Contractors General Liability
Most doctors and lawyers recognize the value of having liability insurance, but theirs are
not the only professions where such coverage is necessary. Just as liability insurance protects doctors and lawyers
in the event of a mistake that damages their patient or client, contractors general liability insurance
protects the contractor while they perform their responsibilities.
Contractors assume enormous responsibilities on any jobsite. They work to ensure a safe
environment for themselves and their employees, and they are dedicated to completing a high-quality construction
project. They may be building someone’s new home or place of business; it could be a school or a new theater.
Regardless, carrying liability insurance makes the pursuit of their business much easier.
Contractors General Liability Insurance - Why Do You Need It?
Contractors general liability insurance helps contain the costs of accidents and
errors on the work site. If anything which the contractor, or their employees, does on the site causes damage to
someone else’s property or injures a person, the contractor could easily be held financially responsible for the
problem. These can be very expensive situations, where the contractor needs to hire a lawyer, pay court costs, and
may even be required to provide remuneration to the victim.
If a claim is made, it will be investigated thoroughly, probably by attorneys for
each side of the situation. These types of investigations can go on for months, and may require the assistance of
experts. At this stage, the matter has not even gone to court, yet the costs are already mounting.
Contractors General Liability Insurance - What You Should Know
If the results of the investigation, and even perhaps the court case, find that
the contractor was at fault in the incident, then they will likely have to pay some kind of damages to the other
party. Without contractors general liability insurance, the contractor would be paying such costs out of their
pocket. This can have a devastating effect on the contractor’s finances and may even jeopardize the future of their
company and their ability to bid on subsequent projects.
With such insurance, the contractor’s financial obligations become easier to
bear. This insurance helps cover the cost of an attorney, any court fees that are levied, and any damages that have
been awarded. The insurance may even assist with lost wages and may compensate the contractor for lost time at
work. With this insurance, the contractor is able to get back to running their company and taking on new jobs
without undue fear of risk.