Cheap Business Insurance for Contractors - Your Guide to Liability Insurance for SMBs

October 24, 2022 / By: Stampede Insurance Team
Cheap Business Insurance for Contractors - Your Guide to Liability Insurance for SMBs

Small and midsize business owners need insurance coverage too, but it can be tough to know where to start. Our company offers cheap contractors insurance of all kinds. 

We pride ourselves on helping our clients find solutions that protect them from litigation and other serious concerns. Liability insurance is one of the best ways to stay safe as a business owner.

Defining Liability Insurance

Liability insurance is designed to protect companies if they are found responsible for an accident or injury. However, even independent contractors can be held responsible for damages in court. 

Without insurance protection, being found liable can bankrupt a contractor or cause lasting financial damage. You would need to defend yourself in court—racking up legal fees and spending countless hours involved in legal battles.

Clients look for companies that have adequate insurance because this means they can make claims and reimburse if something goes wrong. An insurance policy can help you build trust with a client and having an insurance certificate shows customers that you are serious about your work and that you can be trusted.

Liability insurance protects your personal finances as well as your business. If you have any workers, you will also be protecting them by investing in insurance. Liability coverage is the logical choice, and it benefits all parties involved. 

Why Do You Need Liability Insurance?

Every company that interacts with the public needs liability insurance. It is in your own best interest to have contractor insurance, which is also sought after by your clients. Some states even legally require construction workers to have coverage.

In the contracting business, you face risks daily. There is a definite threat of client injury or property damage. Lawsuits can be devastating, but insurance policies offer protection and allow your clients to get reimbursement for the costs.

Insurance companies thoroughly explore claims before paying them, so you can be sure that scammers won't be able to take advantage of your company. This is a much better alternative to having to go to court and potentially pay damages out of pocket. 

If you do need to go to court, your liability policy may include defense coverage, which includes legal fees, settlements, and all related costs. 

What Types of Liability Insurance are Available?

There are many types of liability insurance available to cover the many situations that companies deal with.

General Liability

General liability is a great place for businesses to start. It covers all the most common issues you will run into, like bodily harm, property damage, and even reputational harm. If your company is somehow found responsible for someone's injuries, your insurance plan will provide compensation for their medical bills and any other needs.

Property damage includes issues like a scraped wall or broken tiles as a result of your work. Reputational harm includes libel and slander. 

Personal Liability

Professional liability is another type of insurance that covers errors and omissions from your business.  If an angry client claims that you didn't do your job correctly, this type of insurance will protect you. It can cover legal fees or pay for damages. 

Professional Liability

Professional liability includes negligence claims, misrepresentation, and violation of good faith. If you provide services to customers, this type of coverage is essential. 

Employer Liability

Employer liability covers any illness or injuries of employees. Worker's compensation insurance ensures that your employees will have their medical bills covered. Since construction work involves a lot of physical labor, it is a must-have for most contractors. 

Workers Compensation

Workers compensation can also cover wages lost due to an inability to work and provide disability benefits.

There are many types of liability insurance designed to protect companies in a variety of situations. Finding the right amount of coverage will protect your company from litigation. 

Choosing an Insurance Provider

Businesses of every size need insurance. It's one of the best ways to prove that you're serious and dedicated to your craft. It also shows clients that you are reliable and have coverage in place in case of an accident. Many customers even require it before they work with a contractor. To speak with an insurance agent who will help you find the best affordable contractors insurance rates for your needs, contact us at 888-306-7887 at Stampede Insurance Services today!

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