It’s an uncertain world out there and in no place is this more self-evident than the business of contracting. This is precisely why most reputable contractors carry general contractors’ insurance. Exposure to a lawsuit in contracting is great and may come from myriad quarters.
Contractors can find themselves facing both criminal and civil suits for any number of real or imagined infractions, often for situations and circumstances beyond their control. The types of liability with which a contractor may have to deal at some point in his or her career are numerous and varied.
One of the foremost liability issues most contracting businesses face is that of bodily injury, completed operations, products, personal injury and workers compensation suits, brought either by an employee or a random individual allegedly injured at or near a worksite, or someone injured by a product in which the contractor had some responsibility for producing. This latter can take place months, or even years after the job in question has been completed.
Good insurance helps protect against these sorts of claims, but that is simply the tip of what is generally acknowledged to be a very large iceberg.
Exposure to suits arising from construction site accidents is one of the primary reasons for carrying general contractors’ insurance, but suits arising from past activities or projects can also be incredibly detrimental, monetarily, to a contractor’s business. All it takes is for someone to be injured by a falling window, a roof tile blown off in a storm, or an exposed piece of metal for a suit to come into play. Without general contractors’ insurance, a business owner can see all he or she has worked for chipped away a piece at a time by legal expenses, fees and out of court settlements.
Many contractors carry coverage for work carried out at the job site, most often a customer’s residence or business, where the actual work is being done. This insurance protects the contractor from damage done to the property under construction as well as whatever structures and property already exist at the location. Additionally, this coverage extends to injuries of non-employees at or near the site. These are risks a contractor must deal with at virtually every job site.
The possibility of employee injury is not covered under general liability contractors insurance, due in part to the fact that this is generally covered under a separate policy dealing with workers compensation claims. Even the most conscientious contractor can—through no fault of his or her own—wind up looking at a lawsuit for any number of reasons, all of which could wind up costing the contractor more than the total net worth of their company, depending of course on the size of that company. Hence the importance of contractor insurance.
Disclaimer: The information provided in this article is for informational purposes only and may include generalizations or information subject to change. While every effort is made to ensure accuracy, errors or omissions may occur. This content does not constitute professional insurance advice, insurance coverage advice or an offer of insurance. For specific questions or personalized assistance, please contact one of our licensed agents by calling 888-506-2835.
