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What Is Contractors General Liability Insurance?

Protect yourself and your business from financial loss with General Liability Insurance for Contractors.

Purchasing General Liability insurance is a must for all general contractors and construction companies. This type of insurance policy can cover the cost of suits and damages brought by others against you, your business or your employees over property damage or bodily injury.

Job sites can be treacherous to navigate and injuries happen. If a third party is injured on your job site you’re at risk for financial loss. If you or your business is sued you are responsible for attorney fees, settlements and damages even if you’re not found liable for the mistake.

This is where general liability insurance comes in. By transferring this risk to your insurance carrier you can have the peace of mind that lawsuits and damages can be covered by the insurance carrier. While not every type of suit or claim is covered under a General Liability policy GL insurance covers the following:

• Damage to others’ property

• Third-Party injuries (clients, sub-contractors, inspectors etc.)

• Personal Injury (claims arising from copyright infringement or libel)

• Completed Products Coverage (problems with your construction or installations down the road)

What incidents does General Liability Insurance cover?

While each policy is uniquely tailored to the particular business the following are common scenarios where a General Liability Insurance policy can help.

• A client meets you at the job site to review the plans as construction is in process. Upon entering the job site they trip on a piece of rebar and fall on their arm, spraining their wrist.

• One of your competitors claims that you ruined their reputation because of a post you made on your business  social media account explaining the benefits of your company compared to contractors in the area. They file a lawsuit for personal injury.

• One of your employees is installing a window and accidentally drops the window from the third story window opening shattering to the ground on another contractor’s equipment causing thousands of dollars of damage and rendering that equipment. That contractor is now unable to work for 5 days until the replacement equipment is delivered losing revenue in the process.

In each of these situations you or your business could be on the hook for tens of thousands of dollars worth of damages. For many businesses that type of sudden financial loss could force the company to close it’s doors. That’s why General Liability insurance is so important.

A GL policy isn’t the only type of insurance policy contractors should consider. Learn more about insurance for contractors.