Contractor General Liability Insurance
Contractor general liability insurance protects construction workers, electricians, plumbers and other contractors against lawsuits due to bodily injury or property loss. In these high-risk fields, injuries and property damage are not uncommon. At the same time, the rate of lawsuits against contractors and businesses has been increasing. In order to protect yourself against severe financial losses, secure your operations with contractor general liability coverage.
Finding affordable contractor general liability insurance can be quick and convenient when you have access to the internet. Use this website to learn about your liability insurance requirements and compare quotes from several contractor general liability insurance providers. With a little research, you can make an informed decision about the type of coverage that meets your needs in your line of work.
Reasons for Liability Insurance
Commercial or residential contractors and subcontractors require general liability insurance in order to perform their jobs safely. Home builders, highway and road repairmen, carpenters, electricians, painters and paper hangers and a variety of other tradesmen are covered under these policies. Working at a job can be dangerous enough without the additional hazards of being sued by passersby, subcontractors or customers at a place of business. This is why comprehensive liability insurance coverage is beneficial in so many ways.
If you have employees working for you on a job site, you may be held liable for injuries if the work area is determined to be unsafe, if equipment malfunctions or if another employee makes a dangerous error. If you're working in a storefront or a retail center and a customer trips over a piece of equipment or debris that you've left behind, you could be held responsible for bodily harm. Contractor general liability insurance pays for the costs of your legal defense if you're involved in a lawsuit, plus any damages that are awarded to the injured party.
An explosion or other disaster at a site could result in widespread injuries to bystanders. As a contractor, you can't afford to be financially liable for injuries or damages on a large scale. Securing your small business with general liability insurance can ease your fears about accidents that could ruin your financial future.
Requirements for Doing Business
In order to perform a job as a contractor in many lines of work, such as construction, you must have proof of contractor general liability insurance. Your certificate of insurance serves as your proof before you start the job or when you're on the site. In some cases, you may need proof that you have contractor general liability insurance before you can make a bid.
If you're a contractor working in a field that has an exceptionally high level of risk, consider an umbrella plan to extend your contractor general liability insurance. Every policy has a maximum limit that the insurer will pay to cover your legal costs and damages. If damages exceed that maximum, you would be held financially responsible for the remaining amount. An umbrella plan takes over at this point to cover the difference.
Payment schedules for your coverage may vary depending on the provider. Many providers will ask you to pay an initial deposit, with additional monthly premiums. Job-specific policies may be available in some cases. Keeping your protection current ensures that you'll be secure as you perform your work.
Practicing General Job Safety
Working as a contractor without general liability insurance doesn't make sense financially. There are other measures you can take as a general contractor to make your business safer and reduce the number of claims that you file. By cutting down on your claims, you may qualify for discounts on your contractor general liability insurance coverage.
As a policy holder, you may qualify for the loss control programs that most insurers provide. Loss control may involve reviewing your business's practices for safety and risk management. On-site training and educational materials are also provided by many companies that administer policies. Take advantage of these programs to reduce your risks at work and keep the costs of insuring your business at a manageable level.
No matter what type of service you provide, you'll encounter risks as you operate machinery, make structural modifications or perform other routine tasks. Practicing strict quality control at your sites will lower your chances of accidents and help you maintain a safer work environment for subcontractors or employees. Keep thorough records of any incidents, including eye-witness reports and photographs, if possible. If an incident occurs, contact your adjuster immediately. Detailed information will help your claims adjuster process your claim more smoothly.
Contractor general liability insurance is one of the necessary costs of doing business in this litigious age. Don't let your fears about the financial consequences of a lawsuit get in the way of your work. Talk with a specialist about securing the protection you need to complete your jobs in the safest way possible.