Published on May 5th, 2020
Years ago people associated contractor work with the construction industry alone. Now that the gig economy is a part of daily life, there are contractors working everywhere.
Some are experts when it comes to electrical work and interior décor. There are also those who work specifically in the area of technology, providing IT support, design work, and graphics, as well.
Employers who hire contractors or gig workers have discovered the importance of ensuring these projects.
TradeRisk is one resource that makes it possible to select the policies that you require for trade workers and businesses.
Depending on the type of worksite that you have, it may be necessary to choose insurance for contractors, equipment, and even vehicles.
According to CNBC, the gig economy has grown by 6% since 2010 and is expected to continue this way.
These workers represent fields where their expertise is lucrative for outsourcing purposes. They can contract with an employer on a temporary or project-by-project basis.
Having the right insurance coverage for trade work is helpful when it comes to liability and equipment replacement needs.
Here are some reasons that insurance for trade work is important:
1. Insure For Third-Party Projects
The Harvard Business Review found that 150M workers in North America and Western Europe have left traditional employment scenarios to become contractors in the gig economy.
The relationships that are able to develop through this work sometimes include that involving third-party work.
In these cases, having the proper insurance coverage is essential for everyone involved.
2. Unscheduled Delays
It doesn’t matter whether the contract work involves residential or commercial construction.
Unscheduled delays are costly and can hurt businesses who hire contract or gig workers.
Trade insurance coverage can be extremely helpful in these instances. Delays not only negatively impact payment for services but future projects, as well.
3. Growing Contractor Participation
There are times when trade projects require more workers than employers originally thought.
The more people working on any worksite increases liability and injury potential.
In some cases, because of the tools and equipment being used, it is necessary to have the work adequately insured.
Consulting with companies who specialize in these policies is a good idea.
4. Worksite Injuries
Worksites, where physical activity is being done, are at risk for employee injuries.
These don’t only occur in these settings, however. The average office building can be a place where a contract worker falls or slips.
Employers who outsource work or projects must keep this into consideration, which is why having adequate insurance is critical to address all injuries on worksites.
5. Damage To Equipment
Damaged equipment can be expensive to repair and even more to replace. This is true whether your project requires electronics, computers, or vehicles.
Contract workers need to be protected, along with individual worksites. Employers must also ensure that the equipment used is also covered by their insurance policies.
6. Replacement Of Tools
Y ou may find that there are a lot of tools that need to be replaced after trade projects or contract work.
Replacing tools out of business funds is not the best approach, no matter what type of business you have.
Insurance coverage helps you to accommodate diverse projects and work being done by contract and regular workers.
This is one of the reasons that owners consider insurance as an investment back to their business operations.
The way that contractors are hired and work today is much different than it was decades ago.
Insurance coverage provides peace of mind to both employers and their contractors. Fortunately, there are choices possible when it comes to the type of coverage and policy that you can get.
Specialists in this field assist business owners in making this decision so that projects and contractors are protected.
Trade employers who are just getting started can utilize the experience of others by establishing contracts.
These may be short-term projects or even those that are ongoing in nature. Getting insurance for this work allows you to conduct business without worrying about accidents or other issues.
This coverage will in some instances assist you with completing the work. They also provide you with resources to respond appropriately if injuries or damage occur on worksites.
Eric Reyes is a passionate thought leader having been featured in 50 distinguished online and offline platforms.
His passion and knowledge in Finance and Business made him a sought after contributor providing valuable insights to his readers.
You can find him reading a book and discussing current events in his spare time.