Guide to Insurance for General Contractors – Contractors Liability
Given that there are various types of construction insurance policies, a guide to insurance for general contractors can help you decide on the most suitable one for your business. In this article, we will discuss the most common insurance coverages for general contractors, as well as the coverage triggers. But first, what is general contractor insurance?
What is General Contractor Insurance?
General Contractor Insurance is insurance coverage that protects general contractors against financial loss through various phases of a construction project. In many instances, it is a requirement to carry certain construction coverages by law, before you will be awarded a contract.
Types of General Contractor Insurance Policies
As a general contractor, having proper insurance coverage comes with various benefits, for instance:
- helps you win new jobs as it shows your business is reliable and trustworthy.
- protects your business against third-party injuries, damaged property, and related lawsuits.
- It provides asset and employee protection.
- covers different legal fees if you’re sued, including attorney fees and witness fees.
- It gives you peace of mind since it protects you financially in the event of unexpected loss or damage.
The 4 insurance coverages we will discuss in this guide to insurance for general contractors are:
- Commercial General Liability (CGL) Insurance
A Commercial General Liability policy provides liability protection against claims of property damage and bodily injury occurring on your business premises or caused by your business’ operations. In case you’re sued, it can also pay for your legal fees and settlement claims up to the limits of your policy.
Any number of things could go wrong on a busy construction site, including falls from heights, getting struck by objects, electrocution, trenching & excavation accidents or chemical injuries. You need, therefore, to carry a certain amount of Liability Insurance by law in some states, or to win contracts.
Note: General Contractor Liability Insurance typically doesn’t cover faulty workmanship.
- Workers Compensation Insurance
The next coverage we will review in this guide to insurance for general contractors is Workers Compensation. This coverage provides medical care, wage loss, death, disability, and rehabilitation benefits for employees who receive an injury or killed while on the job. It is, therefore, a requirement for companies with employees in almost all states.
Note: According to the Occupational Safety and Health Administration (OSHA), 1008 construction workers died on the job in 2018 in the US.
- Builder’s Risk Insurance
This insurance provides coverage for buildings and other structures while they are under construction or renovation. Builder’s Risk provides cover for building materials, labor costs, scaffolding, landscaping, HVAC systems, theft and fire. The poldoes not cover damages caused by earthquakes, floods, or wind, especially in coastal areas.
Note: You can purchase additional coverage for policy exclusions.
- Commercial Auto Insurance
Number 4 on our guide to insurance for general contractors is commercial auto insurance. This policy covers damages to your business vehicle, and bodily injury to someone else when you or one of your employees cause an accident. It also protects your company vehicles from theft and damages while parked, such as vandalism.
Note: Commercial auto insurance helps you avoid high vehicle repair costs and medical expenses.
Get The Right Policy To Cover Your Business
Commercial General Liability Insurance, Workers Compensation Insurance, Builder’s Risk Insurance, and Commercial Auto Insurance are not the only General Contractor Insurance coverages available. At Contractors Liability, we can offer you the policies mentioned in this guide to insurance for general contractors, among others. Let us help you adequately insure your business. Call us at 888-676-0923.
