What is Contractor Liability Insurance?
As a contractor you undoubtedly know about contractor liability insurance. However, many of us on the outside of the general contractor trade may not know what general contractor liability insurance actually is. It is the unfortunate truth that we live in an increasing litigious society. It seems that money is everyone’s priority, and work ethic is a fading characteristic. The easier the money is to get the better. As such, liability insurance is becoming the standard protection in almost every trade. This is particularly true for contractors. People will look for any reason to sue, and the only way that general contractors can protect themselves is with contractor liability insurance.
What Does Contractor Liability Insurance Cover?
Contractor liability insurance is intended to cover almost anything the contractor builds, sells, prepares, or uses on the job site. The possibilities for injury or damage can be almost endless when it comes to contracting work. People are notorious for being their own worst enemy, and accidents happen everywhere there is the possibility.
Liability insurance for contractors can protect the insured from onsite accidents caused by their equipment, their projects, or themselves. Lawyers have though up countless ways to blame the contractor for injuries on the jobsite. A stray nail that someone steps on, or a loose board that falls and damages some property are both things that are out of the contractors control, but by which he can be held liable.
Most contractor liability insurance policies have restrictions built into the contract that exclude certain activities from coverage. Often liability caused by faulty workmanship is excluded from coverage.
How Long Does Liability Insurance Coverage Last For The Contractor?
Contractor liability insurance comes in two different forms, liability based and claims based. The liability based coverage provides coverage for the insured during the course of the contract. If anything happens during the coverage period, the insurance company will cover it. Claims based coverage will cover the claims that are filed during the terms of the contract, despite when the liability actually occurs. This type of contractor liability insurance often stipulates a starting date for with liability coverage begins however.
That being said, the liability coverage for the contractor can last through the project, as well as cover for accidents and damage after the project is complete. This assures that the general contractor is covered for any liability that happens after the contract is complete.
Why Should You Get Multiple Contractor Liability Insurance Quotes?
Getting multiple contractor liability insurance quotes is important mostly for the potential savings that can be found. As you find us frequently advising on this site, go out and get your quotes. Not all insurance companies are created equal; this includes contractor liability insurance companies.
Each insurance company is given an outside appraisers rating. Use this to help determine that the company you are working with is sound. Each company with have different coverage and features to their policy. Be sure to find on that fits your specific needs. There are hundreds of companies that offer contractors liability insurance. One of these companies is going to have a policy that fits you personally.
Contractor liability insurance provides general contractors the protection they need to accomplish the work that they set out to do. Rather than worry about constantly being sued, these individuals may do their work and focus on what is really important to them.
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