Contractor General Liability Insurance can protect your business in the event you are sued by someone who got injured on your property or who claimed that one of your contracted jobs made their injury worse.
Below are more details on how this type of insurance can protect your business.
Your legal fees are covered
As a contractor, you are liable for all sorts of claims, disputes, and losses. Like, say if someone gets injured by a piece of equipment you operate because the machine wasn’t properly guarded. Or even something as simple as an animal getting into your storage space causing damage that leads to a claim.
Also, if an accusation comes up against one of your employees accusing them of wrongdoing during a business trip—your contractor liability insurance policy will protect you by covering the defense costs up to the limits you select on your policy (generally between $100,000 and $1 million).
Either way—whether liability is caused by you or one of your employees—if it’s work-related within the scope of employment, attorney fees and settlement awards are covered up to the limit you select on your policy!
Both your business and your customers are covered
Accidents can happen during and after the construction phase of a building, and you need to make sure that these unfortunate events are taken care of.
Listed below are some reasons why contractor general liability insurance can protect both you and your customers:
- You maintain financial protection against bodily injury or property damage caused by an employee while working on a project within the course and scope of their duties under your employ.
- Customers are also protected in the event that you’re found liable for product defects or deficiencies.
If a customer falls off of your work premises, is injured, and decides to sue you—you’re covered under your insurance policy for any damages resulting from the incident. Just note: if the fall was caused by negligence on behalf of someone other than yourself or an employee, there may be no protection.
You have financial protection
You also need to protect the finances of your business, and getting contractor general liability insurance can help cover it.
Some additional ways it can provide you with financial benefits include:
- Coverage continues even after you’ve sold all assets associated with the business (generally up to three years). This means that regardless of whether you sell assets or close up shop—insurance policies will still stay valid out until their time limit.
- The financial stability that comes with having this type of insurance can give you access to capital for new opportunities in your industry—like bidding on larger projects, opening additional locations, or even pursuing additional employees. All these things will help you grow your business!
Research has shown that small business owners are more likely to have accidents when traveling for work-related reasons. If you are a small business owner, you should provide employees with guidance on what they can do to protect themselves while on work trips.
Businesses must also include the cost of insuring their workers when planning budgets in order to avoid being hit by an unexpected expense in the future.
Your employees are protected
If one of your employees is injured in an accident while working, your contractor insurance policy will cover any medical bills and lost wages up to the limits you choose on your policy (generally between $100,000 and $1 million). Depending on the severity of the injury, there may be additional expenses associated with repairing or replacing property or equipment, or even additional damages paid out by you.
If you have employees who frequently travel for work-related purposes, it might be worth adding On-The-Job Injury coverage to your insurance policy. This coverage will help provide benefits should one of your employees get injured while traveling between projects or for business purposes—as long as the injury occurred within 100 miles of his official work site or office!
And unlike PIP coverage which will only cover medical expenses, this policy extends to lost wages, too. So if your employee misses work while he recovers from his injury, or is unable to complete his duties for any reason because of the incident—you’ll have the financial support you need.
Also, if an accusation comes up against one of your employees accusing them of wrongdoing during a business trip—your liability insurance policy will protect you by covering the defense costs up to the limits you select on your policy (generally between $100,000 and $1 million).
You improve the reliability and reputation of your business
If by chance an error in judgment leads to a customer’s injury—your policy is there to provide coverage and support. So when it comes to the time for you to buy Contractor General Liability Insurance, know that the benefits go far beyond just protecting yourself when it comes to times to settle legal matters.
You also win when it comes to establishing credibility with customers who recognize the value of working with professionals who are financially backed by an insurance policy – which means more business in the long run.
Streamlining business operation
Another benefit of this type of insurance is that it gives you the ability to avoid any project hold-ups. Contractors who are new to a field can especially be held back until they have some proof of their financial responsibility, even if they have a great portfolio.
This type of insurance can help you get on with business faster. You never know what sort of surprises your new client might bring so it’s best to be prepared for anything at all times.
Contractors’ building permits may also depend on whether or not you have this coverage. Some jurisdictions require proof that you’re protected before they give you a permit and without this proof, you will not receive one in most cases.
You won’t want to waste time and money going through the permit process without knowing if you’ll be able to move forward with the project.
Contractor general liability insurance is a great way to protect your business and those who work for it. Make sure you choose a policy that fits your particular needs and remember that it’s not just people named on the purchase documents who are covered by the policy.
Be sure to ask any questions about coverage before purchasing or during an active contract with someone else, because having this kind of insurance is very important whether you’re the one making money from performing jobs or if you’re simply trying to be a good neighbor and helping others out when they need some help.