General Liability Insurance for Contractors, Builders & Other Construction Professionals
Construction and contract work encompass some of the most diverse occupations, and with this diversity comes a number of risks. While some contractors and construction businesses have storefronts that clients could visit and potentially sustain an injury on the premises, others install drywall or kitchen cabinets in homes and could be held liable for the products if they inadvertently cause harm.
Contracting and construction business owners rely on adequate General Liability Insurance to safeguard their business against the mounting risks of potential lawsuits over accidents, injuries, and illnesses — especially in today's litigious environment.
Contractors benefit from General Liability Insurance in three ways:
Protect your business assets
If a third party alleges bodily harm, injury, or property damage, and you don't have General Liability coverage, your contracting or construction business assets could be seized to pay the judgment.
Security for construction,
contracting & employees
With this coverage, you can carry out daily work knowing you and your employees are protected from uncertainty. General Liability coverage protects your business against claims brought against the company as a whole, as well as claims brought against individuals employed by the company.
Offers a survival plan
This coverage ensures your contracting or construction business can survive if a judgment is passed, and cover court costs and settlements up to the specified policy limits.
As you consider your coverage needs, it's helpful to know the kind of claims General Liability Insurance safeguards your contracting or construction business against — and what it doesn't. Take a look at the types of third-party claims typically covered by General Liability Insurance for contractors, and be sure to ask your Insurance agent about the policies that fit your business needs.
Bodily Injury Claims
As professionals in a labor-intensive industry, builders and contractors know that no matter how careful a business is, accidents happen, especially when untrained visitors enter a worksite. With General Liability Insurance, though, you have the protection your small contracting or construction businesses needs against these all-too-common accidents and lawsuits.
In the event of an accident on your business premises, these policies pay for medical expenses, funeral expenses, and court-awarded compensation if a third party's injury results in death. While General Liability covers injury- and illness-related expenses for third parties, your own employees' on-the-job injuries are sometimes not covered under the General Liability policy. Contractors in New York State should inquire about Labor Law 240 and 241 coverage which would cover injury to employees.
Property Damage Claims
General Liability Insurance protects your contracting or construction business against the high cost of a lawsuit if someone alleges that your business damaged their property or that your business is responsible for their inability to use that property. For contractors who work in remodeling, it's important to note that property damage liability coverage typically does not cover damage caused to client property you are working on.
Completed Products Claims
General Liability Insurance policies can protect your construction or contracting business against claims related to the services you've completed and the products you've produced. So if, for example, your business inadvertently installs kitchen cabinetry with unstable shelving that ends up injuring the homeowner, your contracting company could be found liable. With the proper coverage, however, your legal expenses and any damages can be covered, up to your policy limits.
Personal & Advertising
If you advertise for your contracting or construction business, you may want to consider a General Liability policy that covers copying another party's advertising or infringing on copyrights or brands. Allegations that your contracting or construction business caused non-physical damages to another person or entity are all too common when competing with other businesses in the same industry.
Medical Expenses Claims
Should an accident happen on your business premises to someone who is not employed by your contracting or construction business, General Liability Insurance covers the expense of the injured person's medical attention. Remember if someone is hurt on your property that you insist they seek medical assistance immediately. From an insurance standpoint, it's better to compensate for immediate medical costs, such as a trip to the ER, rather than risk the liability for not attending to the situation right away.