When working for others in a contractor capacity it is important that both the contractor and the customer feel confident they are covered in the event of an accident or a larger project issue than was originally expected. In this business more than any other there is always a surprise waiting when fixing something in a building. It is almost inevitable that more is going on behind the wall or in the crawl space than was not planned for. When this happens it is best that there be protection for both parties in place.
Contractor liability insurance helps take pressure and stress off of both parties. Because insurance is so important there are factors that go into the building of a policy. The type of work done is part of this system. Men who work with a lot of power tools will need to be insured at a higher rate because of the potential for there to be an accident that is extremely physically harmful to the worker. If dropped a circular saw may malfunction and continue to turn the blade. This could take off fingers, toes or even cut major arteries on its way down.
Contractors liability insurance is also a policy that covers injury to passers by. Today when there is a project on city streets it is mandatory that the company take all precautions to keep the public safe from harm due to the construction going on. Most companies put up large squares of chain link fence, post signs that there is no trespassing and even put large locks with chains on all openings so there is less chance of a person wandering onto the site and getting hurt.
Regardless of the amount of precautions that are taken by responsible contractors some people still force their way into private property and get hurt or killed by messing with dangerous machinery or fall into darkened holes that are dug for the construction project. The insurance policies in place will cover injuries for these inevitabilities.
Other possibilities are that something happens and materials fall from high up on a building. In some cases these items can hit those walking by. Many times there is a walkway built specially for this possibility with a wooden roof to protect those walking by innocently. If circumstances still have accidents the insurance will cover it. The medical bills for an individual will be covered and there is also compensation paid for their families if they were the only or main breadwinner of the family.