6 Types of Insurance for Contractors Part 2
Given the complexity of a construction site, the likelihood for injury, and the financial ramifications of delays, it’s necessary for all construction companies to have some type of insurance. While you hope everything goes smoothly, that’s rarely the case. Whether it’s an accident, inclement weather or theft, you need to be covered.
In part one of our series on insurance types for construction companies, we covered the most critical insurance coverages that all companies need to possess. The second part examines types of insurance that protect you from a financial standpoint.
Hold harmless insurance protects contractors and subcontractors from claims and litigation that arise from the actions of another party. Essentially, it resolves them of responsibility should a conflict occur. If you have questions about the types of insurances your company may need or if you have had a claim lodged against you, the Orlando construction lawyers at Cotney Attorneys & Consultants can help.
While many of the insurance types we have mentioned are designed to protect contractors, performance bonds are designed to protect owners. It protects them should a contractor fail to complete a project or some aspect of a project. If this happens, a surety (bank or an insurance company) will compensate the owner for his or her loses. Performance bonds are required for work that involves taxpayers’ contribution.
All contractors are required to have workers’ compensation insurance for their employees. This coverage provides compensation for employees should they become injured or on a job site. Employing workers without this coverage can lead to grave legal consequences for your company.
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Disclaimer: The information contained in this article is for general educational information only. This information does not constitute legal advice, is not intended to constitute legal advice, nor should it be relied upon as legal advice for your specific factual pattern or situation.