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✔️ General Contractor Liability Insurance Necessary Coverages
✔️ General Liability Insurance for Independent Contractors
✔️ Does General Liability Insurance Cover Your Work
General Contractor Liability Insurance
General contractor liability insurance is an insurance protection that protects general contractors and contracting companies from unexpected accidents and events. Having this protection ensures that your company is able to continue operating prosperously, even if it faces a liability lawsuit or gets a judgment levied against it. Without this coverage, your company could face bankruptcy when something happens.
What's Covered
Bodily Injury: Customer unexpectedly shows up to inspect the work being done on their property. While touring the site with them, they accidentally trip over some leftover construction materials left by your crew, which leads to them breaking their ankle.
This unfortunate incident escalates into an issue as the client demands that you take responsibility, for their medical expenses and also compensate them for the income they will lose during their recovery period. If you don't have liability insurance in place for your business operations and face costs like medical expenses or legal fees due to accidents or mishaps on your premises or during work activities; you'll have to bear the financial burden out of your own pocket.
What's Covered
Property Damage: Your worker accidentally bumps a ladder into a custom chandelier, that shatters into countless pieces, much to the dismay of the homeowner who is understandably upset about it all happening right in front of their eyes. The replacement cost for the chandelier runs high. Reaching well into the thousands of dollars mark!
Without the safety net of General Contractor Liability Insurance in place to cover mishaps like this one with the chandelier incident in our example here. You would be looking at a significant financial hit straight, out of your business funds. Fortunately for you, with insurance coverage in place, the policy ensures that the expense of replacing the chandelier is taken care of.
How Much Is General Contractor Liability Insurance?
The cost of General Contractor Liability Insurance depends on several factors, including:
- Where your business is located (city and state)
- The number of employees you have
- Your coverage limits and deductibles
- Your claim history with other insurance policies
Premiums for general contractors typically range from $799 to several thousand dollars annually, depending on the size and scope of your business. Higher-risk areas or larger projects usually lead to higher insurance rates.