You’ve been working in the construction industry for years, and you can do it all. From hanging drywall to laying tile, there’s no job that you haven’t done. Now you’re ready to take your hard-earned experience and start a business of your own. You’ve saved your money, networked, and crunched numbers until you can see them in your sleep. There’s a lot to be considered when starting up a new business, and one of the biggest is “Do I need insurance?” The answer is yes, and here is why.
All construction workers probably have scars from their years on the job. From smashed fingers to twisted ankles, accidents are going to happen. Some things can be walked off, like tripping over a board left lying in the grass, but others can lead to hospitalization or even death. According to OSHA, one in five deaths in 2017 was construction work-related. This is an extremely high number! If you don’t have insurance, you open yourself up to even costlier and time-consuming lawsuits.
What You Need to Have Insurance On
Your employees are one of your most precious investments, and you need workers’ compensation insurance to protect them in the case of an accident. Many employees won’t work for you if you don’t offer this. Workers’ compensation is something you are required to have by law, so to remain legitimate, workers’ compensation is a must.
You will also need to have insurance on the equipment you use. Now that you’ve spent thousands of dollars on a brand-new truck to haul your equipment, you’re going to want to have it insured. You can also get contractor tool insurance on your equipment in case of theft or damage.
You may even want general liability insurance to protect you in the case of copyright claims, property damage, and product claims.
Insurance requirements vary from state to state, so take time to find out what is required in the state you work in.
What Happens if You Don’t Have Insurance
If you don’t have insurance, you open yourself up to lawsuits and run the risk of losing your business. You may also have trouble getting contracts, as many clients won’t hire a contractor that doesn’t carry coverage. Clients who hire a construction company without proper insurance will be held responsible for any accidents that happen on their property. No one wants to end up paying more money than they must, and many clients will pass on you for the company that does have proper insurance.
Insurance may be expensive, but you will pay more in the long run without it. Running a construction business without insurance will be financially costly, risky for your team members, and detrimental to your reputation. It’s worth it to take that leap and buy insurance coverage on your company and workers. Starting your own construction business will most certainly come with its headaches, but PlanHub can help with that. Our bid management system can help with finding subcontractors that are insured, updating insurance policies, and that dreaded task of managing documents. For information on our bid management system, contact us today!