Most contractors need appropriate insurance coverage to protect their business. As a fire sprinkler contractor, your liability exposure is enormous. Incorrectly installed fire sprinkler equipment can hurt people and damage property extensively. A minor mistake can have dire consequences.
Fire protection insurance companies can create a policy that protects you from any legal claims made against you. A client could sue you for damages even if you installed the fire sprinklers correctly. While you might prevail in a civil lawsuit, you still have to pay for the cost of mounting a legal defense.
The right fire sprinkler contractors’ insurance policy will protect you against legal claims relating to negligence. Sometimes you may hear this type of insurance referred to as errors and omissions insurance.
Your clients will probably require proof you carry errors and omissions insurance before you’re hired to do any work for them. If someone files a legal claim for damages or injuries against you, your insurance policy will help you pay for the associated legal costs, including attorney and court fees.
Sometimes it’s possible to use a retroactive date in your insurance policy to cover previous work you have done as a fire sprinkler contractor. You may also need tail coverage to allow for the statute of limitations on claims that can occur even after you stop working in the industry.
Even once you stop working as a fire sprinkler contractor, you need to make sure your liability insurance still covers your past work. Tail coverage or extended reporting period coverage protects you against claims filed after your liability coverage ended, as long as the alleged claim happened while your full coverage was active.
As a fire sprinkler contractor, you must purchase a comprehensive insurance policy that covers your business. Ideally, you should work with a fire protection insurance company to receive a specialized solution.