Insurance Against Lawsuits—Contractors

lawsuits against contractors

Whether it is justified or not, many contractors (regardless of their field of expertise) may eventually have to face the prospect of litigation. The reasons for business litigations and lawsuits vary greatly, and unfortunately, the process can cost your company a great deal. Even if you win in court, the legal costs alone could hinder your company’s profits and progress in the meantime. For most contractors, the threat of such a setback can be greatly mitigated with the right business insurance policy, which can protect you from lawsuits and other potential disasters.

Claims You May Face

Personal injury claims

Employees, clients, and bystanders who have nothing to do with your business can be at risk of injury when you or another employee makes a mistake. The nature of such injuries, and the exact level of risk, depends on a number of factors—mainly, the type of work that you perform. Nevertheless, plumbing, electrical, HVAC, and other contractors are typically at risk of personal injury lawsuits resulting from collateral damage from an accident.

Property damage claims

If you work at a client’s home or office, then an accident or mistake can cause more than personal injury; you might also end up responsible for repair or replacement costs for any property that you damage. Property damage resulting from the work you’ve done can also be a factor.

Claims resulting from miscommunication

When a client is unhappy with your work/services, they may feel entitled to a complete refund on anything that they have paid. In many cases, the dissatisfaction is due to a miscommunication, which can lead to inaccurate expectations and eventual dissatisfaction. You can largely avoid being sued for false advertising, breach of contract, or any other claim brought against you because of dissatisfaction by ensuring you and the client sign a contract that clearly spells out your agreement, and what should be expected.


With over 20 years of experience in the insurance industry, the Jeff Van Matre Insurance Agency can help you choose the right coverage plan to protect your personal and business assets and put your mind at ease. To learn more, or to get a free quote,  call our Carrollton office today at 972-492-8500.