Common Contractors Insurance Claims and How to Avoid Them 

Contractors face various risks on the job, making insurance claims a common occurrence. Understanding the most frequent claims and how to mitigate them can help contractors maintain a safer work environment and reduce the need for filing claims.

Property Damage Claims

Property damage is one of the most common claims contractors may face. This can occur when a contractor accidentally damages a client’s property, such as breaking a window or damaging landscaping. To limit these claims, contractors should:

• Conduct thorough site inspections before starting work.

• Use protective coverings and barriers.

• Train employees on careful handling of tools and materials.

Bodily Injury Claims

Injuries to third parties, such as clients or bystanders, can lead to significant claims. These injuries might occur from falling debris or accidents involving equipment. To reduce these risks:

• Implement strict safety protocols.

• Ensure all workers wear appropriate personal protective equipment.

• Clearly mark hazardous areas and restrict access.

Workers’ Compensation Claims

Workers’ compensation claims arise when employees are injured on the job. Common injuries include falls, cuts and strains. To minimize these claims:

• Provide regular safety training.

• Maintain equipment to prevent malfunctions.

• Encourage a culture of safety where employees report hazards.

Faulty Workmanship Claims

Claims related to poor workmanship can be costly and damage a contractor’s reputation. These claims often involve repairs or replacements due to substandard work. To avoid these claims:

• Hire skilled and experienced workers.

• Conduct quality checks at various stages of the project.

• Use high-quality materials and follow best practices.

Theft and Vandalism Claims

Theft of tools, equipment or materials, as well as vandalism, can disrupt projects and lead to claims. To protect against these incidents:

• Secure the job site with fencing and locks.

• Install surveillance cameras.

• Keep an inventory of all tools and equipment.

We’re Here to Help

Despite your best efforts, you may inevitably find yourself in situations where you need to file a claim against your insurance. Fortunately, a qualified agent can help. Contact Bill Caldwell Insurance Services LLC in Baton Rouge, Louisiana, today to learn more about contractors insurance and how you can secure appropriate coverage.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.