What Is General Liability Insurance for Contractors?

General Liability Insurance for Contractors

As an owner, you need general liability insurance for contractors to safeguard your business from potential financial losses.

What Does Contractor General Liability Insurance Cover?

This type of builder’s policy protects against legal claims such as:

  • Product claims: These suits may arise if the equipment you install causes damage.
  • Property damage lawsuits: Clients may file a claim when your business is responsible for harming their property.
  • Bodily injury cases: These legal claims happen when people not working on the job site sustain injuries due to your actions.
  • Accidental advertising issues: You may have slander or libel claims filed against you by competitors if your marketing campaign is similar to theirs.

What Does General Liability for Builders Exclude?

General liability insurance for contractors protects against common industry risks. It does not offer coverage for many specific events, such as:

  • Errors and oversights: An additional professional liability plan is necessary to safeguard your company when mistakes occur during the project.
  • Employee injuries: Your general liability policy does not cover expenses related to worker injuries. You need workers’ compensation coverage for these types of claims.
  • Vandalism or Fire: For events like this, you require an active builder’s risk policy to protect you from financial loss during the construction process.
  • Damage to your property: Commercial general liability pays for repairs to other people’s property, not your own.

Legal expenses and judgments can be costly. General liability insurance for contractors shields you from various risks that occur in the construction industry.