Why Contractors Need General Liability Insurance
Regardless of if you are a general contractor or a sub-contractor, contractor's general liability
insurance is one type of insurance coverage that you can not afford to do business without. Not only
will the majority of jobs require your company to provide proof of GLI (general liability insurance)
before allowing it on their property, but neglecting to protect your assets with this wide-ranging kind of
business insurance leaves you exposed to sometimes-catastrophic liabilities if mishaps or injuries
occur during a job.
Things That Contractor's GLI Covers
Contractor's general liability insurance coverage includes a number of vital kinds of coverages, that
collectively insure bystanders, customers, sub-contractors, and employees against these kinds of
* Advertising Injury (i.e., libel and slander)
* Bodily Injury
* Personal Injury
* Property Damage
* Products and Completed Operations
In every case, the contractor's general liability coverage covers legal and judgment expenses caused
by claims being filed against the insured contractor. This generally includes all the other party's
hospital expenses, earnings lost, and all pain and suffering that could have been endured.
Whereas a few of the aforementioned kinds of claims (bodily injury, personal injury, and property
damage specifically) are rather common on job sites, the necessity for others might be less evident
for a contractor. For this reason, it may be beneficial to review each type of claim using an example of
an occurrence that can result in this type of claim being filed against a contractor.
Examples of the Types of Claims Covered
Such a claim is protected by the vast majority of contractors' general liability policies, but it's probably
one of the rarest to actually be filed. Advertising injury is defined as damage sustained as a result of
another party's use of slander or libel against the plaintiff. If you are a contractor, one example might
be a sub-contractor submitting an insurance claim against a general contractor on the premise that
his professional reputation and earning potential has been weakened by damaging reviews and
publicity initiated by the general contractor.
Bodily or Personal Injury
A couple of the more-common claims made against contractors, bodily injury and personal injury
claims occur anytime a third party (e.g. A customer or bystander) is inadvertently injured on a job site
as the result of carelessness on the part of the contractor. Personal injury claims sometimes can
include psychological and emotional injury that result from either negligent or deliberate acts by the
defendant. One example is a bystander who is injured by a falling step ladder which was left
unattended by the contractor within an area that gets significant foot traffic.
Damage To Property
The most-prevalent claim observed on job sites, property damage claims originate from damage or
loss of property because of the insured party's activities. Such actions might be either deliberate
(whereby the injured party may additionally submit a personal injury claim for psychological and
emotional injury) or accidental, and are occasionally filed due to damages or injuries that happen after
the contractor has already completed the project. One common illustration of this would be a plumber
who is sued because water pipes he installed begin leaking and causing damage to the walls and
flooring near them.
Products and Completed Services
Products and completed services insurance is very critical to contractors, because it covers the
claims that occur should a client believes that a job was not done appropriately. This might be by way
of a foundation that eventually splits or a wall that collapses at some point after a job has been
Which Kinds of Contractor's Should Have GLI?
Contractor's general liability insurance is vital for any type of contractor or subcontractor because, as
you're undoubtedly aware,our culture is one wherein some people utilize lawsuits, and the threat of
lawsuits, as their principal means of settling disputes. Given that a contractor's business requires him
to pass long periods of time on other people's premises, contractors and subcontractors are open to a
tremendous array of liabilities that can transform into lawsuits at a moment's notice. As a
consequence, safeguarding your business and personal assets with a comprehensive general liability
policy is not only smart - it's a necessity if your company is to survive.
Contractors Insurance Services Nassau County