Home Construction Contractors

Starting your own home construction contracting business is not just about having the right skills with your hands and experience under your belt. Like any other business, it requires patience and a calculated approach in order to see good results. There are some things that you have to plan in advance, especially on the legal side, and it’s a terrible idea to postpone them until the last minute. This is particularly true when it comes to insurance. Messing something up can happen to anyone, and it’s part of human nature. But if you don’t keep yourself covered against these mishaps, that’s all on you.

1. Builders Risk

Builders risk insurance is important if you don’t want any natural disasters or similar conditions to interfere with your projects in unexpected ways. You can’t really do much to prevent these incidents from happening, which is exactly why builders risk insurance is one of the first things you should look into. It can cover a surprising range of objects that are part of the construction project, including your foundations, materials and supplies, decorative elements, and in some specialized cases, your own tools as well. Although the last type would likely require a more advanced insurance policy. 

2. Public Liability

The second most important type of insurance policy you should explore is public liability. As the name implies, this protects you against any damage you might cause to other people’s property, be it your client or someone else entirely. This is not the same as general liability insurance for business operations, and it’s something you will need to get separately to ensure that you’re fully covered. Don’t make the mistake of thinking that you’ll just play it safe and avoid making any mistakes whatsoever. It never works out that way. 

3. Employer’s Liability

If you’re working on your own and don’t employ anyone underneath you, this one will be irrelevant. But if you have even one employee, then it’s an important policy to consider as well. It won’t cost you that much on top of all your other types of insurance in most cases, and it will keep you covered against a wide range of problems related to the work done by your employees too. It’s something you shouldn’t even think about, and you’ll hardly find a responsible contractor worth their salt ignoring this option. Although, admittedly, some do try and skirt the rules by playing with special contractor arrangements and so on. However, this is not only a bad idea for you and your employees, but it will also draw negative attention to your business as well.

As your business expands, new types of insurance policies may come into the picture as well, and it’s important for you to pay attention to this market and what it has to offer. Sometimes, you’ll discover that you can relieve yourself of a huge amount of responsibility by just picking a more appropriate insurance policy that’s only become popular on the market recently. But if you’re not paying attention to that market, there’s no way to find that out in the first place.

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