A standard general liability (GL) commercial policy will protect you against claims made for property damage, bodily injury, products, completed operations, advertising, and personal injury. Today, we’re specifically addressing the need for GL insurance for roofers, remodelers, and other types of contractors in the construction world.
Why Contractors Need General Liability Insurance
If you’re a commercial contractor of any kind, you understand the risks involved in the work you perform for your clients. Accidents can happen. Workers can make mistakes. People can trip, slip, and fall while meandering through the worksite. Equipment can malfunction, cause property damage, and lead to injury.
If you or one of your workers is at fault for any type of accident that occurs on the worksite, you could be held financially responsible. In some situations, lawsuits and medical bills can end up costing tens—if not hundreds—of thousands of dollars to settle. If you can’t afford to pay for those kinds of costs out of pocket, you need insurance as a safety net.
Not only is general liability insurance smart for contractors and subcontractors to have before working on any type of construction project, but it’s also required for some jobs. Good GL insurance will help protect you, your assets, and your employees against third-party claims.
General Liability Insurance Coverage
If a third party (someone other than an employer or employee) sustains an injury on your worksite and files a claim against you, GL will have your back. Your policy should cover medical expenses, court-related costs, and funerals (worst-case scenario).
If anyone from your company makes a mistake and causes damage to your client’s property, GL will help cover claims and lawsuits.
Products and Completed Operations
Even after the job is complete, you may still be held responsible for injuries and damages due to negligence or improper installation. Let’s say a product you installed falls out of the wall and hurts someone. It would be considered your company’s fault. Make sure your GL insurance policy covers you for as long as you may need it—not just until you complete a project.
Advertising and Personal Injury
If you build something with a design that’s too close to someone else’s, or if you use a photo that you don’t have rights to, you could be sued for copyright infringement. You could also have a lawsuit on your hands if you use slander, libel, or make false claims in any of your advertising or marketing—even if by mistake.
Be mindful of how you represent yourself on social media, your website, blog, advertising, etc. Even the smallest mistake could result in a non-physical claim being brought against you. This is another reason you need GL insurance. It will protect you in the digital space as well as the physical.
GL insurance does not cover things like employee work-related injuries or illnesses; you’ll need workers’ compensation for that. It won’t cover damage to your business property, either (but commercial property insurance will).
If you need more extensive coverage than standard GL insurance provides, you could add endorsements to enhance your policy. Ask your insurance agent about protection against fire damage, cyberattacks, employment practices, builders risk for new construction, or any other areas of concern within your business.
Just like any type of insurance, the cost of general liability insurance will depend on different factors, including the size and type of your business, your location, the number of employees you have, and your customer base. The more risks involved in the type of work you do, the more it will cost to buy comprehensive coverage.
Get a Quote for General Liability Insurance
Whether your business is responsible for a small property damage claim or a large, expensive lawsuit, general liability insurance can protect you. Make sure you’re covered before you begin your next construction project so you’re prepared for anything that comes along. Request a quote for general liability, commercial property, worker’s compensation, or another type of business insurance.