Contractor business insurance protection can cause a lot of confusion. This is why we’ve compiled the following. We will answer some of the most common questions we get about general liability insurance from our customers.
FAQ 1: What is General Liability insurance?
General Liability insurance is sometimes also referred to as commercial liability insurance or small business insurance. It is to provide protection to contractors. What is more, it includes protection from personal injury. Additionally, this includes property damage and bodily injury claims made by a third party during or after a construction project.
It is a fairly comprehensive policy. However, some contractors will opt in for extensions or additional policies which will offer wider coverage. Make sure to discuss your extra coverage options with your insurance provider. As a matter of fact, avoid underinsurance. We can help.
FAQ 2: What does liability insurance cover?
General Liability insurance covers you in case of property damage, medical costs due to bodily injury, and electronic data liability. Slander and libel are generally covered by this policy as well. You can use your insurance protection to pay for settlements and legal fees. This includes certain situations, such as, where you have to make payments for damages to a third party’s property, advertising injuries, administration fees, court costs and attorney’s fees.
FAQ 3: How much does insurance cost?
The cost for General Liability insurance can vary. Most companies will pay a very small monthly fee, around $30. Indeed, it’s only 1% of businesses that reach high coverage costs of over $1000/month. Several factors influence the cost of the policy. These include:
- the size of the business,
- the location,
- the industry,
- your claims history,
- your choice of deductibles,
- and, risk management strategies.
FAQ 4: Are you required by law to have General Liability insurance?
There are several types of insurance needed, by law in order to operate your small contractor business. In addition, these include vehicle insurance, workers compensation and General Liability in most states.
However, almost 44% of small businesses never had any form of insurance. Needless to say, this is not a very good idea. One mishap or accident and you can be liable for a very large sum of money that has to cover court costs, attorney fees and damages. Moreover, General Liability insurance can provide a great degree of protection in these situations.
Get your contractor business insurance here
Currently in the market for contractor business insurance protection? We can help you find the best coverage for your business. Furthermore, we will guide you through the process of picking the right coverage. Additionally, we will help you find the most cost-effective option. For more details about the services we offer, call Farmer Brown Insurance on (888) 973-0016.