General liability insurance for contractors. What is general liability insurance for contractors?
General liability insurance for contractors introduction
The smooth running of any business requires the peace of mind which is offered by general liability insurance. In this case, contractors and construction businesses need adequate protection as they face many risks.
Whether you're meeting with clients on your business premises or working on a client's home, general liability insurance has you covered.
Contractor insurance protects businesses from risks while they do their job, from major reconstruction projects to minor renovations.
To be adequately covered, a contractor should have general public liability, workers' compensation, and other coverages that we will highlight in this article.
Our article will examine the following topics:
- What is general liability insurance for contractors?
- Who needs general liability insurance for contractors?
- What types of contractors need general liability insurance?
- What does general liability insurance cover for contractors?
- Libel and slander
- Product liability
- Customer injuries
- Customer property damage
- Additional liability insurance coverage for contractors
- Commercial property insurance
- Data breach insurance
- Business income insurance
- Workers’ compensation insurance
- Are contractors required to have insurance?
- Key takeaways
- General liability insurance for contractors cost
- General liability insurance for contractors quotes
- Contractors insurance USA
- Contractors insurance UK
- Contractors insurance Cyprus.
What is general liability insurance for contractors?
Contractors insurance is an umbrella term that encompasses various business insurance coverages required from a contractor.
Furthermore, contractors insurance might include general liability insurance specifically for contractors.
General liability insurance for contractors and contractor businesses helps protect businesses from claims caused by bodily injuries or damage to someone else's property.
Without general liability insurance for contractors or business liability insurance, business owners would have to cover the costs for certain liability claims.
Overall, general liability insurance for contractors is coverage that protects businesses from financial debts that can result from serious work-related accidents.
In other words, this type of insurance policy protects your business in case of injuries you sustain while working, damage to your equipment, lawsuits, and more.
General liability insurance is a vital coverage type for many types of business owners, as this insurance will help protect your business if an unexpected issue occurs.
First things first, you may need to know if your business requires contractors' insurance.
Who needs general liability insurance for contractors?
As a business entity, you may be required to have general liability insurance for contractors coverage, either by law or by a company that hires you.
This coverage includes protection for your business' assets and, if you have any, to cover your employees.
What types of contractors need general liability insurance?
The following contractors, tradespeople and construction businesses may require general liability insurance coverage:
- General contractors, concrete contractors, masonry contractors, excavation contractors, paving contractors, and drywall contractors
- Roofers, plumbers, welders, carpenters, painters, landscapers, electricians, repair technicians, and home inspectors
- Removal businesses, snow and ice removal businesses, interior and exterior construction businesses, and tree surgeons.
As noted earlier, general liability insurance not only protects your business and assets, but many employers often require this insurance before they agree to work with your business.
Depending on the project or type of construction you are carrying out, your local authorities may also require that you meet general liability insurance requirements.
The right coverage ensures protection for your business and your employees, so it's essential to understand the different types of contractor insurance.
What does general liability insurance cover for contractors?
Different risks should come with different insurance plans, and most contractors need several business insurance policies.
The good news is this task can be hassle-free because it's possible to buy insurance coverages together from the same insurance company.
General liability covers common risks, from handymen to general contractors, as both contractors and construction businesses face high risks.
General liability insurance overall helps to pay expenses related to third-party injuries and property damage.
For example, if your client is injured at your business property or if property damage occurs at a client's home, general liability insurance can cover medical expenses or the cost of repairs.
General liability insurance policies provide liability coverage related to the following:
- Libel and slander
- Product liability
- Customer injuries
- Customer property damage
We have listed how these coverages protect your business below.
Libel and slander
While advertising your business and its construction services, it's possible libel and slander claims may be made.
In the case a business inadvertently copies a competitor's slogan or mimics an advertising campaign, these accidental advertising injuries will be covered by general liability insurance:
- Copyright infringement
- Defamation, both libel (written) and slander (spoken)
Product liability insurance
Construction businesses and contractors should include product liability insurance in their general liability policy, also known as products-completed operations coverage.
This insurance would ensure protection if your business caused a bodily injury or property damage due to faulty workmanship after completing a job.
For example, say a roofer repairs a roof and uses new tiles. One month later, the homeowner discovered some new tiles had fallen from the roof and damages had been caused to the property. This coverage will help pay the roofer's legal costs if the homeowner files a lawsuit over the faulty installation.
