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construction worker leaning on truckContractor liability insurance is important for any contractor. That's because contractors usually are required to be otherwise fully accountable for accidents that occur in the line of business.


In the construction industry, it's even more important to have contractor insurance because of the nature of the business. Of course, you want to be indemnified.

Here's why your construction business needs liability insurance no matter what size it is:


Offers Protection

Contract liability insurance offers protection for business owners who don't want to be stuck footing the bill in the event of an accident or miscalculation. More importantly, many construction contractors can't afford to pay the expense of a catastrophe, and liability insurance ensures assets are protected on a job site, or wherever an accident occurs. When it comes to construction, it's not a matter of if there will be an accident, but rather when. After all, one in ten construction workers is injured on the job each year. This is relevant because accidents are a cause of damage to customer property. Even teams with the best OSHA training can run into issues, and it's important that if they do they are covered so business can continue as usual.

Helps You Win Bids

In the construction business, it's important that contractors position themselves from a competitive standpoint, also.

That's because construction bids often accompany Requests for Information or RFI.

RFIs are documents that must be turned in to the potential client by the contractor and contain an assortment of competitive information.

Common RFI questions regarding insurance and safety standards include:

  • What are your safety procedures?

  • How do you train your employees to ensure no damage will come to company property?

  • How are employees trained to complete the job properly?

  • How ready is your business to continue forward with a project in the face of an emergency or accident?

  • What are your insurance limits?

In addition to asking about your current insurance, many clients require construction contractors to meet specific liability insurance limits. Winning the bid means proving you are willing to meet those limits or risk being disqualified.

For contractors, having liability insurance is essential for gaining new clients and winning business.

Required By Law

Construction is one of the business sectors that most often has to capitulate legal constraints around having liability insurance.

In the case of construction contractors, it's not a matter of preference but a matter of law.

State and national laws may require different things from contractors, so it's important that each be savvy of laws within their state.

The reason is that liability insurance covers more than just the damage of customer property on the job due to a safety issue or accident.

It also covers things like defects in the construction of a building, improper wiring or pipe systems, and other infrastructure issues.

Contractor Insurance: A Safe Bet

When it comes to protecting against liabilities, winning bids and following the law of the land, having contractor insurance is a no-brainer.

All independent contractors benefit from contractor liability insurance. But in construction, it's requisite to doing business.

Don't lose out because you don't have the right insurance limits for your industry.

Get with the pros at Alliance Insurance to ensure you're insurance is up to industry standards, today.

Posted 4:39 AM

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7910 Ralston Rd., Ste 7
Arvada, CO 80002

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