Contractors are exposed to unique risks each day. Whether you are working on a large construction site or a home renovation, the chances of injuries and property damage are relatively high. To protect your business from eventualities that may lead to massive financial and reputational loss, you must ensure that you have general liability coverage in your contractors insurance.
In this blog, we will discuss 8 reasons why having general liability coverage in your contractors insurance is crucial to your business.
Why Must You Include General Liability Coverage in Your Contractors Insurance?
The reasons why you must consider buying general liability coverage in your contractors insurance policy are:
- Protects your business from bankruptcy
If your services cause third-party bodily injury and damage to property, depending on the severity of injuries and damage, you may be in for an exorbitant bill. The general liability insurance will cover high medical, repair, and replacement costs. Paying the bills from your resources without liability coverage may lead to bankruptcy.
- Covers your legal costs and lawsuit settlements
During lawsuits from an aggrieved party, which can prove expensive, your business is secure if you have sufficient general liability coverage. Even if the court finds you not liable to pay the settlement, the legal costs you may incur can cause considerable financial setbacks if you do not have the required coverage.
- Mandatory in some states
Contractors need a contractors license to operate their business. Many states have made it mandatory for contractors to buy general liability insurance. You will be issued a license by the state only after you furnish a certificate of insurance (COI) as proof of your liability insurance.
- Provides coverage for all third-party claims
Your general liability insurance secures you from most third-party claims and is not limited to claims made by your client. It covers liability claims made by others on-site such as other contractors, vendors, or visitors.
- Covers liability claims related to completed projects
Your liability coverage also covers injuries and damages to third parties from your completed projects. You will be covered for any injury or damage caused by a service you have completed in an earlier project.
- Covers false advertising claims
Businesses being unfairly accused of false advertising claims are a frequent occurrence today. Your liability insurance provides coverage to cover the required expenses needed to protect your business from such claims.
Owning general liability insurance is often a necessity in getting new projects. It also helps create confidence among your clients as they perceive you as a professional company.
- Buy an add-on for equipment protection
For more extensive protection of your business, you may include equipment coverage in addition to your liability coverage to cover repair and replacement costs.
Ensure Comprehensive Protection for Your Business with CDF-Artisan Insurance
For more information about the merits of having liability coverage in your general contractors insurance, contact our team today. At CDF-Artisan Insurance Solutions, our expert team can help you get insurance coverage based on your unique business needs that offer maximum protection at affordable costs.