General liability insurance provides businesses with a host of protections against potential risks, but that’s not all it does. For businesses in Worcester, MA that frequently work with other companies, a general liability policy can be a gateway to lucrative contracts and even more opportunities. Without a policy, businesses may miss out on potential contracts, which could hurt a business in several ways.
Is Your Worcester, MA Business Missing Out on Contracts Because It Doesn’t Have General Liability Insurance?
Companies Sometimes Require Contractors to Have General Liability Insurance
Companies that contract work out to other businesses sometimes require the businesses they work with to maintain general liability insurance. Additionally, the general liability policy usually must provide a minimum level of coverage, which is typically stipulated by the company.
These requirements reduce the risk that a company assumes when outsourcing work to other businesses. In certain cases, a company may be held responsible for an error that a contracting business makes -- and the company may be required to compensate anyone who’s harmed by the mistake if the contracting business can’t afford to provide adequate financial compensation themselves. By requiring all contracting businesses to maintain a general liability policy that has certain minimum coverage levels, the company is able to reduce the likelihood that a contracting business can’t afford to pay a settlement that’s brought about by their mistake.
(These requirements often aren’t limited to construction companies. Although construction companies are often called “contractors,” companies can place these requirements on any business that they contract work to. For instance, a sports stadium that contracts with a business to operate the stadium’s concession stands may require the vendor to maintain a general liability policy).
Your Worcester, MA Business May Miss Out on Contracts
If your Worcester, MA business gets a lot of its work from companies, your business may be missing out on contracts if it doesn’t have adequate general liability protection. Even if your business is qualified for a contract, able to provide the highest level of service, and has the lowest quote, it still won’t get the job if the company you’re submitting a bid that requires contracting businesses to maintain a general liability policy.
Not only may your business be missing out on big contracts, but not getting some contracts could prevent your business from seizing other opportunities. Often, companies that have general liability policy requirements for contracting businesses are established and well-respected companies. Securing a contract with such a company can lead to even more contracts, as a big contract with a well-known company could increase your business’ visibility and provide it with a valuable reference.
Get a General Liability Policy for Your Business
If your business relies on contracts, make sure it doesn’t miss out on any by getting a general liability insurance policy that provides plenty of coverage for your business. Whether you’re preparing bids to submit to companies in Massachusetts or other states, a local insurance agent serving Worcester, MA can help you find a policy that will both provide your business with protection and help it qualify for contracts with other companies that have general liability requirements for contracting businesses.