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Get to Know About Contractors Insurance

Get to Know About Contractors Insurance

Contractors insurance is a specialized coverage for risks associated with contractor's work as a result of a contract. The purpose of purchasing this insurance policy is to protect contractors against liability arising from personal or employee injury, property damage or in the event of any damage or injury to a third party, for which the contractor is held liable.

Contractors face the liability of being sued because of errors
As a contractor, your workplace is prone to certain hazards such as accidents or injuries and thereby you are likely to be affected by third party claims. It covers medical, legal and compensation costs. Let's take a look at some of the liabilities CI covers.

• General liability: Claims made by clients or third parties for bodily injury or property damage, that are caused due to the negligence of contractors are covered under general liability. For example, an employee accidentally injures a bystander while at work and the bystander sues contractor for causing injury. During such situation, general liability insurance will protect you against lawsuit and also pays for medical bills.

• Employers' liability: In employers' liability, employers are held liable for an employee's accident, illness or death during employment for which the parties may sue you. It covers the compensation for loss of wages and provides medical expenses to the injured employees.

• Public liability: Public liability provides coverage for the risks of being liable to pay damages to third parties or damage to their property. Note that it doesn't provide coverage for claims made by your employees.

Things covered by contractors insurance
It covers for injuries or damage to property of others (not the employee or the contractor himself) that is caused by the negligence of the contractor or employees of the contractors. Things that are covered under contractors insurance are:

• Professional indemnity: This insurance is also known as errors and omissions insurance. This insurance will cover you against claims made by any client who suffered financial loss as a result of your negligence, loss or damage of professional documents, dishonesty, infringement of intellectual property and the like.

• Protection of income: In case you are suffering from ill health or severely injured and you are unable to work, financial compensation is offered for the lost income until you recover.

• Covers expenses of litigation: Lawsuits are expensive because you need to pay court fees, attorneys fees and other costs in connection with a lawsuit. Having been covered under contractors insurance, you need not worry of litigation, and can stay in peace of mind.

Points to consider while purchasing contractors insurance
Now that you understand the importance of having contractors insurance, you need to purchase a coverage according to your occupation. Make sure that you check for exclusions, if any, and also, if any liability the policy does not cover.

To get a clarity on what is covered and what is not, you need to be fully aware of your occupation's requirements and then discuss it with reputed brokerage agencies. They will give you professional advice on which and how much coverage is required for you, as a contractor.

Keystone insurance limited is Ireland's premier supplier of public liability insurance and business insurance solutions to Irish industry. Our experienced and professional team quickly arranges quotes for all classes of business insurance.


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