There’s a lot of responsibility required as a fire sprinkler contractor, and one wrong move can land you and your company in legal trouble. However, accidents can happen, and this is a fact that can’t be changed no matter how much we want things to go perfectly. That’s why It’s necessary to invest in liability insurance for fire sprinkler contractor—this way, you can protect yourself, your staff, and your business from massive fees and incredible loss.
Common Loss Exposures for Fire Sprinkler Contractors
Damages Caused by Negligence
When we say ‘negligence’ in this context, it means that the contractor failed to take proper care while doing their job. If the client decides to file a lawsuit against you or the contractor due to negligence, you could end up losing a hefty amount of money due to the fees.
With that in mind, what can you do to lessen the chances of negligence?
- Always check your staff or subcontractor’s work. Make sure that they know of the proper regulations and codes within your local area.
- Make sure that proper fire protection practices are being followed to keep these kinds of losses few and far in between.
- Before installing any of the materials, thoroughly check each one for compliance or if there are any faults or damages. Even if the error is from the supplier, you may still have to face a negligence claim.
It’s never anyone’s intention to damage their client’s property, but in the event that your staff accidentally damaged the property, you could find yourself in a costly lawsuit. Some examples of water damage to the property include:
- There’s a plumbing leak caused by your employee, or a pipe has burst
- Employee failed to turn off the water source while installing the system
- A sprinkler head has been damaged
Incorrect Installation or Faulty Equipment
Even though your staff has been trained adequately and you follow all the codes, unforeseen circumstances may still occur during the installation process. For instance, the contractor may have accidentally used faulty equipment, leading to incorrect installation.
That being said, here are some tips you need to keep in mind to reduce the chances of this happening:
- Thoroughly inspect each work done by your staff. This gives them the chance to learn from their mistakes, while at the same time, this ensures there are no incorrect installations.
- Require your employees to follow all codes and regulations.
- Always train new staff members on the different types of errors and accidents that could possibly occur, as well as advice on how to prevent or fix them.
What Affects the Pricing?
When it comes to insurance, not every company has the same pricing. In fact, insurance pricing completely depends on several factors.
Type of Work
One of the main factors considered when pricing insurance coverage is the type of work being done. Insurance companies and even specific trade organizations take note of loss history according to work type, state, and class. Other factors include how much the company has grown, as well as the size and scope of the company.
Losses Over the Last Few Years
Remember that insurance companies are just like your regular business—they’re also trying to make money or at least not lose more than they could earn back. As such, insurance companies typically prefer those businesses with a low loss history. It’s a plus if it has been in the business for a while now because it means they know what they’re doing already.
How Many Years in Business
Your company’s overall years in business play a major role in how much your insurance coverage is going to cost. The Underwriters take a look at your years of experience as well as your losses to determine whether or not you’re a good risk.
How Many Years of Experience
Similarly, the more years of experience you have, the more favored you will be by the insurance company. After all, they compare and contrast your years in business with your loss history to see if you’re eligible.
The Different Types of Insurance Needed
That being said, more than one insurance policy is needed for fire sprinkler contractors. We’ve listed some of them below along with a brief description, so you have a better idea of what they’re for.
General Liability Insurance
General liability insurance is perhaps one of the most important ones on the list because, with this insurance, you can rest easy knowing that your business and its assets will be safe and protected in case of any unexpected events. For instance, in case a client files a lawsuit against your company or demands compensation for damage, injury, etc., you won’t have to worry about your assets being reduced to cover legal fees, medical bills, etc.
As a contractor, driving around in cars is fundamental in order to get the job done. After all, you have to go to different clients’ properties for installation and other types of service. Unfortunately, it’s not always a guarantee that you’ll be safe on the road because there are several risks to driving. To keep your peace of mind, business auto insurance coverage is a necessity, especially if your company owns or leases vehicles.
It’s common knowledge that construction sites are prone to accidents. For instance, a flash storm could damage important materials that are being kept on-site or perhaps a sudden fire ravages the work you’ve completed. There’s a variety of risks and accidents that could happen, and a builder’s risk insurance policy can help you recoup your losses.
Worker’s compensation is also another important insurance policy to invest in. This particular insurance helps cover any work-related injuries suffered by your employees, even including illnesses and death. In case your staff members get into some kind of accident while on the job, worker’s compensation will be able to help protect not only the affected employees but your business as well.
As you can see, it’s vital to have an insurance policy for your fire sprinkler contractors. So many unexpected things could happen while on duty, and these policies will be able to help you in more ways than one.