If you are a contractor in the Greater Toronto area you have a lot of responsibilities, including business risk management. No matter if you are a small contractor working for other companies or a major contractor with large projects, risk factors are an important part of your business. In fact, the right kind of contractors insurance can mean the difference between failure and success. Here is an example.
Henry L worked as a plumber and for years he enjoyed the work. However, Henry always wanted to be his own boss and dreamed of starting up his own home improvement company. For years, this was just a fantasy, and then one day he unexpectedly received a financial windfall. This was his big opportunity. Henry hired a crew and Henry’s Home Improvement Company was born.
Henry did not have a lot of business risk management knowledge or training, and instead of spending a lot of time learning about it, he decided to use an independent insurance agency with risk management professionals. Henry’s agent found him affordable contractor insurance. Whenever Henry needed advice on risk management, he now had a professional to turn to.
Henry’s first project went well and before long he was working full-time with a lot of satisfied customers. However, this changed about a year later. His home improvement company was sued by a former customer. The customer paid for a room addition and Henry’s electrician made a mistake with the wiring. A 15 amp circuit was installed with a 30 amp breaker instead of 15 amp breaker. Over time, this caused the wiring to overheat and eventually a fire developed. In fact, the fire spread and burned down the entire house.
Henry called his insurance professional and received good news. Because he had a full contractor’s insurance package he was fully covered for the incident, and was able to stay in business.
This coverage is designed to meet the needs of the modern day contractor. It includes your crew, equipment, and legal liabilities. This way, you do not have to come up with a large amount of cash when financial problems strike.
