Essential Bonds and Insurance for Contractors

​Contractors insurance is essential in keeping yourself, your investments and your clients well protected. They not only serve as a requirement for construction projects but is also a contractual obligation. It gives all parties including the contractor, project owner, workers, suppliers, and subcontractors the assurance that they will be compensated in case the contractor fails to complete the contract. 

The following are some things to help you better understand contractors bond and insurance.

Liability Insurance
This policy will help with protecting you and your business from financial loss that may result in injuries or damages in your assets. This policy comes in handy when somebody has taken legal action against you, or you are being held accountable for an event that caused bodily harm or damage to equipment Such an incident can be catastrophic to a business’ operation without insurance.

With liability insurance, your provider can help pay for:

• Legal fees
• Compensation or reimbursement
• Settlement
• Medical expenses

Performance Bonds
Insurance bonds help project owners rest assured that they would get proper compensation when the contractor failed to accomplish his contract or obligations. If you as a contractor were unsuccessful to complete a project as specified in contact, the insurance would pay for the completion of the project or hire another contractor if needed.

The performance bond safeguards the completion of a contract and all terms and conditions which has been agreed upon.  It protects the project owner from a loss resulting from the contractor’s default. The insurance company grants compensation to the project or property owner. If the unfinished work has not been specified in the contract, the contractor will not be liable therefore the claim will be rejected.

Payment Bonds
Payment bond guarantees that all labor performed by suppliers, laborers, and subcontractors will receive pay for the work and services done as stated in the contract. The payment bond is typically used in conjunction with performance bonds. When the contractor fails to accomplish payments, the insurance company will grant compensation to the claiming parties.

Working on construction is pose a lot of threat to the safety of workers and the future of a contracting business. Purchase contractors insurance to ensure you can succeed in your endeavors.

At Black And Associates Insurance, we do our best in making sure that our clients are well-protected with affordable and comprehensive policies. We make sure to go the extra mile to help you with your needs. To learn more about how we can help you, please contact our agency at (509) 464-0058 or Click Here to request a free quote.