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Four Hidden Risks that Can Cost Contractors Money

Source: Medium

As you may know, construction workers and contractors perform one of the most dangerous work out there. On top of that, such individuals often compete – in terms of price – with professionals who either cut corners or reduce quality in order to keep the final costs low.

However, a true professional contractor will never be seen cutting corners. This is because the very work he does may be able to secure him a meeting with a wrongful death lawyer, which will result in him losing a lot of money! To find out more on this, check gladsteinlawfirm.com.

In short, here are four hidden risks that can cost contractors a lot of money – and the main reasons why they should not skimp on quality and cut corners!

Source: contractorcalculator.co.uk

Contracts and Waivers that Don’t Fully Shield Contractors

Contracts with clients and employees, as well as liability waivers, are important when it comes to the risk management part of the work of a construction worker.

However, these contracts and waivers sometimes don’t fully shield the construction worker. Courts are known to be unpredictable in terms of upholding agreements that are outlined in contracts and waivers.

In most cases, individual circumstances decide whether the terms of the above-mentioned documents stand in court or not.

Source: QuickBooks – Intuit

Loss of Personal Assets in a Lawsuit

Contrary to popular belief, the personal assets of a construction worker are not safe from lawsuits that are filed against their business. Basically, if your business is subject to a judgment, the court may go after your personal assets in order to cover the costs that the assets of your business can’t cover.

You may end up being responsible for lawyer fees, court docket costs, as well as evidence costs.

Fortunately, contractors can shield their business and personal assets by investing in the so-called commercial liability insurance. This insurance pays the costs of the lawsuits that are filed against your business.

Source: VGW Texas

Liability Exposure from Business Insurance Gaps

Slow periods in construction work mean that contractors must cut costs. This is usually done by eliminating all unnecessary expenses.

However, there are contractors who will also leave their insurance policies behind as soon as there’s no more work for the season.

In this situation, two things may happen:

  • The contractor will have no coverage for completed-products lawsuits. For example, if a client decides to sue a construction worker over work that they completed quite some time ago, the insurance company will not provide coverage if the construction worker quits their policy.
  • The contractor will have difficulty securing coverage for the next season. Because they start and stop insurance whenever slow periods occur, insurance companies will start to place a red flag on such construction workers. This will make it much more difficult for someone to find an insurer who is able to cover them in the future.

Wrongful Death Lawsuit

As we mentioned a couple of times above, there are a lot of contractors who skimp on quality and cut corners to either finish their project faster or to make more profit than they should.

When a contractor does such a thing, it is uncertain what will happen on the premises of the building they are working on – after it is built. People can get injured or even die due to building failure.

Naturally, a death within or near a building a certain contractor has built – and which is caused by the building – will very likely result in a wrongful death lawsuit.

Source: Halt

AIn short, a contractor that skimps on quality is very likely to put the residents of the building that they’ve built in danger! If an unfortunate thing happens and a loved one gets involved in a wrongful death, immediately contact an experienced wrongful death lawyer.

The Bottom Line

As you can see, contractors not only have one of the hardest jobs in the world, but they also have to face hidden risks, if we may say so.

Any wrong step taken in terms of essentially anything related to their business will usually end up in a lawsuit being filed against them. Therefore, contractors must know how to protect themselves and their business and not engage in practices that could endanger their career!