What Does General Liability Insurance for Contractors Cover?

For contractors, whether you’re a seasoned professional or just starting your own construction business, managing risk is a critical aspect of your work. Construction sites are rife with potential hazards, and accidents can happen despite the best precautions—this is where general liability insurance comes into play. It’s a safety net that can financially protect you and your business from various unexpected events.

What Is General Liability Insurance?

General liability insurance is a fundamental coverage that helps protect businesses from various claims. For contractors, it acts as a financial shield against legal issues and financial liabilities that may arise during the course of your work.

What Does General Liability Insurance Cover?

The following are some areas that general liability insurance typically covers:

• Bodily injury coverage—Accidents can happen on a construction site, and if a third party, such as a visitor or a passerby, gets injured due to your business operations, this coverage can help pay for medical expenses, legal fees, and potential settlements or judgments.
• Property damage coverage—This aspect of general liability Insurance may help cover damage to third-party property caused by your business operations. For example, if you accidentally damage a client’s property during construction, this coverage may help cover repair or replacement costs.
• Personal and advertising injury—This facet of the policy addresses claims of slander, libel or copyright infringement. It can protect your business from the financial consequences of such claims, including legal defense costs and potential settlements.
• Legal defense costs—One of the most significant advantages of general liability insurance is that it may help cover the cost of defending your business against lawsuits, even if the claims are groundless. Legal defense can be costly, and having this coverage can save your business from significant financial strain.

Why Do Contractors Need General Liability Insurance?

General Liability Insurance is a critical asset for contractors due to several reasons. First, it may be required for professional licensing or contracts. Second, it serves as a financial safety net, shielding your assets from potential bankruptcy caused by lawsuits. Additionally, it enhances your business’s appeal to clients and project owners who often require it as a prerequisite for hiring. Lastly, this insurance offers peace of mind, enabling you to concentrate on your work without constant worry about unexpected legal or financial challenges.

Contact Express Insurance Services today to discuss your insurance needs. We can help ensure you have the right coverage to prepare for the unexpected.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.