The construction business involves many risks. And not just to those involved in the construction, which may include general contractors, construction workers, electricians, plumbers, carpenters, and painters, but also to your clients and their property. Therefore, acquiring the proper liability insurance is essential to protect you and your contracting business from a variety of liability claims.
Benefits of Construction General Liability Insurance Protection
General liability insurance is one policy your contracting business definitely requires. Why? Not only is it required either by law in some states or to win certain contracts, but it also:
Protects your business against injury and or property damage
From working at heights to operating heavy equipment to handling electrical wires, construction is very physically demanding and dangerous. The potential for injury is, therefore, always present regardless of how careful you are. So in case of third-party bodily harm during construction activities, general liability insurance can help cover:
- Medical expenses
- Compensatory damages
- Attorney fees
- Funeral expenses in fatal incidents
Note: The policy does not cover employee injuries; you’ll need to purchase workers’ compensation insurance for this.
Aside from bodily injury, there’s also the risk of damaging the customer’s property. You or one of your workers, for instance, may accidentally hit a pipe, causing flooding or knock over an expensive artwork on display, breaking it. Construction general liability insurance protection can help pay for the cost of repair or replacement.
Now, in the event you’re sued, not having general liability insurance coverage could mean paying for medical and legal expenses out of pocket. This could drain your business financially to the point of no recovery. And you don’t want that, do you?
Protects your business against personal and advertising injury
You may not mean to, but while advertising your company and services, you may copy a competitor’s slogan or mimic their advertising campaign. And they may, in turn, sue you for copyright infringement. Construction general liability insurance protection covers this and more non-physical injuries, including defamation, both slander (spoken) and libel (written), and publications that violate privacy. This ensures your business remains up and running because you don’t suffer any or significant financial loss from the lawsuits.
Protects your business after your work is complete
If any of the work your company completes causes bodily injury or property damage, your company may still be held liable. For example, a plumber installs a new sink in a client’s kitchen. One week later, your client discovers the sink has leaked and damaged the expensive kitchen flooring. Under products-completed operations coverage, construction general liability insurance protection protects the plumber, who’s your subcontractor, from the client’s lawsuit over the faulty installation.
Note: You will only receive coverage if your policy is active when the bodily injury or property damage occurs.
While having a general liability policy isn’t a legal requirement in most states, it is still a good idea to have one. Call Farmer Brown Insurance on (888) 973-0016 today to learn more about how to get construction general liability insurance protection and discover more reasons why your firm should invest in a policy.