General Contractor Liability
Contractors should seriously consider purchasing general contractor liability
insurance. Having such insurance may mean that the insured contractor’s bid gets preference over an uninsured
contractor’s bid. Why? Because the insured contractor is covered in the event of damage to property or an injury.
Purchasing such insurance is simply a responsible way of doing business, one that pays for itself if the contractor
Any business involves risk, and the work of the contractor is no exception. From workplace
accidents to allegations of shoddy work, the contractor is never immune from claims for damages. Even contractors
who are experienced, careful, and provide high quality work can at some point find themselves the subject of a
lawsuit. Even if they are eventually cleared of all charges, the costs of a court case can be enormous and they can
have a distressingly harmful effect on the success of the contractor’s business.
General Contractor Liability Insurance - Thinking Ahead
With general contractor liability insurance, the contractor is covered under a
number of circumstances. Whether damage or injury is caused by the contractor’s work, their employees, or their
equipment, this insurance provides a financial safeguard that just may help keep the contractor’s company afloat
during a singularly difficult time.
Any lawsuit, even if it never goes to trial, is very expensive. With the proper
insurance coverage, contractors are able to hire the legal counsel they need to defend them and their
reputation. They can pay the attorney fees and court costs and even hire expert witnesses to provide testimony, if
necessary. This coverage also enables the contractor to pay any damage that they may owe without having to endanger
the financial stability of the contractor’s company. Essentially, this type of liability insurance provides the
peace of mind necessary for the contractor to provide their best possible work.
General Contractor Liability Insurance Coverage
The state in which the contractor operates may dictate the minimum liability
insurance coverage they have. In most cases, it is wise to purchase at least this much general contractor liability
insurance, but it may also be advisable to purchase coverage that expands on those limits. An insurance agent can
best answer questions about specific requirements in order to recommend the best possible coverage.
This type of insurance is not an extraneous expense, even if it never gets used.
It’s actually an indispensable component of responsible business practice, one that can save the contractor’s
company in the event of an accident or error.