Facts About General Liability Insurance for Contractors
Is your General Liability Insurance for contractors enough to cover your small business in the event of any of the following?
1. Mistakes made by contractors
The risks for mistakes are high on the construction site. One of the causes of this is the fact that construction drawings and designs are often provisional, and therefore subject to changes as per the conditions on site. In the process of effecting such changes, mistakes are likely to occur. But this is not the only cause.
For instance, an electrical contractor may accidentally cause electrical failure on an entire floor of a commercial building. This could be as a result of mistakes in electrical wiring in the process of installing a new air conditioning system. Are you covered by General Liability Insurance for contractors? Your Contractor General Liability Insurance will cover damages to the property.
It is important to get an insurance package that covers retroactive claims, since clients may sometimes sue long after works have been completed.
2. Accidents on job sites
Construction sites are high-risk areas for accidents. Therefore any accidents that occur may result in bodily injury or property damage. These often have high-cost implications for small business contractors.
It is important to note that your contractors General Liability Insurance covers third party issues, but not employees. The law requires that the contractors and sub-contractors have Workers Compensation. This covers medical bills, lost profits, rehabilitation costs, disabilities, and in extreme cases, death benefits.
For example, a painter in the process of painting a high wall may accidentally fall from a ladder. Consequently they fracture their hip bone and spill lots of paint on a carpeted floor. The right General Liability Insurance will cover the property damage. Workers Compensation will cover both the medical costs for bodily injury and temporary disability, lost wages.
3. Negligence and alleged negligence
When any form of negligence on your construction site results in injury to the neighboring community or any third parties, lawsuits may ensue. Your insurance program should, therefore, have coverage for the implications as a result of negligence, inclusive of third-party claims and legal fees.
Negligence, for instance, may occur when a plumber, in the process of installing new plumbing pipes, fails to perform a check for other existing plumbing pipes. They drill into water supply pipes and cause flooding to both the client’s property and the neighbor’s property.
Your contractors General Liability Insurance does not cover professional mistakes. Errors and Omissions Insurance or Professional Liability Insurance should be added to your insurance program. It insures against mishaps that may occur when you offer your opinion, service or recommendations in the course of business.
Risk mitigation for contractors
General Liability Insurance for contractors helps with risk management by providing financial cover against all high-probability risks that go hand-in-hand with the activities of your business. Find out more about General Liability Insurance for contractors from the experts at Contractors Liability. Call us at (866) 225-1950.