Insurance is an important component in all kinds of contractor jobs. It might seem like finding and paying for an insurance policy adds an extra layer of difficulty and expense, but it is well worth it to help the long-term health of your business as it helps protects not only your customer, but your business.
How contractor insurance helps protect you and your customers
Independent contractor insurance is designed to help you deal with the financial repercussions of covered unexpected events that occur on the job. Each insurance plan is different, but in general just a few of the situations in which insurance can typically help are:
- An injury to yourself or one of your technicians
- Damage to a customer's property or possessions
- Financial protection against a lawsuit from an unhappy customer that is covered by your maximum amount and limitations
Even if you take pride in the quality of work you do and don't think you'll ever have a problem, you never know what could happen on your next job. One serious accident or injury could potentially put you out of business if the damage is extensive enough. In situations like these, it's better to have insurance than not.
Additionally, some state and local laws often require contractors to carry a certain level of insurance. HomeServe USA only works with contractors who meet these minimums.
Home repair companies insurance requirements of their contractors
Most home repair and home warranty companies have specific requirements for their network contractors to protect themselves, their customers, and their network contractors. At HomeServe USA we require that our network contractors carry insurance. We also review insurance levels when job volumes increase.
At HomeServe USA, we monitor our contractors to help ensure their coverage is active, adequate and in compliance with our requirements. To help protect our contractors and our homeowners HomeServe USA has a process in place where we make sure the contractor has the required insurance and that their policies are current.
Conclusion: Insurance can work for everyone
It's true that you'll need to devote some time and energy into finding insurance coverage for your contractor business. But these efforts can pay off by protecting you from a potentially serious accident that could put your business at risk, and helping you earn more by allowing you to work with home repair and warranty companies because you are “licensed and insured.”
