General Liability Insurance for Contractors

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:

• Customer injuries
• Slander and libel
• Damage to customer property
• Product liability

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
• Settlements
• Court-orders judgments
• Medical bills
• 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.

In Case of Customer Property Damage:

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:

• Copyright infringement
• Defamation both slander and libel

Product Liability:

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.