Every contractor needs various types of insurance to protect their business, as it involves multiple high risks. Without the right insurance in place, it’s possible to face huge lawsuits that drain all company assets.
Here’s a look at the importance of general liability insurance for contractor enterprises.
What Does General Liability for Contractors Cover?
Any business can face harmful accidents, but contractors face much higher risks than the common operation. Project crew members can make mistakes that lead to devastating financial loss for the client or third parties. General liability insurance for contractor businesses provides coverage that pays for repair to damaged property, as well as medical bills for accident victims who are not employees. Those workers injured on the job must be covered by a mandatory workers’ compensation policy.
Your general liability plan will pay for various types of litigation that may arise, such as damage to the client’s property if the case goes to court. Not only does general liability insurance cover attorney fees and court costs, but it also pays for settlements up to coverage limits, which can save your firm thousands or millions of dollars.
Less talked about are advertising injuries, but a general liability policy covers those cases as well. If your company uses marketing content that’s similar to a competitor in your market, the competitor might sue for copyright infringement. Copyright ownership protects images, videos, logos, musical compositions, and blog content. If a business uses another entity’s copyrighted material without permission, the copyright owner has grounds for a successful lawsuit.
Another form of advertising injury is slander, which is oral defamation of someone’s character. If spoken slanderous statements are shown to be false in court, the injured party can be awarded a financial settlement. Libel is a similar type of advertising injury, except it involves damaging someone’s reputation through published text.
Contractor General Liability – a Quick Summary
It’s essential for construction contractors to carry customized liability insurance on top of a general liability policy. A general liability policy covers the basics, such as the cost of repairs, hospital bills, and legal expenses. Since it doesn’t cover every risk a construction firm faces, it’s important to add coverage extensions to your basic plan to mitigate special risks.
A construction business needs many additional protections outside a standard plan for risks that are present both on or off a project site. Any type of financial or health risk your team faces should be addressed with your insurance agent so you can solidify sufficient coverage.
What Doesn’t General Liability Cover for Contractors?
Even though a general liability plan for contractors addresses a wide range of risks, it typically doesn’t cover self-injuries or intentional damage to third-party property. Nor does it pay for damage that occurs during the construction process. It also doesn’t cover company vehicles, which are protected by auto insurance policies. Lost or stolen equipment aren’t covered either but can be by a commercial property or renters insurance plan.
Consult With Pittman Insurance Group, LLC
If you would like deeper insights on general liability insurance for contractor issues, contact our team here at Pittman Insurance Group, LLC. We are happy to answer your questions and make sure that your contracting business is protected with the right liability insurance.