Personal Financial Tips

Article by Devin Brindinshire

Whether you happen to be a general contractor or a sub-contractor, contractor’s general liability coverage is one type of coverage that you simply can not afford to do company without. Not only will almost all clients want your business to provide proof of GLI (general liability insurance) prior to allowing it on their property, but neglecting to insure your assets with this all-encompassing kind of business insurance leaves you subjected to potentially-catastrophic liabilities if mishaps or injuries take place during a job.

Things That Contractor’s GLI Covers

Contractor’s general liability coverage includes a number of essential kinds of coverages, that jointly cover bystanders, clients, subcontractors, and your workers on the below types of lawsuits:

* Advertising Injury (i.e., libel and slander)* Bodily Injury* Personal Injury* Property Damage* Products and Completed Operations

In every situation, the contractor’s general liability plan handles legal and settlement costs caused by claims being filed against the insured contractor. This traditionally includes all the other party’s medical expenses, income lost, as well as all suffering and pain that might have been endured.

Whereas some of the aforementioned kinds of claims (bodily injury, personal injury, and property damage specifically) are very common on project sites, the necessity for the others may be less obvious for a contractor. For this reason, it could be beneficial to look at each kind of claim with an illustration of an event that may lead to this kind of claim being lodged against a contractor.

Examples of the Kinds of Claims Covered

Advertising Injury

This type of claim is insured by the majority of contractors’ general liability policies, but it’s generally the rarest to actually be filed. Advertising injury is defined as damage experienced as a consequence of another party’s use of slander or libel towards the plaintiff. In the case of a contractor, one example could be a subcontractor submitting a claim against a general contractor on the premise that his professional reputation and earning capacity was affected by negative comments and publicity initiated by the general contractor.

Bodily or Personal Injury

Two of the more-common claims made against contractors, bodily injury and personal injury claims arise anytime a third party (e.g. a client or bystander) is inadvertently injured on a job site as the result of carelessness by the contractor. Personal injury claims sometimes include psychological and emotional injury due to either negligent or deliberate acts by the defendant. One example would be a bystander that is harmed by a falling step ladder that was left unattended by the contractor in an area that receives significant foot traffic.

Property Damage

Probably the most-prevalent claim seen on job sites, property damage claims originate from damage or loss of property as the result of the insured party’s activities. These actions may be either deliberate (in which case the plaintiff could also file a personal injury claim on grounds of psychological and emotional damage) or unintentional, and are sometimes filed as a result of damages that happen after the contractor has already completed the project. A frequent example of this would be a plumber who’s sued because water lines he installed begin leaking and causing destruction of the surfaces and flooring around them.

Products and Completed Services

Products and completed services insurance is particularly critical to contractors, as it insures any claims that occur should a client feels that a job was not completed correctly. This could be in the form of a foundation that subsequently splits or a wall surface that falls down at some time after the job is completed.

What Types of Contractor’s Should Have GLI?

Contractor’s general liability insurance is essential for any type of contractor or sub-contractor because, as you are doubtlessly aware,our culture is one in which some people employ litigation, along with the threat of legal actions, as their primary method of handling disputes. Due to the fact a contractor’s job calls for him to pass extended periods of time on other people’s premises, contractors and subcontractors are exposed to an exceptional array of liabilities that may turn into lawsuits at a moment’s notice. As a consequence, safeguarding your business and personal assets with a full general liability policy is not just wise – it’s imperative if your company is to thrive.

Learn more about general liability insurance. Stop by Devin Brindinshire’s site where you can find out all about commercial general liability insurance and what it can do for you.

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