Some types of jobs are more dangerous than others. The nature of the work done your average marine construction professional is by nature hazardous. The possible risks of lawsuits because of an error, omission, or poor design are much high than in most work environments. This is why it is important to carry professional liability insurance, which is also known as errors and omissions insurance.
Many Project Require It
If you are bidding on a job, most projects (if not all) require you to include your contractor’s insurance as a part of the bid process. If it isn’t a part of the bid, proof of insurance is definitely needed before you start work. So it makes sense just have it on hand to ensure that you are presented as a credible contractor with all of the proper insurance paperwork.
Get Industry Specific Insurance
General liability insurance is vague in regards to the services it covers for contractors but leaves the door open for instances to not be covered. This loophole allows insurance companies to add exclusions that suit their own needs, rather than the needs of the contractor. Contractor’s insurance is specified for the industry and covers services the contractor provides that are not specifically spelled out in general liability policies.
Protection For Work You Contract Out
Often contractors will hire third party workers such as engineers or subcontractors. Although these workers must have their own insurance, the coverage it provides is not sufficient for a contractor. Contractor’s insurance will protect the contractor from any liability that occurs from third-party mistakes, errors, or omissions.
Bodily injury and property damage
Contractors need to protect themselves and their business from the serious injury or property damage that may occur on a job site. Job sites are full of potentially hazardous equipment. Contractor’s insurance can’t guarantee people and property will not get hurt or damaged, but it will protect the contractor from any costs associated with these serious accidents.
There is so much potential for accidents on a construction site that it is foolish for a contractor to not have the right insurance coverage. Carrying a contractor’s insurance policy can be the difference between being able to keep a business open and having to shutter the doors.