Three Protections offered by General Liability Insurance for General Contractors

General contractors in the construction industry often ask themselves, if not their insurance agent "Why do I need liability insurance when each of my subcontractors has their own insurance policy? I'm not doing any of the work myself." Particularly asked by small business owners in the construction industry looking to save money, they often come to this question after realizing the cost of insurance after obtaining free quotes. It's a good question. However, there are three major reasons why you would want your own policy and these involve monetary assistance with lawsuits asking for medical payments to property damage claim payments by clients. Today, we're going to talk about three reasons why liability coverage so important for general contractors.

Protection from Property Trespassers

When you begin working on a client property at the start of a job, you assume any and all events, accidents and things happening on the site. This is when the business owner's policy will not cover what happens on the site any longer. These happenings can include personal injury to the workers or employees, property damage to the site that you or your workers cause and even injury to people that trespassers on the site.

That last point is exactly why you should always put up warnings at the site. These signs should talk about the work that is being done and advertising injury that will happen if someone goes onto the site when they shouldn't. However, some people will not listen to these signs. That’s why you also add in a fence. Yet again, not everyone will listen to fences and sometimes they can be left open. Say that someone that shouldn't be able to, walks past your signs and then into the fence that someone may have left open on accident.

Now let’s say that they take a bad fall into a hole. The trespassing person ends up breaking a leg, they now have the ability to sue you, your site, or your company. If they choose to do so, they can take you to court to ask for one of many forms of help for their bodily injury. They could ask for help with the legal fees of the lawsuit, medical payments from the injury, medical costs from the injury, or even a check to cover financial loss resulting from time out of work.

Though it might not be your fault, you'll still have to prove that you did everything you could have to show them what they chose to do was in the wrong. In fact, even if you prove all these things in a way that you feel you should, you could still loose and that's when contractor's insurance becomes important. If you chose to forgo this, you would have to pay whatever cost they won yourself. In the end, what you pay could total much higher than if you had just paid for the insurance.

Protection from Your Hired Subcontractors or Independent Contractors

You won’t always someone you directly boss around working on site, yet people that subcontract under you will always be working on the site which can create issues should something happen. General liability coverage can be used in this case much the same way that it could be used in the previous example.

For a new example, let’s look at a painter. While on your site they are at risk of getting hurt and that risk falls on you. Taking it one step further, let’s say that the scaffolding falls which leads them to be seriously harmed. The subcontractor, whether it was him/her or their boss, will have workers compensation for cases like these. However, should that person decide that the reason they got hurt was your fault, then they still have the option to sue you for damages. Your insurance agent can protect you ahead of time in cases like this by crafting the perfect general liability policy that you will need. Don’t forget to ask about any additional insured areas you may need to be as protected as you can be. Examples of other policies are professional liability, commercial auto, as well as workers compensation.

Protection For and From Your Own People

As mentioned, you may not have anyone working on the site directly. However, should have someone on the site working as a superintendent or even an assistant superintendent. You might also have project managers, project engineers, and even interns coming regularly for meetings about the progress and what need to be done next. Each person like this has a chance to twist an ankle, drive into a wall, or otherwise get hurt or damage something. Your insurance company usually will suggest you get not only a general liability insurance policy but also a workers compensation insurance to prohibit liability risks just like these from affecting your work and business.

Commercial general liability insurance in the industry of construction is not only important in but often times required. No one wants to have to use their business insurance, however, it's there for the unexpected not matter if or when it happens. Should someone walk onto your site for any reason and get hurt, you don’t want them to be able to sue you or your company without any added protection. As is the case with almost every kind of insurance, you get it to ensure you have the coverage should something go wrong even if what happened was not your fault.

As always, you should talk to an insurance agency that understands your exact business and industry. They will be able to quote you an insurance policy that will be best for you. Make sure when you speak to them that the insurance agent can and will get you what you will need for proof on bids or project applications, such as a certificate of insurance.

Click Here For More Information: https://www.farmerbrown.com/hvac-contractors-liability-insurance/



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