Tips That Limit Contractor Liability During Remodeling Projects
The remodeling projects you perform as a contractor transform your client’s house into a home. You face several potential liabilities as you perform your job, though, so consider several tips that reduce your risk.
Purchase Adequate Contractor Insurance
Insurance doesn’t prevent injuries or damages. However, it does protect you if you must file a claim because of a design flaw, personal injury, property damage or other challenge. Discuss details about your business, needs and budget with an insurance agent, and purchase the right policies for your needs.
Limit Distractions
You may be unable to avoid phone calls or other interruptions during the day. However, distractions can cause you to make mistakes that could lead to a future lawsuit.
Ask for Help
Consider hiring an employee or independent contractor for complicated jobs or tasks that require heavy lifting or a spotter. They can provide invaluable assistance so you don’t injure yourself or break something in the house. Be sure to classify your helpers properly so you can avoid large IRS penalties and fines.
Secure Your Tools
It’s convenient to store your tools on the job site. Don’t let them lying around in the open, though. Lock them in a secure box or trailer. Lost, stolen or damaged tools stall the job progress and can be expensive to replace.
Use Caution Tape
Part of the remodeling project may require you to tear out a floor or install insulation. Caution tape or another deterrent protects your hazardous workspace from curious clients and their kids, pets or neighbors.
Maintain a Clean Job Site
Cleanliness reduces injury and illness risks and your liability. Clean up loose nails, sawdust and other debris throughout the day. Lay down a tarp, too, and wear booties if you must walk through your client’s home as you reduce pollution and pollutants.
Remember Your Manners
Friendliness, respect and courtesy won’t keep you safer on the job or prevent an accident. However, manners can increase the likelihood that your client will respect your workspace. They may reduce potential liabilities that occur if an unauthorized person uses your tools or damages a work in progress.
Use a Secure Payment Method
Protect your client's personal information from identity theft. Deposit a check as soon as possible so no one can copy it, and don't store credit card information.
Finish Projects on Time
If your remodeling contract lists a deadline for project completion, you could face charges if you run over schedule. Some delays may be inevitable, but try to finish on time when possible.
As you perform remodeling jobs in a client’s home, follow these tips. They reduce your liability and protect you and your contractor business.