With 2 out of every 5 small businesses predicted to face a liability claim by 2030, construction General Liability insurance protection is needed more than ever. There are many things that can go wrong on a construction site and when running a construction business, from injuries to property damage and lawsuits from competitors.
Without proper insurance, all these unfortunate events can spell disaster. But how can you find the best policy for your business? In this article, we’re going to find out.
Find out what your policy covers
A construction General Liability Insurance protection policy will cover some of the damages that your company may be found responsible for. This may include third-party claims for medical bills and legal fees, all of which can be quite expensive, even when we’re talking about small mistakes.
Most of these losses will come from third-party property damage and injury claims. However, with General Liability insurance, you will also be covered in the case of advertising injury or reputational harm.
Calculate your risk
Risk changes from company to company. Small companies that do not operate a lot of machinery, and work in a relatively safe area of the industry, do not face as much risk as roofers for example, who will need more coverage. The process of calculating risk might seem complicated at first, but your insurance provider should guide you through the steps and help you pick the best coverage options for your business and budget.
Always make sure that you have the coverage you need
Some newer businesses will always be tempted to delay buying the coverage they need, but this can be a very bad idea. While you may not have an accident or any disputes for a while, you may end up blacklisted by other businesses, or lose clients, because you do not have insurance. After all, it makes sense – in the construction industry, liability claims can go into the millions of dollars. To avoid any big problems, it’s best to get insurance as quickly as possible.
Make use of extensions
While General Liability insurance offers ample coverage, there are some areas in which it does not. For example, if you have officers and directors in your company, their actions will not be covered against liability. So if one of your company’s officers is found liable for incorrect investment decisions, biased hiring, gross negligence, or unlawful acts, you will not be covered.
Other areas not covered by your construction General Liability Insurance protection include omissions and errors, intentional damage, and criminal prosecution. If these are risks that you believe you will face in the future, you can be safe by adding extensions to your original policy.
Is it time you bought construction General Liability Insurance protection?
Being uninsured or underinsured can be very dangerous for your contractor business. Lawsuits can come at you during, and even after a project. As such, you want to be as protected as possible at the best price. At Contractors Liability we offer the best-priced insurance packages for contractors. If you would like to find out more, contact us today at 866-225-1950.