Take for example, a client trips over a ladder while you're doing work in their home, you could be blamed for the injury. If the person sues your business, you could end up paying for medical and legal expenses.
General liability insurance will cover:
- Medical bills.
- Attorney fees.
- Court-ordered judgments.
- Funeral expenses in fatal incidents.
Please note, this policy does not cover employee injuries. For employee injuries you will need to purchase workers' compensation insurance.
Customer property damage
General liability insurance safeguards small businesses from costly expenses when client property is damaged.
For example, if a client's floor is damaged during renovation work, your general liability policy could help pay for the cost of repairs.
This policy can also cover lawsuits expenses should they arise if a client decides to take you to court over the damaged property.
Additional liability insurance coverage for contractors
As mentioned earlier, a general liability insurance policy is just one part of contractor insurance.
To have comprehensive coverage you should consider getting additional types of business insurance.
Some types of coverage you can get include:
Commercial property insurance
This protects the building and equipment you use to operate your business, whether yours or your business rents them. This includes:
- Power equiptment.
- Heavy equiptment.
Data breach insurance
This insurance coverage type helps you to respond to a breach if your personal business information gets misplaced or stolen. This coverage type is sometimes known as cyber insurance.
Business income insurance
This coverage covers loss of income. In the event you can't run your business because of property damage, business income insurance may help to cover the loss of your business income.
Workers' compensation insurance
If your employees have a work-related injury or illness, workers' compensation insurance will help to cover the costs. Also known as "workers' comp", this coverage can help cover employees' medical expenses. Those are benefits to help them recover and return to work.
Are contractors required to have insurance?
The law may not require business insurance, but without general liability contractors insurance and other coverages, you could be held liable for mistakes you made on the job.
In addition to this, you may be required to show proof of insurance before taking on a job.
Generally speaking, it's a good idea for you to consider this insurance as a requirement for your business, as it's better to be safe than sorry.
To summarize, your business insurance will protect you if you need to cover expenses and damages. You are usually required to show insurance to clients and those who hire you, even if the law may not require that same insurance.
General liability insurance for contractors is vital for protecting your business should unexpected emergencies, accidents, or damages occur.
With general liability insurance, you can have the peace of mind that any injuries or damages suffered by your business will be covered.
For your business and employees, that means you can get back to work without that uncertainty playing on your mind. You can feel confident you're offering your clients a high level of service.
Overall, general liability for contractors coverage ensures that uncertainties and the associated risks of running your business are taken care of.
If you're considering contractor insurance for your business, it's worth knowing what affects insurance costs to understand your options.
General liability insurance for contractors cost
General liability insurance costs are as varied as businesses are.
Your general liability insurance policy reflects your unique business - no two business policies should be alike.
Insurance companies look at different factors when determining general liability insurance costs.
When you are considering your business expenses to meet insurance costs, you need to look at the following factors:
The value of your insurance policy depends on the following variables:
a)Type of project and type of business you own
- Contracting businesses may face more risk compared to other businesses. So, your rate may be higher.
- The number of employees - the more workers you have, the higher the risk level.
b)Location of the project
Areas with higher crime rates can cause your costs to increase.
c)Value of the project
d)The scope of contract works (i.e. construction, removal of debris)
e)Required coverage amount per coverage (i.e. accidental death, bodily injury, physical damages etc.)
- Policy details, like coverage limits and deductibles. More coverage and a lower deductible can increase rates.
- Your claims history affects the costs - clean histories can result in lower costs.
g)Contractor’s relevant experience in this type of project
- Your experience affects general liability insurance costs, dependent on how long you’ve been in operation.
h)Use of subcontractors in the project, the surrounding areas (i.e. rivers, sea, forest, etc.).
As mentioned, whether you need insurance for a large construction project or small renovations for your home, contractor insurance can ensure you're covered.
It's simple to sign up for contractor insurance and obtain a free quote today.
General liability insurance for contractors quotes
When considering what types of General liability insurance for contractors are needed for your business, it's important to do your research and receive various quotes to know your options.
The following can provide you with hassle-free quotes while offering you high quality service:
Contractors insurance USA
For companies registered in USA you can receive quotation from Progressive Commercial.
Contractors insurance UK
For companies registered in UK you can receive quotation from Simply Business.
Contractors insurance Cyprus
For companies registered in Cyprus you can receive quotation from Pitsas Insurances by completing the quotation.
Our team of insurance experts can work with your financial budget to help you secure customized commercial general liability insurance and other contractor coverage policies.