Construction general liability insurance protection covers your business from a variety of claims alleging property damage or bodily injury. The policy protects your business if sued and helps you qualify for leases and contracts. Now, since insurance providers create various versions of general liability insurance, it’s important to familiarize yourself with the offerings of your plan to avoid any unwanted surprises. Here’s how to go about it.
Know what your policy covers
A standard general liability insurance policy can cover if:
- A third-party gets injured during the course of business. The policy may pay for medical expenses, funeral, and court-awarded compensations.
- You or your employees cause damage to a customer’s property. General liability insurance can help cover replacement or repair costs.
- You are renting commercial space that gets damaged by a covered peril.
- Someone sues you for false advertising, slander, libel or copyright infringement.
Note: Some policies will also cover liabilities directly arising from faulty workmanship. For example, bodily injury and or property damage claims that result from equipment improperly installed by your company. However, not all policies offer this coverage, so check to confirm whether yours is among those that do.
Know what your policy doesn’t cover
Construction general liability insurance protection does not cover:
- Commercial auto accidents involving vehicles used for work purposes; commercial auto insurance helps cover auto claims.
- Employee injury or illness resulting from their job; workers’ compensation insurance helps cover workplace injuries and illnesses.
- Property damage to your own business property; commercial property insurance helps cover those claims.
- Errors and omissions in the services your business provides; professional liability insurance, also known as errors and omissions insurance, can help cover claims of negligence, misrepresentation, violation of good faith and fair dealing, and inaccurate advice.
Know who your policy covers
A general liability insurance policy can cover you, your employees, and your subcontractors. However, many policies exclude subcontractors from your liability coverage. If that’s the case, to ensure your subcontractors have adequate construction general liability insurance protection, ask them to get a plan with the same limits of liability as yours.
Know what determines the cost of general liability insurance
Understanding which factors affect the cost of getting construction general liability insurance protection helps you know what you need to or can do to keep your costs down. These factors include:
- The physical size of your business; larger businesses have an increased rate for general liability insurance.
- Experience can affect your general liability insurance rate, depending on how long you’ve been operating your business.
- Number of employees. The more employees you have, the more risks involved hence higher insurance rates.
- Limits and deductibles. Your deductible amount for your policy could mean a higher or lower rate.
- Claims history. Businesses with clean claims histories yield lower insurance rates.
Find out more about Construction General Liability Insurance protection
A good insurance company will offer you the right coverage at the right price. And Farmer Brown Insurance is one such company. We can get you insured correctly at the lowest cost and guarantee certificates of insurance in under 4 hours! Call us today on (888) 973-0016, and we will get you quotes from at least three different insurance companies for you to compare free of charge.