General liability for contractors is the foundation of a strong insurance defense. One of the biggest risks in the construction industry is third-party injuries, and some of the most costly claims you could face as a construction professional come from construction defect claims and lawsuits for property damage, medical bills, or accidents.
Contractor General Liability Insurance is intended to guard operators and owners of companies from claims that may come from a broad spectrum of sources. These exposures could be just about anything, including liability engendered by accidents from the operations of the insured party, contractual liability, products manufactured by the insured party, etc.
Contractor General Liability: Protection for Your Construction Business
General liability is designed to protect construction professionals against third-party claims and lawsuits, including:
- Bodily Injury Claims
- Medical Expenses
- Completed Product Claims
- Property Damage Claims
- Personal and Advertising Injury Claims
The liability you select determines the cost of general contractor liability insurance. Also factored into the rates are the kind of work undertaken, gross receipts and total payroll expenses. Similar to auto insurance, when it comes to general contractor liability insurance, you will first have to make a down payment and then follow it up with installments.
It is the general contractor’s job to make sure that the people working under him are covered by an insurance policy. If for example, a person who is not a part of the project gets injured, the injured person’s lawyer can target just about anyone involved in the project. The more individuals that are involved, the greater the chances of a successful lawsuit.
The General Contractor will have to make sure that all his subcontractors have general liability insurance. If they have the necessary insurance the liability exposure, and the insurance rate, is distinctly reduced. Generally, the subcontractor is not considered an employee; he is an independent worker. So, the contractor is not liable for his subcontractor’s mistakes. Still, a lawyer worth his salt can find ways to charge anybody working on the project with negligence. Thus, liability insurance for everyone becomes imperative.
General liability insurance gives you the peace-of-mind that your business assets are protected. If a third-party alleges property damage, injury, or bodily harm, you won’t have to worry about your construction business assets being depleted by medical bills, court costs, settlements, or judgements.
In the high-risk construction industry, safety and protection are part of the job. General liability insurance is one way you can protect your business and keep your assets where you want them. You work hard to build your business. General liability insurance works hard to protect it.