The Butler Blog

Uninsured Contractors-Could this be your Valentine Letter?

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Tommy writes a Valentines letter. He is so thoughtful…it hurts!

Dear Sweetheart,

I want to go into business for myself as a contractor. But there are risks involved and I want to make sure you are on board with them. I met with an insurance agent today who was all gloom and doom. You will be proud of me because I didn’t fall for it and I saved us a lot of money. I made a list of everything we talked about. I am not bragging but I think I did pretty good. What do you think?

1. The agent said I am required to buy Workers Compensation Insurance in Tennessee if I am a commercial contractor. That can’t be right. So I think I will skip it. It costs too much. I could be seriously hurt but I promise to be careful. Of course, it’s possible Johnny, my helper, could get hurt. But I’ve known Johnny a long time and I don’t think he would sue me if he got hurt. Besides, I think the people I am working for have to pay any on the job injury claim, if I don’t have insurance. That’s like free insurance, right?
2. The agent said Commercial General Liability Insurance is optional. It’s not as expensive as Workers Compensation Insurance but I can save money by not buying it. Oh, it’s possible me or Johnny could hurt someone. But, like I said, we are careful. I guess we could damage an owner’s property. You know like dropping a hammer on someone’s copying machine. But how likely is that?
3. This agent I met with today tried to sell me insurance on my tools and equipment, too. I told him I didn’t need that either. I know we still owe for some of it. But I can rent almost everything I need if I had to finish a job. I think any owner would understand if their job were delayed due to something happening to my equipment. Now the bank might be a little mad if I am late on a payment but I would just have to explain it. They will understand.
4. I passed on buying the Commercial Auto Insurance, too. Do you realize a commercial auto policy is more expensive than a personal auto policy? The agent was going to explain that but I told him not to bother, since I wasn’t going to buy it anyway. Why spend the money when I’ve got a personal auto policy, right?
5. I got down right angry with that agent when he suggested that Johnny might steal from me or sue me if I fired him. I guess these insurance agents will say anything to sell a policy.

I know I may miss a job or two because I don’t have all this insurance but look at the money I am saving! Besides if I have the right price there are many owners who will hire me, right? Now, Honey, I don’t think we have much to lose, do you? And with the money I saved today we can celebrate by going out to dinner tonight. Shucks, I saved enough today to buy that new furniture you want. How about that for a Valentine gift!

Anyway, I have always been truthful with you and I didn’t want to sugarcoat the risks of me going into business as a contractor. Won’t it be great when I am my own boss?

Love,

Tommy

If you are a commercial contractor, don’t be like Tommy. Give Brad Butler a call at 615-690-8857 or drop him an email at brad@insurancebutler.com. He’ll do his best to help you get the protection you need at a fair price.