Even a little spark of fire can be a devastating one and fully engulf any building within a couple of minutes. Every year, fire causes millions of property damages, injuries, and deaths. Be it an office or a home, people used to put their best efforts and keep the best arrangements to keep lives and property from being fire damaged. In the case of commercial facilities like hotels, restaurants, hospitals, schools, and office premises, fire sprinklers must be installed by law.
The fire suppression contractor does the job. Their job is so crucial. They must install the device properly, so it works properly in case of an accident. In spite of that, an accident can occur due to malfunctioning of the equipment. If a legal suit is filed against the contractor for negligence on their part, they might end up paying hefty compensations. To offset the possible financial burden, they should have invested in the right fire sprinkler contractor insurance policy.
Why does the contractor need to have insurance?
Even after having proper training, maintaining industry-standard codes, and ensuring that the staff are properly trained, and educated, issues can ripple while the contractor and the team install fire sprinkler systems. The issues are mostly related to faulty equipment and inappropriate installation. If the fire starts and the machine doesn’t work, or if your team causes any damage to the concerned property during installation, legal action may be taken against you and that may result in huge financial losses.
This is the reason that you should have the right kind of fire sprinkler contractors insurance coverage. With the right and dependable insurance policy especially created for the fire sprinkler contractors would be great. With such a policy, not only you but your staff and clients will also be protected.
What kind of insurance do they need?
There are many types of business insurance coverages available in the market. Some of them are legally compulsory while others are not essential. But still, it would be good to invest in them.
- Commercial general liability – If any of your team members damages any client’s property or a 3rd party gets injured, during installation of the system, this insurance will come in handy. It will cover the medical and legal expenses.
- Professional liability – This is also known as errors and omissions. This coverage is essential for the contractors to protect themselves in case of a mistake. If the crew didn’t install the system properly, this coverage would cover the expenses of any kind of damages caused by their mistake. It will also provide coverage against a potential lawsuit.
- Worker’s compensation – It covers the costs of medical care that your staff may need in case of an injury during the job or if any of them develops any job-related illness. This coverage would also help you pay for the lost wages of the employees and for the legal action the team member might take against your organization.
- Commercial auto – If you or the team uses any vehicles for doing some work-related jobs, this insurance helps to mitigate the perils associated with the driving.
These are a few things that fire sprinkler contractors should know regarding buying business insurance.