Contractor general liability insurance is essential business insurance coverage for construction companies and tradespeople. It can protect your profits against third-party accidents or injuries.
What Does General Liability Insurance Cover for Contractors?
- Contractor general liability provides coverage against third-party injuries and medical costs.
- Contractor general liability provides coverage for third-party property damage.
- General liability insurance also covers advertising injuries.
Third-Party Injuries and Medical Payments
Business owners know that third-party injuries are a risk inherent to all industries. However, construction sites have particular hazards that can increase the risk of injury.
Curious neighbors (or neighborhood kids), homeowners eager to see progress, and people walking or jogging past your site can all be at risk from the hazards on a site.
If a third-party injury does occur, general liability insurance is designed to protect you against the high costs of medical payments and bodily injury claims.
Third-Party Property Damages
If your work, products, or employee activities resulted in property damage, then contractor general liability is the policy designed to cover these claims.
Property damage liability coverage can help pay for repair or replacement costs if your business damages someone else's belongings.
Third-Party Advertising Injuries
Your advertising activities may not seem like a risky business, but promoting your business could result in claims for advertising injuries, including copyright infringement, false advertising, libel, or slander.
You may not have known that your logo was too similar to one that was previously trademarked, that your print ad used a photo protected by copyright, or that your competitor would view your social media post as defamatory.
Even if you didn't intend any malice, oversight in these areas could lead to advertising injury claims.
How Does Contractor General Liability Insurance Work?
Contractor general liability insurance covers expenses for third-party injuries and property damage up to the limit listed on your policy's declaration page, including:
- Medical expenses
- Repair and replacement of property damage
- Legal fees
- Settlements or judgments
- Court fees
How Much Does Contractor General Liability Insurance Cost?
The cost of general liability insurance for contractors will be based on a number of factors, such as the type of work you do, the size of your business, the number of employees, and your claims history. To get a quote on contractor general liability insurance, contact a trusted commercial insurance professional.