As a contractor, you face many risks on the job. From property damage to personal injury, there are countless things that could go wrong. That’s why it’s important to have general liability insurance. This type of insurance may protect you in the event that something does happen. In this guide, we will discuss why contractors need general liability insurance and how it can help protect you and your business.
What is General Liability Insurance?
General liability insurance is a type of insurance that contractors can purchase to protect themselves from certain risks. These risks can include property damage, bodily injury, and even personal injuries like libel or slander. This type of insurance can help contractors avoid financial ruin in the event that they are sued for something that happened on the job.
Reasons Why Contractors Need General Liability Insurance
Contractors face a number of risks in their line of work that make general liability insurance essential. This includes:
The Possibility of a Bodily Injury Claim
If someone is injured on the job, they may try to sue the contractor for damages. This type of insurance can help cover the costs of legal fees and any settlements that may be awarded. If you operate in New York, then it’s important to pay close attention to New York Labor laws 240 and 241 also known as the NY Scaffold Law. Some general liability policies may exclude coverage pertaining to this law so it is important to know whether action over (aka NY Labor Law) coverage is excluded from your policy or not.
Also, a bodily injury claim could come from something as simple as a customer or client visiting your business and slipping on your floor which could result in financial damages. Commercial general liability provides coverage for bodily injuries suffered by third parties on your premises or in relation to your business operations.
The Possibility of a Property Damage Claim
If contractors damage someone’s property while working, they may be held liable. This can include accidentally breaking furniture or cracking a floor tile when working on a property. This type of insurance can help pay for the repairs that are needed. It’s also a good idea to check if your policy includes a property damage deductible. For example, some carriers may include a five hundred or one thousand dollar property damage deductible.
The Possibility of Advertiser Injury
If one of your employees slanders another business while working, you could be sued for damages. This type of insurance can help cover the costs of legal fees and any settlements that may be awarded.
A Requirement to Obtain a Contract
Sometimes you will run into jobs that require contractors to have general liability insurance before they can even bid on the job or be allowed on a job site. Also, some companies require that contractors and freelancers have insurance because it protects their companies from financial loss due to their actions.
What Types of Contractors Need General Liability Insurance?
General contractors, subcontractors, specialty trade contractors, home improvement contractors, and even some construction managers should all consider purchasing general liability insurance. If your work is in the construction or trade industries, then it’s probably a good idea to consider general liability insurance.
As contractors, we are always at risk for injury or property damage to ourselves and others because of our line of work. It is important that you have general liability insurance in place so that if something does happen on the job, your business will be protected.
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