Does your Contractor’s Business have the Right Insurance?
Contractors’ businesses can offer a degree of flexibility in your work practice that many people who chose to own their own businesses seek. However, you do have different risks to many business owners, as you are mobile, working in other people’s houses and businesses, and you can be open to a range of exposure that can be challenging to combat, which is why you need to be extra careful to ensure that your insurance is properly structured.
One of your biggest priorities should be your vehicle. This operates like a mobile workshop for many contractors – you keep your tools in it, some machinery and other equipment, components and parts, and any other gear that you might need for a job. You need to have a good commercial vehicle policy so you have financial backup if anything happens to the van. Your tools and machinery may need separate coverage, and you should look into this carefully – you won’t be able to work without your gear.
Liability is another tricky area for contractors. Remember, you are working on other people’s sites. You need to have your own liability coverage, and you need to be sure that you maintain work practices that limit the risk of you creating a liability issue while you’re on site. You also need to be clear with your client about areas of responsibility as they could create risks if their site has hidden dangers. Your insurance is a vital part of your business set up and you need to get it right so you have adequate financial back up.