General Liability Insurance Contractors: Protecting Your Business

When you’re a contractor, you face a lot of risks on a daily basis. You’re working in potentially dangerous environments, handling heavy machinery, and dealing with clients who may not always be happy with your work. That’s why it’s essential to have general liability insurance. This type of insurance protects your business from a variety of risks and liabilities, including property damage, bodily injury, and more.

What Is General Liability Insurance?

General liability insurance is a type of insurance that protects your business from a variety of risks and liabilities. This type of insurance typically covers property damage, bodily injury, personal injury, and advertising injury. It’s often referred to as “slip and fall insurance” because it covers accidents that occur on your business premises. In addition to protecting your business, general liability insurance can also protect your employees, customers, and suppliers.

There are a few key things to keep in mind when it comes to general liability insurance:

Why Do Contractors Need General Liability Insurance?

As a contractor, you face a variety of risks and liabilities. For example, you could be held liable for property damage or bodily injury that occurs on a job site. You could also be sued for advertising injury or personal injury. Without general liability insurance, you would be responsible for paying these costs out of pocket, which could be financially devastating for your business. General liability insurance also gives your clients peace of mind, knowing that you’re insured and can cover any damages that may occur.

What Risks Do Contractors Face?

As a contractor, you face a wide range of risks and liabilities. Here are a few examples:

• Property damage: You could accidentally damage a client’s property while working on a project.
• Bodily injury: You or one of your employees could accidentally injure someone while working on a job site.
• Advertising injury: You could be sued for defamation or copyright infringement related to your advertising.
• Personal injury: A client or supplier could be injured while visiting your business premises.

How Can General Liability Insurance Protect Contractors?

General liability insurance can protect contractors from a variety of risks and liabilities. Here are a few examples:

• Property damage: If you accidentally damage a client’s property while working on a project, your general liability insurance can cover the cost of repairs or replacement.
• Bodily injury: If you or one of your employees injures someone while working on a job site, your general liability insurance can cover medical expenses, lost wages, and other costs associated with the injury.
• Advertising injury: If you’re sued for defamation or copyright infringement related to your advertising, your general liability insurance can cover the cost of legal fees and damages.
• Personal injury: If someone is injured while visiting your business premises, your general liability insurance can cover medical expenses and other costs associated with the injury.

What Doesn’t General Liability Insurance Cover?

While general liability insurance covers a wide range of risks and liabilities, there are a few things it doesn’t cover:

• Intentional harm: If you intentionally harm someone or damage someone’s property, your general liability insurance won’t cover the cost of damages.
• Employee injuries: If one of your employees is injured on the job, their medical expenses and lost wages will be covered by workers’ compensation insurance, not general liability insurance.
• Professional errors and omissions: If you’re sued for professional errors and omissions, such as a mistake in your work that causes financial harm to a client, your general liability insurance won’t cover the cost of damages. Instead, you’ll need professional liability insurance.
• Cyber liability: General liability insurance doesn’t typically cover cyber liability, which includes data breaches and other types of cyber attacks.

How Much Does General Liability Insurance Cost for Contractors?

The cost of general liability insurance for contractors can vary depending on a few factors, including the size of your business, the type of work you do, and the risks involved. On average, contractors can expect to pay around $400-$600 per year for a basic general liability insurance policy. However, this price can vary depending on your specific needs and risks.

How Can Contractors Get General Liability Insurance?

Getting general liability insurance as a contractor is easy. You can work with an insurance broker or agent to find a policy that meets your needs and budget. Be sure to compare quotes from multiple providers to ensure you’re getting the best price and coverage. You’ll also need to provide information about your business, such as your industry, the type of work you do, and your revenue.

Conclusion

General liability insurance is an essential type of insurance for contractors. It protects your business from a variety of risks and liabilities, including property damage, bodily injury, personal injury, and advertising injury. Without general liability insurance, you could be held personally responsible for paying these costs, which could be financially devastating. By getting the right insurance coverage, you can protect your business, your clients, and your reputation.

FAQ

What is general liability insurance?

General liability insurance is a type of insurance that protects your business from a variety of risks and liabilities, including property damage, bodily injury, personal injury, and advertising injury.

Why do contractors need general liability insurance?

Contractors face a variety of risks and liabilities, including property damage, bodily injury, personal injury, and advertising injury. Without general liability insurance, contractors could be held personally responsible for paying these costs, which could be financially devastating.

What doesn’t general liability insurance cover?

General liability insurance doesn’t cover intentional harm, employee injuries, professional errors and omissions, or cyber liability.

How much does general liability insurance cost for contractors?

The cost of general liability insurance for contractors can vary depending on a few factors, including the size of your business, the type of work you do, and the risks involved. On average, contractors can expect to pay around $400-$600 per year for a basic general liability insurance policy.

How can contractors get general liability insurance?

Contractors can get general liability insurance by working with an insurance broker or agent to find a policy that meets their needs and budget. They’ll need to provide information about their business, such as their industry, the type of work they do, and their revenue.