If you are a contractor, chances are you are an expert at your job and you know what you are doing. However, accidents happen no matter how diligent and knowledgeable you are. General liability insurance for contractors helps protect you from liability for those accidents and helps those who are the victims of the damage get the help they need to fix the problem.
General contractor liability insurance offers coverage for protection against lawsuits for accidents, injuries, and certain mistakes made on the job. When you are deciding whether or not to add this type of insurance protection to your overhead, keep these four things in mind.
General contractor liability insurance can save your business from major, catastrophic expenses.
This type of insurance is considered an asset protection guarantee. If another party alleges that your business caused them bodily harm or damage to their property, you may be liable for their expenses yourself. With the general liability coverage, these expenses will not have to come out of your pocket.
Even if you are extremely careful, accidents can occur. You likely have employees and maybe even sub-contractors who can unwittingly cause accidents while working under your employ. In these cases, your business would be ultimately responsible for the damage caused.
Without liability coverage, those accidents can be detrimental to your business. They may even hurt your bottom line so badly that you can’t recover from them.
This type of insurance is not required by law, but it’s definitely the smart option.
General contractor liability insurance isn’t for everybody, but if any of the following situations applies to you, you should make sure you invest in a policy.
- If your clients require you to have proof of liability coverage before working. This helps give them the peace of mind that if there is damage caused by you or your employees, they have protection.
- If your company offers made-to-order services that you design, you will want to be sure that your work is covered if you are sued for professional mistakes.
- If you have been hired as a subcontractor by a general contractor to help them complete a larger project.
General liability insurance protects against liability for physical damages.
Called “bodily injury claims,” these types of accidents are those that result in injury to a person when they are on your worksite or business property. These are quite common and can be costly. General liability insurance can cover these claims if you have a bodily injury policy.
Should an injured party require immediate medical treatment, this section of your liability coverage will kick in as well. Your policy can help them get treatment right away and save you a lawsuit for neglecting to help them quickly.
Policies can also cover damage to property and lawsuits accusing faulty advertising.
In addition to protecting you from liability for bodily injuries, general liability insurance also can help protect your contracting business if someone claims that your work damaged their property. Other policies are available if you advertise for your company and want protection from libel, slander, and copyright infringement. This is especially important if you are advertising on social media.
General liability insurance policies can also include completed products protection in case your final outcome ends up being a product that hurts the homeowner. You are also covered in the event someone in your employ is accused of faulty workmanship, negligent work, or you don’t meet the agreed upon deadline or budget.
Don’t Get Caught Without It
Like most things, we don’t realize how important insurance is until we need it and don’t have it. Don’t leave your business unprotected and your wallet open to liability. Be sure you get a general contractor liability insurance policy and keep your business safe.