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Liability Insurance FAQ
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General Liability Insurance for Contractors

In most states, contractors are required to carry general liability insurance. Even where not required, purchasing a liability policy still makes good sense. General liability insurance for contractors covers any damage to property or bodily injury losses that is either caused by the contractor, or as a result of work they have done. Other items like poor workmanship and defective construction are not covered by liability insurance, but may be covered by other types of policies.

Most of these liability policies are tailored to fit the contractor’s business. There may be provisions made for contractors who typically work on multi-family homes or office spaces. The contractor and their insurance agent work together to devise coverage that provides the best possible protection for both the contractor and their clients. Premiums for such insurance policies are often expensive. However, being sued for liability issues is typically far more expensive.

General Liability Insurance for Contractors - Claims

When a party makes a liability claim against a contractor, they generally do so through an attorney. In order to respond sufficiently, the contractor must hire a lawyer of their own to ensure the protection of their rights. Most lawyers will require that they be paid a retainer fee before they begin work on the case. These fees can be large, and they are only the beginning. As attorney fees and court costs mount, so too does the stress the contractor feels. They may be distracted from their work, have difficulty sleeping at night, and unable to give their family the attention they deserve.

General liability insurance for contractors helps to take the edge off of a stressful situation. It may not solve the difficulty in itself, but liability insurance is indispensable in such a situation. The insurance policy can provide funds to hire an attorney, help cover court costs, and even reimburse the insured for lost wages.

General Liability Insurance for Contractors - Benefits

Considering that liability cases can often drag on for years, even when they don’t go to trial, having the right insurance can make a huge difference. Without it, the contractor may be paying attorney fees and court costs out of their own pocket. If they have such insurance, however, they can rest easier, knowing their personal assets are safeguarded.

General liability insurance for contractors can make all the difference in the world in the event that a claim is made. It helps pay the bills, and allows the contractor to continue with business as usual.