We all know the importance of business insurance. Many people, however, seem to think that those engaged in contractual businesses do not need to insure their services or products. After all, what can go wrong in six months?
Many things can go wrong with a business, whether you are in a one-day contract or a two-year contract. For example, you can damage your client’s property or injure somebody in the premises. When this happens, you need general liability insurance to provide the necessary redress. These types of claims, which are covered under Premises/Operations and Products/Completed Operations of the policy, can cripple your business in the case you were not insured.
Unless you are the only employee in your contractual firm, which is highly unlikely, you will need workers compensation insurance. Contractors’ employees too need medical and even disability insurance because anything can happen to them while on the job. If you think that you can hide behind the protection of an agency contract, brief research will prove to you that this is not always the case.
As a contractor, you obviously have the desire to get regular contracts and expand your business. Did you know that having insurance will help you accomplish that? The vast majority of clients will require you to be covered, and most of them will ask for proof upfront. This means you could lose many clients if you are not sufficiently covered.
Being a contractor is not all roses; it has its thorns too. As the owner of a contractual business, you are solely responsible for all the liabilities leveled against the company. When clients do not pay on time, or they completely abscond from paying, it is on you to deal with the ramifications. You need to protect yourself against these and other claims that may arise against you.
Many contractual businesses rely on social media marketing, client reviews, consumer reports and even word of mouth marketing. You might even breach your contract unintentionally, but your clients will still expect regret. When reviews are written about your goods or services, you do not want it to be said that you have ongoing cases of claims made against you. That would definitely ruin your reputation with potential clients. Yet, this is exactly what could happen if you are not insured.
As the owner or manager of a contractual firm, you will be trying to get as many contracts as you can manage. The more contracts you get, the higher the chances of being hit with a suit, or experiencing some sort of problem with your contracts. You never know when might happen, so you should always be ready to deal with different kinds of problems. The best way to be prepared is to sign up for a relevant insurance policy. Visit the Regency Insurance Agency website or call toll free at 800-350-6876 to discuss your Mentor OH business Insurance needs.