Contractors General Liability Insurance: What Does It Cover?

If you are a contractor, it is important to have general liability insurance. This type of insurance protects you if someone is injured or their property is damaged while you are working on a project. In this blog post, we will discuss what general liability insurance covers and what it means for your business.

General liability insurance typically covers medical expenses, legal fees, and property damage costs. This means that if a client or another individual is injured while you are working on their property, your insurance can cover the medical bills and any legal fees that may arise from the incident. Likewise, if your work accidentally causes damage to someone’s property, your insurance can cover the cost of repairs.

Do Independent Contractors Need Liability Insurance?

Having general liability insurance can protect your business from unexpected and potentially costly incidents. It also shows potential clients that you are a responsible, professional contractor who takes the necessary steps to protect themselves and their property. This can give your business an added level of credibility and trustworthiness, making it more likely for potential clients to hire you. In some cases, clients may even require proof of insurance before hiring you for a project.

Can an independent contractor be held liable for damages?

As a contractor, you can still be held liable for damages even if you have liability insurance. The insurance may cover the expenses, but it is ultimately your responsibility to prevent accidents and protect individuals and property while on the job. It is important to follow all safety protocols and complete projects to the best of your ability to minimize the risk of being held liable for any damages. In summary, having general liability insurance as a contractor can protect your business from unexpected incidents and demonstrate professionalism to potential clients.

What Does Contractors General Liability Insurance Cover?

While general liability insurance covers a wide range of incidents, there are certain exclusions to the coverage. These can include acts of negligence or intentional harm, contractual liabilities, and employee-related injuries (which would be covered by worker’s compensation insurance). Overall, having general liability insurance can provide peace of mind for both you and your clients. Top small business insurance companieshelp protect your business from unexpected incidents and shows clients that you take the necessary steps to ensure their safety. If you are a contractor, consider investing in general liability insurance for your business.

Other Insurances Contractors Need

Along with general liability insurance, top small business insurance companies also offer other insurance like.

  • Commercial Auto: Coverage for work vehicles or cars used to deliver tools and other contractor goods. You can choose to include attached equipment such as ladder racks and permanently installed tool bins in your coverage. Individual tools and materials are often not covered by this policy.
  • Business Owners Policy (BOP): Contractors’ liability and private property and commercial construction coverage are combined into single insurance.
  • Workers’ Compensation: Provides coverage if your workers become ill or injured while working.

Overall, having contractors’ general liability insurance is important for the safety and success of your business. Make sure to research different policies and find one that fits the needs of your specific contracting work.