If you’re wondering about contractor liability insurance, have we got a treat for you! (That’s a statement, not a question. We do.) While your business can be your best financial friend, it can also become your worst enemy if you are not careful. The world of insurance deals with risk and with carefulness, and perhaps nowhere is this more important than with your business. If an unforeseen natural disaster, lawsuit or theft comes along, you might be in way over your head with costs that insurance might have easily covered if you had it. Don’t get caught out in the rain when it comes to protecting your company’s future.
To help you understand the wonderful realm of contractor’s liability insurance, here are a few key insurance terms and their definitions:
General liability – This type of coverage will protect you from most of the bad things that could happen at any time on your business property or in its transactions. This particularly includes accidents that clients or employees might have on the property.- Product coverage – You especially need this kind of protection if you manufacture, maintain or repair many products or machines in your business. It covers you if any products are damaged, or even if they cause injury or damage to anyone or anything after leaving your property. The insurer will pay anyone who is injured for the costs of the damages incurred.
- Special equipment coverage – With this cover, large machines and equipment like electric generators, table saws, and printing presses will be protected.
- Electronic data processing – This coverage protects electronic hardware if it breaks down or if you lose important work-related data. If lightning strikes your property and somehow fries all the stored electronic information in your warehouse, or even if someone breaks in during the night and steals sensitive company information from your computer network, you may be reimbursed if you have this coverage.