Understanding General Liability Insurance for Contractors
As one of the most dangerous industries in the United States, your contracting business must take an active approach toward ensuring safety and mitigating risks. However, no level of attentiveness, experience or prudence can fully suppress all potential accidents or errors. A slight lapse in attention or miscalculation could lead to serious injuries, significant damages and costly financial losses. Given these stakes, your business must prioritize a suitable insurance portfolio, including adequate general liability coverage.
What Is General Liability Insurance?
General liability insurance is integral to your company’s loss control measures. As its name suggests, this coverage addresses many common risks and exposures, and may provide critical financial assistance in response to incidents involving third parties. Although the details of your policy may be customizable, general liability insurance can usually be relied on to help pay for the following incidents involving third-party losses:
- Bodily injury—If you are responsible for another party’s injuries, this coverage can help pay for their medical expenses and compensate them for the resulting lost income.
- Property damage—If your business is at fault for damaging another party’s property, your general liability insurance can help pay to repair or replace it.
- Personal and advertising injury—This coverage can provide financial assistance for legal costs and other losses if you are responsible for personal and advertising injuries, such as libel, slander, false advertising and copyright infringement.
Although general liability coverage is essential, your firm may have limited resources. Fortunately, understanding what contributes to your premiums may help you maintain a strong policy at ideal prices.
What Contributes to General Liability Costs for Contractors?
Your company’s general liability insurance costs may vary significantly even when compared with businesses that appear outwardly similar. Insurance companies must thoroughly analyze many factors when determining your coverage needs and providing a customized quote. This process generally includes consideration of the following criteria:
- Type of contractor (e.g., roofing, paving, plumbing)
- Number of employees
- Business size/revenue
- Experience levels
- Insured subcontractors
- Prior claims
- Policy details (e.g., endorsements, limits, deductibles)
Get the Right Coverage
Contractors often work amid dangerous conditions on a daily basis. Worksites may include heavy machinery, sharp objects, hazardous and flammable materials, and motor vehicles. These jobs may be conducted next to neighboring properties or public right of way, so third-party losses must be accounted for.
We’re here to help. At V Financial Insurance Group, we dedicate ourselves to ensuring that our clients have optimal coverage to secure their financial wellness and future growth. Contact us today to get started.
This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.
Categories: General Liability