A general liability insurance policy provides insurance coverage for common business risks such as customer property damage, customer injury, and advertising injury. It is good for small business owners as it protects their business from high lawsuit costs and helps them to qualify for contracts and leases sometimes.
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From general contractors to carpenters, construction business owners, and other contractors encounter high risk in their day-to-day business. General liability insurance helps them to pay various expenses that are related to third-party property damages and injuries.
Suppose a visitor gets injured at a job site or some property gets damaged at the time of renovation, general liability insurance provides cover for medical bills and the repair cost. This policy offers liability coverage that is related to:
Slander and libel
Damage to customer property
Now we will discuss how these coverages protect a business:
In Case of Customer Injuries:
Suppose a customer trips over a ladder or toolbox while one is doing the work of carpentry or electrical, the customer may blame him/her for injury. If the injured person sues the electrician or carpenter, he/she has to pay for the legal and medical expenses. So, the general liability insurance policy provides coverage for:
The fees of advocate
In case of a fatal incident, the insurance pays the expenses of funeral
However, this insurance policy does not cover the injuries of the employees of a business. For that, the business owner has to buy a workmen compensation insurance policy.
Any accident can be expensive for contractors and builders. A general liability insurance policy protects a small business in case of damage to the client's property.
For instance, a client's furniture gets damaged while remodeling, the general liability insurance policy can help to pay for the expenses of replacement or repair. This insurance policy can as well cover the expenses of a lawsuit if a client decides to take the business owner to the court because of damaged property.
Slander and Libel:
At the time of advertising an organization and its services of construction, it is possible to unknowingly copy a slogan or mimic of competitor’s advertising campaign. Accidental advertising injuries are covered in a general liability insurance policy including the following:
Defamation both slander and libel
The construction and contract business must make sure that their general liability insurance plan has product liability insurance as well. These combined policies are as well called products-completed operations coverage. This insurance policy protects the business when the finished work caused property damage or bodily injury because of faulty workmanship.
For instance, a plumber installs a new washbasin in a bathroom. After two weeks, the owner of the home finds out that the washbasin is damaged and it leaked. Under this coverage the legal costs that a plumber has to bear in this case are covered in case a homeowner files a lawsuit because of faulty installation of the washbasin.
Factors that Decide the Cost of General Liability Insurance for Contractors:
After understanding the coverage of liability insurance for contractors one may think about its cost and the factors that decide it. Here we are discussing the same. The below factors decide the cost of liability insurance policy:
Type of business
The physical size of the business of the contractor
Number of employees in the business
Experience of a contractor also decides the same
Limits and deductibles as well decide the cost of the insurance policy
Location of the business
History of claims made by the policyholder
The Final Words!
To safeguard his/her business from general liabilities, a contractor must opt for a general liability insurance policy for contractors. The benefits and inclusions under this policy are mentioned here. Moreover, with the understanding of the factors that decide the cost of a general liability insurance policy, one can decide to select a suitable plan for her/himself. With vast coverage and affordable costs, most of these insurance plans are recommended by various insurance experts. So, if one owns a business especially of small to medium size, then having this kind of plan can help him/her in long run.
Written By: PolicyBazaar - Updated: 05 August 2021
The premiums offered by PolicyBazaar for the Comprehensive General Liability Insurance are competitive, considering the extensive coverage and top-notch customer service they provide.Truly recomend it.
4.3 March 28, 2023
PolicyBazaar worked closely with me to tailor the coverage to meet the specific needs of my business.Worth buying.
3.8 March 16, 2023
One of the most significant aspects of this insurance is its coverage. It provides extensive protection against a wide range of liabilities, including bodily injury, property damage, etc. Thanks for the policy PB
3.8 March 04, 2023
Peace Of Mind
I have been a satisfied customer of PolicyBazaar for several years now. It offers a comprehensive and reliable safety that has given me peace of mind and allowed me to focus on growing my business without constant worry about unforeseen events.Thankyou PB.
3.8 February 20, 2023
Claim Process Is Hassle Free
PolicyBazaar's claims process is efficient and hassle-free. In the unfortunate event of a claim, they handled everything swiftly and professionally, ensuring a smooth resolution without unnecessary delays. This reliability and promptness have further strengthened my trust in their services.Thankyou.
4 February 20, 2023
Great Customer Support
PolicyBazaar can help you get your Insurance as I am in the construction Industry and needed some guidance on risk concerns. I contacted PolicyBazaar Team, whO explaned to me the process to get the Insurance. Thank you PolicyBazaar.
3.8 February 16, 2023
I recently purchased CGL insurnace from PolicyBazaar. They helped me to cover my damages. Thankyou.
4 February 12, 2023
We were looking to buy Comprehensive General Liability Insurance Plan that protects Third party property from any accidental damage at my workplace. So we landed on the PolicyBazaar website. It was well managed and described all the benfits in detaill... We contacted their Customer support and dcided to buy from them. Thanks, PolicyBazaar Team
3.8 February 08, 2023
All In One Platform
It is an All in one platform which provided me unique perks, Low premium prices and a fast claim settlement process. Thankyou PB. Excellent platform.
+Premium varies on the basis of Occupancy, Business Activity & Coverage Type
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