There’s a lot of outdated insurance information on the Internet. Here’s what you should know about Contractors Liability Insurance 2020.
The right insurance policy will help protect you and your company from the unexpected costs of running a business. Without proper insurance, you run the risk of accidents and lawsuits resulting in unanticipated financial costs that could potentially bankrupt you.
Contractors Liability Insurance or General Liability Insurance, is key to ensuring your business’s success.
What does Contractors Liability 2020 include?
Also known as General Liability Insurance, this type of insurance helps protect you and your business in the case of harm to a client or a third party and resulting claims for damages. It covers the following:
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Bodily injury
If your business causes physical harm to a third party or a client, General Liability Insurance helps protect you. For example, a client accidentally steps on an exposed nail at the job site and injures themselves.
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Property damage
As a General Contractor, you are often working at a third-party property, such as a client’s home. Tools involved in construction work can accidentally damage items on the property.
For example, while moving furniture to lay down flooring, you may accidentally scratch a valuable piece of furniture. Property damage insurance helps protect you from lawsuits related to this.
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Completed products claim
General Liability Insurance can also help pay for claims related to services that you have already completed and the products you have installed. For example, if you install a sink that breaks and damages the flooring, your insurance will protect you against liability claims.
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Reputational harm and advertising mistakes
General Liability Insurance will help protect your business against reputational harm claims, such as libel or slander. It also covers you in the case of advertisement mistakes caused by copyright infringement.
How will insurance help you stay in business?
Insurance is key to making sure that your business prospers. Keep these tips in mind when considering insurance for your business:
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Government laws
Most states in the US require businesses in high-risk industries, like construction, to have insurance policies to operate legally. Even if the state does not have a policy in place, many local municipalities and cities do.
For example, Illinois does not have state license requirements for General Contractors. However, Chicago has specific requirements for contractors, including minimum insurance requirements. We advise you to investigate your state’s requirements when it comes to Contractors Liability Insurance in 2020.
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Legal liability
In the case of a claim, insurance can help protect your business from financial harm. According to analysis reports of small business claims reputational harm claims cost $50,000 on average — and this was way back in 2015! Imagine how high it is today!
If such a claim involves a lawsuit, the average claim increases to $75,000. Without insurance, this cost would come directly out of your pocket. By having General Liability Insurance in place, it helps protect your business from financial damage.
Protect your business reputation
One of the most critical factors for any business is its reputation. Bad standing or a bad review can result in severe damage to your business. By correctly insuring your business, you show that you are concerned about your clients’ safety and property, helping you gain a better name for yourself and your business.
Contractors Liability Insurance 2020
How can you apply for Property Damage insurance for protection against expensive third-party claims?
For the most comprehensive Contractors Liability Insurance 2020 advice, discuss your options with an agent from Contractors Liability Insurance Company at 866-225-1950.
