Studies show contractors have been a significant part of insured losses from every type of peril, especially fire, sprinkler, leakage and water damage. Some contractors are less vigilant than employees. Some contractors perceive their tasks are considered less important by management, a perception reinforced if their work is not monitored by company supervisors. Safety records are as important as references. This is the right to collect damages from third parties responsible for losses.
Some contractors offer lower-priced contracts in exchange for a liability waiver.
This may seem to make sense, but it can mean facing legal and financial consequences for a loss alone, including the insurance deductible. A prolonged shutdown may exceed the limits of a business-interruption insurance policy. But Performance Clearly, most contractors, vendors and suppliers have a strong sense of responsibility because their success also depends upon their reputation. It is merely prudent to know their business, to carefully review records of reliability, demonstrated quality, financial stability and customer service. Business interruption is not an option, because recovery is something that cannot be guaranteed.