How to Avoid Common Contractors Insurance Claims

As a contractor, you operate in one of the most dangerous industries in the United States—construction—and also often deliver complicated services on strict timelines. Even abbreviated delays and minor accidents can lead to an insurance claim. While your coverage largely exists to render aid in these situations, avoiding having to file a claim in the first place can help keep your rates low. Understanding common claims in your industry is essential.

4 Frequent Claims

At Luevanos Insurance Agency, our knowledgeable staff can offer guidance regarding contractors coverage, including common claims. By understanding these frequent situations, you can better position yourself to avoid them. Consider the following:

1. Property damage—As a contractor, you may frequently work on other parties’ property, opening the possibility of claims against your general liability insurance. Even slight slips or miscalculations can inflict significant damage. Make sure you and your employees inspect the area carefully and use covers and barriers to protect clients’ property.
2. Bodily injuries—Your general liability insurance can also help manage claims that you’re to blame for third-party physical harm, but ample precautions may limit such situations. Secure all equipment and materials, especially when working at height, display prominent signage warning visitors of danger, and erect stout barriers to keep passersby at a distance.
3. Inadequate work—If clients allege that you’ve provided substandard services in violation of your contractual obligations, such as missing deadlines or not finishing a job up to specifications, they may file a claim against your professional liability insurance. Minimize these concerns by never cutting corners on best practices, vetting employees thoroughly and conducting regular quality checks throughout a project.
4. Criminal acts—Your business may often face potential losses related to theft, vandalism and other criminal acts. If your tools, materials or equipment are stolen or damaged, it can lead to expensive direct losses and costly delays. Lock up your job site, secure valuable assets in trailers or safes and consider installing surveillance cameras or hiring security guards.

We’re Here to Help

Contact Luevanos Insurance Agency in Indianapolis, IN, today to learn more about contractors insurance.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.