Insurance Services of Washington Blog
Third Party Liability is a terrible thing; Tort can be a real hassle because often the limits to how much the 3rd party can recover have very vague limits. You can end up paying a lot of money to a person who is injured as a result of what might happen to them.
Contractors are Liable to Third-Party
A unique feature of our law is called tort, even if we do not have a contractual obligation to another if our work product causes them injury we are still somehow held liable for the injury he suffered. Even if it was the person's incompetence that was the primary cause of the mishap the contractor is still liable to a degree.
It is one of the key reasons why there has to be contractors' insurance. Sure, the contract will try to do the best job he can on his given budget. But then again the reality is that he has to protect himself from those who might want to take advantage of the chance for a pay-out.
Doing a Good Job is Not Enough
We used to think that just doing a good job is the best way to avoid liability. However due to the strange way that tort law is written the contractor can still be held liable long after he turned over the project to the principal.
For as long as even the barest connection between the work done and the injury suffered can result in a civil case. It is what the contractor's insurance can protect.
You Never Know When It Strikes
Another reason why you need to be protected is that given the nature of contractor work you might get hit by a lawsuit at a time when you do not have any money available to litigate or settle the claim.
It is bad news because if there is no money to settle, the case will go to trial and if you lose the judge might order the seizure of your equipment making it hard for you to keep doing business.
So, make sure you have insurance to prevent this tragedy. At Insurance Services of Washington Inc., we aim to make our client's life easier with policies that are tailored to their needs. You can get more information about our products and services by calling our agency at (425) 868-1123. Get your free quote today by CLICKING HERE.