What Does General Liability Insurance for Contractors Cover?

Whether you’re a seasoned contractor or just starting your own construction business, effectively handling risk is crucial to your profession. Construction sites feature many potential hazards, and accidents can occur despite the most meticulous precautions. This is where general liability insurance becomes essential. It serves as a financial safeguard, shielding you and your business from various unforeseen events. 


 What Is General Liability Insurance? 


General liability insurance is a fundamental coverage that helps protect businesses from various claims. For contractors, it acts as a financial shield against legal issues and financial liabilities that may arise during your work.  


What Does General Liability Insurance Cover? 


The following are some areas that general liability insurance typically covers: 

• Bodily injury coverage—This coverage can help pay for medical expenses, legal fees, and potential settlements or judgments if a third party, such as a visitor or a passerby, gets injured due to your business operations.

• Property damage coverage—This aspect of general liability Insurance may help cover damage to third-party property caused by your business operations. For example, if you accidentally damage a client’s property during construction, this coverage may help cover repair or replacement costs.

• Personal and advertising injury—This facet of the policy addresses claims of slander, libel or copyright infringement. It can protect your business from the financial consequences of such claims, including legal defense costs and potential settlements.

Why Do Contractors Need General Liability Insurance? 


General liability insurance is a critical asset for contractors due to several reasons. First, it may be required for professional licensing or contracts. Second, it serves as a financial safety net, shielding your assets from potential bankruptcy caused by lawsuits. Additionally, it enhances your business’s appeal to clients and project owners who often require it as a prerequisite for hiring. Lastly, this insurance offers peace of mind, enabling you to concentrate on your work without constant worry about unexpected legal or financial challenges. 


Contact Johl & Company today to discuss your insurance needs. We can help ensure you have the right coverage to prepare for the unexpected. 


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.