replace it.
- LICENSE REQUIREMENTS — to be in compliance with certain jurisdictional licensing requirements, many contractors are required to have insurance before they can perform construction operations.
- PROTECT THE PUBLIC — when you use insured contractors, you will know that investors, suppliers, customers and others may be protected against losses or damage caused by the contractor.
- PEACE OF MIND — if a laborer is injured on your premises and the insured contractor employing that injured laborer has effective Workers’ Compensation coverage, you’ll know the injured laborer will receive medical attention and/or Workers’ Compensation benefits.
- RESPONSIBILITY FOR LOSS — if an insured contractor causes the loss and you have the right risk transfer provisions in place, it may be his insurance that responds. If your insurance must respond due to a contractor’s lack of coverage, your experience reflects the loss and could result in premium increases to your policy.
- CONTINUITY OF OPERATIONS — if a loss should occur, you will want to get up and running with minimal interruption or impairment; an insured contractor’s insurance can assist in this endeavor.
- REDUCTION IN ANXIETY — loss exposures involve uncertainty; knowing the contractors you hire are insured can help reduce this uncertainty.
- IT’S THE RIGHT THING TO DO!
Have you ever been put in a position where you hired an uninsured contractor and it came back to haunt you? Let us know in the comments below!