Any business owner knows that accidents happen, no matter how well you plan or how experienced your employees are. If one of your employees damages something or hurts someone while working on a job, you could be held liable. That’s why contractors need to have liability business insurance.
This type of insurance can help protect you from the financial burden of a lawsuit, and it can also help cover the cost of damage repairs. Whether you are a small home improvement contractor or a large construction company, contractor liability insurance is essential for doing business.
This article will discuss the benefits of having a general liability insurance policy for construction businesses, the associated costs, and the right providers to help you with your insurance needs. Keep reading to learn more!
What types of contractors or businesses need general liability insurance?
General liability insurance is property and casualty insurance that protects businesses from claims arising from their operations. These policies cover many risks, including bodily injury, property damage, personal and advertising injury, and medical payments.
Businesses typically require general liability insurance in various industries, including:
-Plumbers
-Electricians
-Carpenters
-Independent Construction Contractors
-Painters
-Roofers
These businesses must carry this type of insurance to protect them from the potentially devastating financial consequences of being sued. Without this protection, a single lawsuit could bankrupt an otherwise healthy company. Therefore, companies in these industries must carry general liability insurance for financial protection.
For example, if a construction worker is injured, the worker’s medical bills and lost wages would be covered by the contractor’s general liability insurance policy. Therefore, any business that provides services to customers needs to have insurance in place. This is especially true for companies that deal with physically demanding work, such as concrete contractors.
The most important type of insurance for a concrete contractor is general liability insurance. There are several risks associated with concrete contracting, including injuries to workers and damage to property. As a result, concrete contractors must have insurance that will protect them in an accident.
Before agreeing to work with your company, clients may request proof of general liability insurance. A certificate of insurance, or COI, may be required in the contract. Similarly, your city or state may impose specific liability insurance requirements if you apply for a permit or license to do that work.
Additionally, add-ons may be necessary for your current policy. Other coverage includes workers’ compensation insurance, as it will provide coverage for any injuries and medical costs that employees sustain while working on a job site. You can also investigate getting equipment coverage or data breach coverage which can protect you in the event of security or funds being accessed but an unauthorized source.
What are the liabilities of a general contractor?
A general contractor is responsible for coordinating and overseeing construction projects. They hire subcontractors to complete specific tasks, purchase supplies and equipment, and ensure that the project stays on schedule and within budget.
While a general contractor typically does not perform the actual work themselves, they can be held liable for any accidents or injuries on the job site. For example, if a worker is injured while using equipment that the contractor supplied, the contractor could be held responsible.
In addition, if a sub-contractor damages property while working on the project, the contractor may be held liable for the repairs. As a result, general contractors need to have a liability insurance policy before starting any new projects.
What are the general contractor insurance requirements?
When you are a contractor, many risks come along with the job. You could be held liable for damages or injuries that occur on the job site, and if you don’t have adequate insurance, these costs could quickly bankrupt your business.
In Oregon specifically, this insurance must meet specific requirements to be valid. Whether you’re a solo contractor or a large construction firm, contractor general liability insurance is essential to protecting your business from costly lawsuits. For example, the policy must have a minimum limit of $500,000 per occurrence, and it must be issued by an insurance company that is licensed in Oregon.
For more information about coverage and the requirements needed to sign up for an insurance policy as a contractor in Oregon, please visit this link: https://www.oregon.gov/ccb/licensing/pages/liabilityinsurance.aspx
What does general liability insurance not cover?
Contractor general liability insurance protects businesses from third-party claims of property damage or bodily injury. However, many types of claims are not covered by this type of insurance.
For instance, claims arising from faulty quality or breaches of contract are not typically covered by contractor general liability insurance. This type of insurance does not cover damage to the insured contractor’s property.
Also, many insurers exclude coverage for environmental pollution or mold damage. As a result, business owners need to understand the limitations of their contractor’s general liability insurance policy before making a claim.
Another thing to remember is that general liability insurance only covers claims made against the business, not allegations made against the individual contractor. If you’re sued for damages caused by your work, insurance will not protect your personal assets.
Finally, it’s important to remember that general liability insurance does not cover workers’ compensation claims. If an employee is injured while working, they will need to file a workers’ compensation claim to receive benefits.
All in all, contractor general liability insurance is a vital type of insurance for businesses that work with the public. While this insurance will not cover every possible claim, it can protect businesses from many kinds of third-party lawsuits.
How much does general contractor insurance cost?
