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Liability Insurance FAQ
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Contractors General Liability Insurance

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.