General Liability Insurance For Contractors: Here Is Why You Need It
The everyday hustle faced by contractors, builders, and employees working under them is a job of extreme risks that can jeopardize their bodily health. Inevitable occurrences like bodily injury, damage of property, or personal damage can put the contractors at the line for a hefty sum of money, including medical charges. If you are a small business, you would not want to get stuck amidst lawsuits and medical damage costs. Thus, general liability insurance a must for you, and this post will give you more reasons why.
Here’s What General Liability Insurance Means and What Risks it Covers
Whether it’s a construction site or a client’s home, accidents are bound to happen, and to protect you from that, general liability insurance for contractors covers major expenses in case if someone alleges property damage or claims medical expenses for bodily injuries. With no obligation to pay for hefty medical bills caused by the contactor’s work, general liability insurance becomes a must. The insurance covers third-party claims including losses in case –
- Customer faces injury while visiting your storefront, the insurance can cover all the medical costs.
- For any employee responsible for damaging property or any valuable asset of your client, the repair costs would be covered by the insurance firm.
- It also covers costs in case of libel(written) and slander(spoken). It is possible to make mistakes and if by mistake there is some advertising injury like a stolen slogan or plagiarized title, the insurance can cover copyright infringement charges and defamation charges too.
- The general liability insurance also covers attorney fees, funeral expenses, settlements, and expenses to fight the case for judgment.
If you are involved as a contractor or run a small business, considering this insurance policy would save you tons of money and effort. Wondering what are the factors that can alter the cost of liability insurance? Apart from capacity and size of business, some other factors are –
- In the case of risky business types, the cost could be higher.
- The size of the business, including the number of employees working under the corporation.
- Geolocation and history of submitted claims.
Known by CGL, Commercial General Liability might be mandatory in some states, and covering broad-spectrum damages ranging from property damages to medical expenses getting one is always a good idea.