What is the average cost to business for an uninsured contractor?

As a business owner, it is important to protect your company against potential risks and liabilities. One way to do this is by requiring contractors and vendors to have insurance coverage before working with your business.

Unfortunately, many contractors and vendors do not carry insurance or have inadequate coverage. According to a report by the National Association of Independent Insurance Adjusters, around 30% of contractors are uninsured or under-insured.

Hiring an uninsured contractor can be a risky situation for a business. If an accident or loss occurs during their work, the business may be held liable if the contractor does not have sufficient insurance coverage.

The cost of an uninsured contractor can vary depending on the specifics of the situation, but it can be significant. In the event of a claim or lawsuit, a business may be responsible for paying damages or settlements out of pocket -which can include medical expenses, repair or replacement costs, and legal fees, among other things.

The best way to protect your business from the potential cost of an uninsured contractor is to require all contractors and vendors to provide a certificate of insurance before starting work. This will ensure that they have the necessary coverage to protect your business in the event of a bad situation.

Overall, the average cost to a business for an uninsured contractor can be substantial. By requiring contractors and vendors to have insurance coverage, businesses can protect themselves against potential risks and liabilities and avoid costly expenses in the event of an accident or loss which will also impact your bottom line on a job or overall profitability.

Always seek help from a professional to ensure you are protected.