In the world of contracting, having the right insurance in place is crucial for keeping you in business when something goes wrong. One of the most important insurance coverages is contractor’s liability. This type of insurance protects your company when something happens after you finish a job. However, obtaining the right insurance is just the beginning. As part of your risk control program, a quality assurance policy should be developed to minimize the risk of claims. This is essential for maintaining affordable insurance rates. This blog delves into both contractors’ liability insurance and establishing a quality assurance policy.
What is Contractors Liability Insurance?
Contractors’ liability insurance protects contractors from liability for damages or injuries due to their completed work. In other words, if something you worked on fails and causes damage or hurts someone, this insurance can help pay for the costs. But remember, it won’t pay to fix the mistake, just the damage it caused. This coverage differs from general liability insurance, which addresses incidents during the project.
For example, should a construction project lead to structural failure months or years later, contractors’ liability insurance covers legal fees, damages, and medical costs. Again, this insurance does not extend to the costs of correcting the faulty work but to the resulting damages to the surrounding property or individuals.
Why a QA Policy
A Quality Assurance (QA) policy ensures that work meets specified requirements and standards. It requires monitoring, documenting, and inspecting workmanship to identify and correct potential problems. This proactive approach will maintain high-quality standards, reduce liability, and assure client satisfaction. It also has the advantage of creating a regimented process for documenting your work. This could be important if you end up in court and need to prove that your work was performed according to specifications. Plus, if you’re looking for cheap contractor insurance, showing you have a solid QA policy can make you look like a safer bet and result in better rates.
Four Key Benefits of a QA Policy:
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Lower Insurance Costs: Making sure everything is done right from the start reduces the chance of having claims later, which can help keep insurance costs down over time.
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Protect Your Company: A good QA policy helps avoid big disasters that could cost you money in re-work and, more importantly, keep you from ending up in court. There are pitfalls in the contracting business, and this helps you avoid them.
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A Good Reputation: People notice when you consistently do great work. This means clients and partners trust you more.
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Being Prepared: Sometimes, you must have certain insurance to work on big projects. In many cases, the GC will also require you to have a QA policy in place. With the right insurance and risk control programs in place, you are ready to work.
Cutting Costs on Insurance
The price you pay for insurance depends on many factors, such as your business’s size, location, and type of work. Smart contractors know that a good QA policy isn’t just about doing good work; it’s also a secret weapon for paying less for insurance. By reducing the chances of making a claim, you’re not just saving money now—you’re also setting up for savings in the future.
Smart Tools for Smart Contractors
Are you looking for the best deal on insurance? Check out online tools like smarterrisk.com. We offer a quick check-up to see where you might face risks and even help you create a QA policy in no time. And the best part? Getting started doesn’t cost a thing. Sign up for a free assessment here.
Wrapping Up
In a world where your work today can come back to haunt you tomorrow, being smart about insurance and having a QA policy is crucial. It’s about more than just avoiding problems; it’s about building a lasting business. For those navigating these waters, using tools like smarterrisk.com to get ahead in risk management is a game-changer. So, take a little time and put the right programs in place. It’s easier than you think, and your future self will thank you for it.
