General liability insurance, is called a number of different things ranging from Contractors Liability Insurance, business liability insurance or commercial liability insurance. Whatever you call it General Liability Insurance provides coverage for your business against claims of the following types of losses. You also need to make sure it contains coverage for completed products coverage also known as completed operations coverage.
- Claims for bodily injury. If your work or business causes injury to a customer or third party you have coverage. A couple examples of this type of claim would be a customer slips on a wet floor at your office breaking her wrist or you are a mason and a brick falls from the job site injuring a third party walking below.
- Damage to property. This is similar to bodily injury. If you damage a customer’s or third party’s property. An example would be if you are a roofing contractor and materials blow off the roof damaging a car.
- Personal and Advertising injury. Personal injury is different than insurance for Bodily Injury or property damage liability. It covers you from the liability for financial damages that result from libel, slander, wrongful eviction or false arrest, or violating one’s right to privacy. These claims can arise from a employee bad mouthing your competitors to prospective clients or advertising injuries may result from making false claims about the effectiveness of a product or services
- Medical Payments to others. This is a no fault coverage. This means that no fault has to be proven for payment. It is designed as a show of goodwill in case someone is injured. It is usually $5,000.
- Completed Products/Operations Coverage. This is a major Part of General Liability for Contractors. What exactly is Completed Products/Operations coverage. Say you’ve just finished installing a new water heater for a client. But there is a problem. The vent pipe is not properly sealed, which causes rain to penetrate the structure. The moisture begins to rot the ceiling of your customer’s property.
In this situation, the customer can sue your business for failure to deliver the goods it promised. You could face a lawsuit for damages over rotted floors, repair costs, and other financial losses. However, if you have Contractor’s General Liability Insurance, your Completed Products/Operations Coverage will cover you for the cost of any lawsuit and the damages the court rules you owe the customer.
No matter what type of construction or installation business you run, Completed Products/Operations coverage can protect you from lawsuits over the work you complete. Roofing insurance can cover lawsuits improper installation and water damage. Plumbing professionals can be insured for pipe leaks and drainage issues.
General Liability Insurance is not the only policy you will need. It is a good starting point but it does cover many of your company’s largest risks, effectively shielding you from lawsuits that could put you out business.
What General Liability insurance policy does not cover?
We want our clients at ContractorsLiability.Com to understand your General Liability insurance policy. Below is a summary of some of the important exclusions regarding General Liability Insurance coverage. For complete details of all the exclusions, please read the policy wording or ask your agent.
- Use of Vehicles. Almost all contractors use vehicles in the scope of their work. Whether it is a large truck or just a regular car, you use your vehicle to transport tools and materials to various job sites. To be properly insured you need to have Commercial Auto Insurance. If you only have personal auto coverage your claim may be denied if you were using your vehicle for work related activities when claim arose.
- Your Property. Your tools and equipment are not covered by your General Liability Insurance policy from loss or theft. So if your tools or equipment are stolen or destroyed by fire for example you have no coverage. If you want your tools and equipment covered you need to purchase a separate policy. This type of insurance that covers tools and equipment is called Inland Marine Insurance. Ask your agent for a quote if you want this coverage.
- Injuries To Employee’s. General Liability Insurance only covers injuries to third parties. If you have employees most States require you to have Workers Compensation Insurance. This covers your employee and your business in case there is an accident. In most States if you fail to have this coverage you open your business up large fines and possible criminal penalties. Here is where you can find requirements of YOUR STATE.
- Professional Services. If you provide design work and other professional services you may need what is more commonly known as errors and omissions insurance. This is a special type of coverage that protects your company against claims that a professional service you provided caused your client to suffer financial harm due to errors on your part or because you failed to perform some service.
Stop worrying about your coverage. You will have peace of mind with working with ContractorsLiability.com. We take the stress out of finding the right insurance coverage for you so you can focus on starting your business. It’s easy! Once you enter your information for a quote, we automatically find the best and most affordable contractors insurance to meet your needs. We provide same day service, so you can get insured fast.
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If you are serious about your personal and business goals we are the insurance organization you want to do business with. You can depend on ContractorsLiability.com to listen, understand, and deliver you the best insurance coverage and customer service possible.
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