General Liability Insurance for Contractors

Being a contractor comes with many responsibilities such as ensuring safety in the workplace, following regulations, and completing work on time. However, even with the best practices in place, accidents can happen. This is where general liability insurance for contractors comes into play. This article covers the basics of general liability insurance, why contractors need it, and how to choose the right policy for your business.

What is General Liability Insurance?

General liability insurance protects your business from financial loss due to claims of injury or property damage caused by your business operations or employees. This insurance covers legal fees, medical expenses, and damages if you are found at fault. This insurance does not cover intentional damage, professional mistakes or errors, or damages to your own property.

General liability insurance is essential for contractors as they work on job sites that are often dangerous and have potential for accidents. Accidents can happen to anyone, and without insurance, a contractor can be left with a hefty bill.

What Does General Liability Insurance Cover?

General liability insurance covers bodily injury and property damage caused by your business operations or employees. For example, if a visitor trips and falls on a wet floor at a worksite and requires medical attention, general liability insurance can cover the medical bills and any associated costs.

General liability insurance also provides coverage for damages to third-party property. For example, if a contractor accidentally damages a client’s property while performing services, general liability insurance can cover the cost of repairs or replacement.

General liability insurance can also provide coverage for libel or slander claims. For example, if a contractor publishes a statement that damages a client’s reputation, general liability insurance can provide coverage for any legal fees or damages associated with the claim.

What Does General Liability Insurance Not Cover?

General liability insurance does not cover intentional or criminal acts, damages to your own property, or professional errors. For example, if a contractor intentionally damages a client’s property, general liability insurance will not provide coverage for the damages.

Professional errors or mistakes are not covered by general liability insurance. For example, if a contractor fails to complete a project on time, general liability insurance will not provide coverage for any associated costs.

General liability insurance does not provide coverage for employee injuries, which are typically covered under workers’ compensation insurance.

How to Choose the Right General Liability Insurance Policy

Choosing the right general liability insurance policy can be overwhelming. Here are some tips to help you choose the right policy for your business:

Determine Your Coverage Needs

Assess your business operations and determine what type of coverage you need. Consider the risks associated with your work and choose a policy that provides adequate coverage for those risks.

Compare Policies

Shop around and compare policies from different insurers. Look for policies that offer the coverage you need at a price that fits within your budget. Do not forget to read the fine print and understand the coverage exclusions.

Choose a Reputable Insurer

Choose an insurer with a good reputation and track record. Look for an insurer that has experience working with contractors and has a history of paying claims on time.

Consider the Deductible

The deductible is the amount you pay out of pocket before the insurance coverage kicks in. Consider how much you can afford to pay in a deductible and choose a policy with a deductible that fits within your budget.

Review and Update Your Policy Regularly

Review your policy regularly to ensure it still provides the coverage you need. As your business grows and changes, your coverage needs may change as well.

FAQs

General liability insurance is a must-have for contractors. It provides protection from financial loss due to accidents that may occur during your business operations. By understanding what general liability insurance covers, what it does not cover, and how to choose the right policy, contractors can ensure they are adequately protected.