Contractors and those in the construction business require construction insurance, as so many things can go wrong. In many cases, the contractor may not be at fault for the incident, but may nonetheless have to defend themselves in a court of law should there be no other way to resolve the issue.
When being considered for a project it’s important to realize that many competitors have been in business for a while and have built a reputation, due to their experience, and have the results to back up their claims. Having the necessary special certifications or trade skills can help give one contractor a leg up, and stellar references can be the thing that secures the project.
Selecting the right customer
Realize that many a contractor has run into that difficult client who is impossible to please. It’s important to know as much about the client as possible, for instance, have others done work and been subjected to difficulties, or even lawsuits? This can be more trouble than it is worth, so choosing whom to perform work for should always outweigh whatever monetary benefits may be derived from undertaking certain projects. Learn everything possible about the client in order to determine if there are red flags that suggest this is a job to pass on.
Covered claims versus non-covered claims
Many people might prefer to have the opportunity to realize the dream of having their “perfect” home, because they figure that everything is new and they won’t have to worry about maintenance or repairs for quite some time.Building a new home is exciting for individuals who can’t find exactly what they’re looking for on the pre-owned market, but the potential for problems, including costly delays and other issues (such as the inability to secure materials at the estimated price), can turn the entire process into a nightmare.
Also, problems may arise long after the job has been completed. For example, if the new roof that was installed leaks due to poor installation, and it rains, and that leak creates damage to furniture, electronic equipment or rugs, due to the leaky roof, this could easily be considered grounds for a lawsuit due to the contractor’s negligence. This is an example of where construction insurance will protect the contractor from paying a costly settlement out-of-pocket.