Why do I need a General Liability Policy if I am a Contractor?
A contractor of any trade, from electricians to roofer’s, can take advantage of having a commercial general liability policy for their business. Businesses involved in any kind of construction need a liability policy to cover:
If someone walks by a project site and trips over tools that belong to the contractor
If a loss arises from a project that has been completed
If the contractor damages the existing structure while they are remodeling, renovating, etc.
These policies can be as low as $900 for the year, it is more than worth it to get coverage to protect your business. Call us for a phone quote today!
What is covered on a commercial general liability policy?
Besides the typical slip and fall coverage provided on a commercial general liability policy, there are a couple of other key instances where a contractor would benefit from being covered by a policy.
Coverage for previous projects is extended for 3-5 years from the project date. This number varies by state and can be extended by endorsement all the way to 10 years if required. An example of a loss would be if a general contractor is adding a 2 car garage for a single-family home. 3 years after the project is complete, the garage falls over and crushes the 2 vehicles parked inside. It is later determined the garage fell over due to the general contractor's negligence.
Many contractors work on existing structures as the majority of their work. Unfortunately, the majority of claims come from renovations as this is when the structure is at most risk of suffering a loss. Commercial general liability policies will cover a contractor if they damage the existing structure on accident while they are working.