Contractor Insurance for Businesses with Employees


While a business can eliminate the dangers of losing income by selling topnotch products or services, offering special discounts, and incorporating better marketing strategies, there’s nothing much they can do — other than implement strict safety rules – to prevent their from employees suing them for being injured on the job.

Such risks are taken upon enterprises across all industries; which is why the type of liability insurance contractor companies should be availing must include extensive contractor insurance which includes worker’s compensation insurance, unemployment insurance, and state disability insurance.

The first item on the list above is focused on providing benefits to workers who’ve fallen ill or have sustained some form of injury while on the job. Not only will this program allow for the disbursement of benefits and medical care to employees, but it’ll also provide assurance that the employee does not sue his or her employer.

Unemployment insurance was specifically designed for those who recently lost their jobs. Compensation is given to jobless individuals in order to help them pay for their basic necessities while in search of new jobs. Contractors pay for this type of compensation through unemployment taxes. Rates are dependent on the percentage of money paid to employees, as well as the industry the enterprise is engaging.

While the odds of sustaining injuries and becoming temporarily disabled while on duty are at average slim, some businesses – such as the ones competing within the construction industry – subject their employees to significantly higher risks.

Workers at roofing companies are perfect examples of people filling high-risk occupations. A single slip off the roof is all that it takes for such an employee to be sidelined for months. This is where disability insurance comes in, as insurers will provide compensation throughout the duration wherein the employee is temporarily disabled.

Of course, certain businesses are likely (if not, required by state law) to need more extensive contractor insurance policies to negate the odds of being sued by customers as well. Professional malpractice, errors and negligence are some things that could easily lead to a heavy lawsuit should the customer choose to take legal action against the company.

For more complete coverage that safeguards multiple key elements which could be used by clients to file lawsuits, general liability contractor insurance policies could definitely come in handy. A policy of this nature protects the business against professional malpractices, property damage, bodily injury, libel, slander, and more.

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