Insurance for Other Contractors

Contractors bear the risks and responsibilities of making sure that a project meets the expectations of their clients. But unexpected things do happen and when they do, you must make sure that your business is protected with insurance. Insurance covers the costs of lawsuits, medical fees and other expenses so you don't have to pay out of your pocket. You simply need to pay a small monthly fee.

Below are some risks contractors can face:

• You made an unbalanced bid where the overhead cost is more than the estimated price of the project. This will cost your client money, and they may sue your business for their losses.
• Your employee is injured while working on a project. Since you are the employer, you'll be responsible for medical expenses and could face charges if your business is sued in court.
• Your business failed to meet the expectations of your client, forcing your business with the client to end prematurely.

The cost of insurance for contractors usually relies on the size of the business the coverage needed. Without taking these into account, below is the average cost of insurance policies for your business:

• General Liability costs $500 in annual premiums.
• Professional Liability insurance costs $600 in annual premiums.