A Beginners Guide to General Liability Insurance For Contractors

A Beginners Guide to General Liability Insurance for Contractors provides an overview of general liability (also known as business liability) coverage as it relates to contracting. This article briefly outlines the three different types of general liability coverage that are included in the coverage. Next, I discuss the various benefits that may be available to a contractor by purchasing this coverage. Finally, I discuss how to get started purchasing general liability coverage.

The three basic types of general contractors insurance  are: property, liability, and workman's compensation. The property aspect of liability insurance protects contractors against property damage or injury sustained while on the job. The property aspect will cover general liability perils such as falling from the sky, damaging the property of others, or other catastrophic acts. In addition, the property portion of liability insurance will cover the cost of repairing the property that was damaged or destroyed.

Another type of general liability insurance for contractors is workman's compensation. Workman's compensation protects contractors from wage losses incurred due to on the job injuries. For instance, if a contractor burns his hand on a woodworking project because he was working with too much wood and/or using bad equipment, the contractor will be eligible for workman's compensation. If a worker is killed on the job, the family of the deceased may obtain worker's compensation benefits. The benefits will be provided to the widow and children of the deceased worker.

When shopping around for coverage for contractors, it is important to understand the difference between property and liability coverage. Property coverage protects a contractor against liability claims on property owned by the contractor. Liability, on the other hand, protects a contractor from claims made by customers or other individuals that come into contact with their products or work at a job site.

A basic liability insurance policy typically covers liability for property damage, bodily injury, property destruction, and advertising claims. However, it is possible for a contractor to include additional types of claims in their liability insurance policy. These additional types of claims are usually considered speculative under state law. If a contractor does not have coverage that meets the state's requirements, they may wish to discuss liability insurance with an insurance agent.

Before purchasing any type of insurance policy it is important that a contractor understand all of the policy limitations. In particular, every insurer will exclude certain risks from their insurance policies. A beginners guide to general liability insurance for contractors can help a contractor understand the exclusion guidelines of each policy that they are considering. Additionally, each insurer will have their own terms and conditions that must be followed when filing a claim.

Abeginners guides that focus on general liability insurance for contractors provide many resources and examples that a contractor can use to decide whether an insurance policy is right for them. While every contractor should consider general liability insurance, it is often more cost effective to purchase this type of insurance during the construction process. In many cases, it is unnecessary to purchase insurance if a contractor already has adequate insurance coverage through their employer. It is also important for contractors to remember that they are covered under their personal life and health insurance policy at the same time. Therefore, it is not necessary to purchase two separate insurance policies for a contractor. 

Need a general contractor insurance? Call us now (702) 832-0220