A Complete Breakdown of Contractors Liability Insurance
I think there is one thing we can all agree on; it’s no snap of the fingers to get your contracting license. It takes a little time, and it differs from state to state as far as rules, regulations, and requirements. One thing is for sure though; Almost every single state in the U.S requires that you have Contractors Liability Insurance before getting your license or bidding on projects.
This can be called a few different things. The most common name for it is “General liability insurance”. No matter what it’s called though, if it has the word “liability” and “insurance” in it, then this is what’s being talked about.
Liability insurance, for contractors, is going to be one of the most important steps of getting your business up and running. Not only is it required, not having it would be extremely risky, and more than likely business ending.
General Liability Insurance For Contractors: What is it?
Liability insurance is a business (and life!…) saver. Liability insurance is exactly what it sounds like. It covers liabilities. The word “liabilities” can be a little confusing, and there can be quite a few of them in the contracting field. So, let’s go over them!
Let’s start off by saying the most important thing – this doesn’t cover your own employees. Employees that work for you are going to be covered by workers compensation insurance. Insurance covers injuries that occur for visitors or any other 3rd party that may get an injury.
This is one of the main reasons that general contractors liability insurance exists. When someone gets hurt while they are on your clock, liability coverage will not only pay any associated medical bills or funeral fees, but it will protect you from the all-too-common lawsuits that come with the territory of general contracting and people getting injured.
It’s a dog-eat-dog world out there. Competition getting fierce can be pretty common, but some of them take it to the next level and start claiming that you have done something to hurt their company, or non physically hurt the owner of it.
The claim, more often than not, is that you stole, duplicated, or used their advertising to benefit your own advertising campaign. Liability Insurance covers this risk. If someone does happen to start accusing you of such acts, you can be assured (or should I say, insured) that your contractors liability insurance will have it handled.
When it comes to construction, especially remodeling, claims of property damage are fairly common. General liability insurance for contractors is the surefire way to cover this issue.
Whether it be someone claiming that you did damage to their property, or someone claiming that they can’t use the building because of your work, liability insurance for contractors is going to be your safe haven. It will keep you protected not only financially in this case, but will also help you keep a peace of mind while working on projects.
This is exactly what it sounds like. Things that happen after a project or job is already finished. For example, if a handrail comes loose and causes injury to someone, your company could very well be held liable. Your general liability insurance for contractors, in this case, would be a lifesaver. Depending on your policy amount, it might even cover all damage and legal fees, leaving you with nothing to have to deal with.
Contractors Liability Insurance: Final Thoughts
With everything listed, it makes it pretty clear why contractors need to have this insurance coverage. As a contracting company, it’s almost impossible to not have a lawsuit at one point or another, so when it happens, be prepared for it.
If you don’t think you have the money yet to get the coverage, then don’t do anything until you do have the money. It’s better to wait and then keep your business running, than to try to get off cheaply, and not be in business very long.
If you are looking for a place to get general liability insurance, you can find it at most insurance companies around the country. A lot of them you can even get online. Check these out:
Now that you know that you need it, what it covers, and where to get it, go do it! Go get signed up today for your insurance policy so that you can continue on this road of running your own business!