The cost of a contractor’s general insurance policy will vary depending on several factors, including the size and scope of the project, the location of the project, and the type of work being performed. However, most policies will typically fall within $500 to $2,000 per year.
General liability insurance is generally based off:
-The type of business
-The size of the business
-The location of the business
-The gross sales of the business
-The number of employees the business has
-The amount of time the business has been in operation
-The credit score of the business
For larger projects or projects that involve high-risk activities, the cost of the policy may be higher. In some cases, insurers may also require a written contract between the contractor and the property owner to provide coverage. The premium for this policy is based on the contractor’s credit score, claims history, and the type of work they perform.
Ultimately, the best way to determine the cost of a contractor’s general insurance policy is to request quotes from multiple insurers and compare rates.
Is there additional contractor liability insurance I can purchase?
As a contractor, you are responsible for protecting your business from various risks. In addition to general liability insurance, which covers third-party injuries and property damage, you may need to purchase many other types of insurance.
Commercial property insurance covers the physical structure of your business, provides equipment coverage, and protects inventory. This type of insurance is helpful if a fire damages your business, severe weather, or vandalism. Similarly, if you lease office space, you may need to purchase commercial liability insurance to protect yourself from claims arising from your lease agreement.
If you have employees, you will also need to purchase workers’ compensation insurance which we mentioned previously. This type of insurance covers medical expenses and lost wages for employees injured while working. Workers’ compensation insurance is required in most states if you have employees.
Business income insurance protects you if your business is forced to close due to an insured event, such as a fire or severe weather.
In some cases, you may also need to purchase commercial auto insurance if you use vehicles for business purposes, such as trucks and trailers.
What is the best general liability insurance for contractors?
When it comes to insurance, there is no one-size-fits-all solution. The best kind of insurance for a contractor depends on the specific risks faced by the business. However, some general liability policies are well suited for most contractors.
For example, a business owner’s policy (BOP) can cover property damage, personal injury, and other common risks. A BOP is typically more affordable than a stand-alone policy, making it a good option for budget-conscious businesses.
In addition, many BOPs can be customized to meet the specific needs of a contracting business. For example, some policies include optional coverages for equipment breakdown or business interruption. As a result, a BOP can be a good choice for businesses that need flexibility in their coverage.
Another suitable type of general liability insurance for contractors is called “errors and omissions” insurance. This type of policy covers the cost of repairing or correcting any errors or omissions that result from the contractor’s work. It protects against claims arising from negligent acts, such as failing to inspect a site before beginning work properly. By ensuring adequate coverage, contractors can protect themselves from the financial consequences of mistakes or accidents.
When shopping for insurance, it’s essential to compare policies from multiple insurers to find the best coverage at the most affordable price. An insurance agent or broker can help you examine the policy limits and ensure you’re getting the best possible coverage for your business.
The contractor insurance company you can trust
When searching for superior insurance providers, look no further than Capital & Coinsurance Services. Our teams are comprised of the industry’s top producing insurance agents broken into different departments with specialization in providing businesses and individuals with the right insurance coverage at the best possible rate per customer.
We understand that each customer has unique insurance needs, and our agents are here to make sure those needs are met. When it comes to insurance, contractors have a lot of specific requirements that their carriers must meet to protect themselves, their businesses, and their clients.
Unfortunately, many other insurance companies are not familiar with the unique risks that contractors face and cannot provide the coverage they need. That’s where we come in. We are a dedicated insurance provider for contractors, offering general liability and professional liability insurance.
We understand the risks that contractors face, and we have the experience and knowledge to tailor a policy that meets your specific needs. In addition, we are committed to providing outstanding customer service, so you can rest assured that our company will always take care of you if you need to file a claim. If you’re looking for an insurance company that is familiar with the unique needs of contractors, Capital & Coinsurance Services is the right choice for you.
Moving forward
General liability insurance is a must-have for any contractor. It protects against claims arising from property damage, personal injury, and other common risks. There are many different types of general liability policies available, so it’s essential to compare policies from multiple insurers to find the best coverage at the most affordable price. When shopping for insurance, be sure to work with an experienced agent familiar with the unique risks faced by contractors.
Capital and coinsurance is an ideal company to purchase this specific type of insurance from. We know what coverage is necessary for contractors and can provide it at an affordable price. With our wide variety of policy options, we make it so that contractors can find the right one for their needs. While other companies may offer similar coverage, they do not have the same depth of knowledge or experience as Capital and Coinsurance. As a result, they cannot provide the same level of service or protection.
Let us know if you have any further questions moving forward, and our team of experienced individuals will be happy to assist you!
