What must contractors do to protect their business assets?

Carrying adequate insurance is fundamental for contractors to protect their business assets because it provides a financial safety net against various risks and liabilities that can arise during the course of their work. Insurance helps mitigate the financial impact of incidents such as property damage, accidents, or legal claims that could otherwise threaten the viability of the business.

For example, general liability insurance can cover costs associated with bodily injury and property damage that may occur on the job site, while workers' compensation insurance protects against expenses related to injuries sustained by employees. By having sufficient insurance coverage, contractors can safeguard their assets and ensure that their business remains operational even after unforeseen events.

This proactive approach to risk management not only secures physical assets, such as tools and equipment, but also preserves the overall reputation and financial health of the business, allowing contractors to continue to operate without excessive financial strain after a loss.