General Liability Insurance for Contractors
While a good contractor can make a living doing a job they love, the nature of the work creates unique liability concerns that can be catastrophic without insurance. General liability insurance for contractors helps to protect you and your contracting business from common risks such as customer injury and customer property damage. In the event of a third-party incident caused by you or your employees, general liability can provide protection and helps to pay related expenses. Construction general liability insurance is arguably one of the most important types of insurance policies, and, often times, one of the first to be considered when starting a business.
Common Risks That Can Be Covered by Construction General Liability Insurance
- Customer Property Damage: Construction is unique from other industries in that you often work out of client’s homes. If a client’s furniture is damaged during a remodel, or an oily rag is left in someone’s garage and catches fire, your general liability policy can help to pay for the cost of repair, replacement, or even a lawsuit if a client decides to take you to court.
- Customer Injury: If a customer visits your storefront, slips, and injuries themselves, you can be held liable for their injury. Likewise, if a customer trips on a piece of equipment while you are remodeling their home, you can be blamed too. Your general liability policy can cover the cost of medical and legal expenses, in the event that the person sues. Be aware that general liability insurance for contractors does not cover injuries sustained by employees.
- Personal/Advertising Injury: Let’s say you are building a website and advertising your company.You may inadvertently copy the slogan or design of another company, and they might choose to sue you. Your general liability insurance can offer protection if you are sued for slander, libel, defamation, copyright violations, or other accidental advertising injuries.
The Importance of General Liability Insurance for Contractors
While state regulations on insurance coverage vary, it is commonly required for contractors to carry construction general liability insurance in the industry. Customers, or businesses and organizations that you are contracting under, may require a Certificate of Insurance before embarking on a project. In other words, proper insurance is often needed to perform your job.
Additionally, accidents can be costly — so much so that one tiny mistake can put an uninsured contractor out of business. Securing adequate general liability insurance for contractors’ coverage helps to protect you and your business in the event of an unpredicted catastrophe. With so much weight already on your shoulders, give yourself peace of mind with a strong insurance plan.