Out of the approximately 30 million small businesses in the US today, 44% have never had insurance protection. Whether they find insurance overpriced, or they are simply not up to speed with how insurance works and consider it a wasteful expense, one thing is certain – these businesses open themselves up to tremendous risk.

With General Liability insurance, however, your contractor business is covered for any expenses related to property damage and third-party injury. For example, if a visitor is injured while on your job site, or if during a renovation project, some degree of property damage occurs, you will be protected by General Liability insurance.

Other damages covered by this policy include customer injury, customer property damage, libel and slander, and products-completed operations.


How does contractor business insurance protect you against claims?

  • Let’s say that you have a slightly out of place ladder or toolbox on your worksite. It just happens that your customer trips and is injured. You may end up paying for both legal and medical expenses. General liability insurance, however, will cover your attorney fees, settlements, funeral expenses in case of a fatal accident. It’ll also cover court-ordered judgments, and medical bills.
  • However, it’s important to keep in mind that this policy will not cover any injuries sustained by your employees. Workers’ compensation insurance covers those.
  • Let’s take a look at another scenario. During a remodeling project, one of your subcontractors accidentally damages a piece of your client’s furniture. Depending on the furniture, the price of repair or replacement can be very high. However, that’s not all; the client may also decide to take you to court over the damage.
  • When it comes to libel and slander, you may inadvertently mimic a competitor’s campaign or slogan, or you may have a marketing message that someone considers defamatory. The policy covers copyright infringement, and defamation as a result of your marketing or advertising campaigns.
  • And finally, we have products-completed operations coverage. This will protect you in case any of your finished work causes property damage or a bodily injury because of faulty workmanship. Let’s say that you are a plumber, and you installed a new sink. After two weeks, the sink leaks and damages the client’s flooring. In this situation, General Liability insurance would cover you in the case of a lawsuit.


Still have questions about contractor business insurance protection?

Contractor business insurance can be confusing. There are many aspects of a policy that require a degree of in-depth knowledge to understand. However, this is why we’re here. We help our clients understand what they sign up for and how to make the most out of their coverage. If you have any questions or would like to find out more about our services, call Farmer Brown Insurance on (888) 973-0016.

Written by: John Brown
John has more than 25 years of experience in the insurance industry. He grew from a star insurance producer to owning one of the largest agencies in the country; he's a reference regarding contractor's insurance, commercial insurance, and builders' risk insurance.