The work of the contractors within the construction businesses carries certain risks. Depending on their trade, project complexity, and clients’ requirements, these risks can sometimes be relatively high. For example, electricians who do the entire building rewiring are exposed to electrical hazards. Also, their negligent work can put others at risk and cause significant property damage.
Employees and clients may be at risk of injury and property damage. If they are summoned, they have the right to sue you and seek an appropriate settlement. That can interfere with your work. Also, these situations carry a significant financial and legal responsibility. Furthermore, if these mishaps repeat often or you don’t address them correctly, they can ruin your reputation and business.
You certainly don’t want that to happen. That’s why you must have general liability coverage. In most states, it’s a condition to obtain a contractor’s license. Also, your employer might require you, as a contractor, to carry this type of policy. And don’t be surprised if your clients ask for your proof of insurance – they are cautious with a good reason.
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What This Insurance Covers?
It will pay for medical and legal costs if anyone is injured during your work. The same goes for your client’s properties, as you have to pay for all the damage you made. In any case, you’ll need to have GL insurance to protect yourself and your business from lawsuits. It’s basic coverage that most insurers offer to their clients.
But some insurers will go the extra mile to help you save your business from various threats. For example, they will offer add-ons that include work equipment and business vehicle damage or failure. Some companies even provide you with data breach coverage. That comes in handy if you work with sensitive data.
Who Needs GL Insurance?
A general liability policy will protect you from any lawsuits related to any job you do. So whether you’re a carpenter, plumber, roofer, or general contractor, having this protection won’t hurt. Those working in trades and construction need this policy to prevent financial risks and diminish the effects of unforeseen situations or negligent work.
If you’re unsure whether you’ll need general liability insurance, you can click here or check with your insurer. If you don’t need this coverage, you can opt for a separate policy with the same exclusions. But in the long run, it’s always better to consider a plan that covers these exclusions.
GL Insurance Costs
When comparing rates for general liability insurance for contractors, make sure to consider how much coverage you’ll need. The cost will vary depending on your trade, business risks, number of employees, and other factors. Then, contact your agent and get a quote for your specific needs. This way, you’ll be able to make an informed decision and ensure that your business is protected.
General liability insurance for contractors can range anywhere from $400 to over $1,300 per year. The median rate varies from state to state and trade to trade. Also, your financial standing, niche experience, and track record matter, so as the history of claims against you. It’s good to compare quotes from several insurers before choosing the plan to protect your business.
How to Get General Liability Insurance
You know you need GL insurance as your employer or state asks for it. But not every policy is the same, so you have to do the risk evaluation for your business or a particular project your work on. So you must know the coverage you need, which will be the primary factor in determining the monthly premium.
Most insurance companies offer the service and allow you to get an online quote. This option is good if you have complex needs and want dedicated help to find the best coverage for your business. You can contact them or ask an insurance broker to do that for you.
Choosing the right policy is crucial for your business. The right coverage will protect you from the potential financial burden of lawsuits. It will also protect your clients and employees. So make sure you’re fully covered with a policy that suits your needs.