3 Things You Need To Know About Contractor Liability Insurance
Posted on: 29 September 2021
If you run a construction company and build and work on other people's property, you must carry a contractor's liability insurance policy. This type of policy is about protecting yourself and your business from liability claims, which is always a possibility when your work requires you to be on other people's property most of the time.
Contractors include a wide range of professionals, such as general contractors, concrete contractors, roofers, carpenters, electricians, handypeople, snow removal businesses, and a wide range of other building services.
Most contractors' liability insurance policies are going to cover a few specific things. It is important to understand what is covered and what isn't.
Bodily Injury
The first thing that your insurance will cover is bodily injury if a customer or vendor is injured at a job site. For example, if a customer trips and falls and breaks their leg at a job site, your insurance will cover their medical costs and any legal actions they may take against you. An injury of a customer can easily add up and ruin your business without the right insurance in place.
It is important to note that you will need worker's compensation insurance to protect yourself against bodily injuries sustained by employees.
Property Damage
When you are working on someone else's property, there is always a chance that you could cause damage to something that you shouldn't. For example, perhaps the floors get damaged while doing plumbing work, or maybe you damaged some furniture while doing some general contracting work. Even when you are as careful as possible, accidents happen, and this ensures that an accident doesn't have to end your business.
If you damage a client's property, your contractor's liability insurance will cover the costs to fix the damages.
Advertising Injury
As a contractor, you more than likely have to advertise your services. If you or an employee makes a false claim in an advertisement or to a customer, your liability insurance will protect you and cover any legal and settlement costs.
Equipment coverage
You can add on equipment coverage to your contractor's liability insurance policy. This is a common add-on for contractors who often have a lot of equipment that they take with them to various worksites. If your equipment is damaged or stolen when working, you can get it replaced with equipment coverage.
If you are a contractor, you need to protect your business with contractor's liability insurance, which will provide you with bodily injury, property damage, and advertising injury protection, as well as equipment coverage if you get it as an add-on.
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