General liability insurance covers basic risks in the construction industry, like accidental damage to a client's property or a customer injury. It protects your small business from the high costs of lawsuits and helps you qualify for leases and contracts.
If a visitor is injured at your jobsite or property damage occurs during a renovation, for instance, general liability insurance can cover medical bills or the cost of repairs. This policy provides liability insurance coverage related to:
Whatever your specialty, general liability insurance can provide crucial protection against common and unforeseen risks.
If a customer trips over a tool box or a ladder while you’re doing electrical or carpentry work, you could be blamed for the injury. If the person sues, you could end up paying for medical payments and legal expenses. General liability insurance covers:
This policy does not cover employee injuries. For that, you’ll need to purchase workers’ compensation insurance.
Accidents can be costly for builders and contractors. General liability insurance safeguards small businesses when client property is damaged during construction projects.
For example, if a client’s furniture is damaged during remodeling, your general liability policy could help pay for the cost of repair or replacement. This policy can also cover the cost of a lawsuit if a client decides to take you to court over damaged property.
While advertising your company and its construction services, it’s possible to inadvertently copy a competitor’s slogan or mimic another advertising campaign. Accidental advertising injuries are covered by general liability insurance, including:
Construction businesses and contractors should make sure their contractor liability insurance includes product liability insurance, also known as products-completed operations coverage. This insurance protects your business when your finished work caused a bodily injury or property damage due to faulty workmanship.
For example, say a plumber installs a new sink in a kitchen. Two weeks later, the homeowner discovers the sink has leaked and damaged their expensive kitchen floor. This coverage would help pay the plumber's legal costs if the homeowner files a lawsuit over the faulty installation.
Any construction company that handles sensitive information, including customers' credit cards, should invest in cyber insurance. Also called data breach insurance, this coverage helps businesses recover from a data breach or cyberattack. It can help pay for:
Data breach costs can add up quickly, and a cyberattack could knock your business offline for a significant time. You can add this coverage to your general liability policy as an endorsement to gain financial protection against common cyber exposures.
If you run a small construction business or are an independent contractor, there are ways you can save on your insurance. You may be able to bundle general liability coverage with commercial property insurance in a business owner’s policy (BOP). A BOP offers more complete coverage at a lower cost than purchasing each policy separately. Businesses that are eligible for a BOP typically:
Talk to a licensed Insureon agent to find out if your construction business is eligible.
You know you need insurance for your small business, but where to start? And how can you keep costs down?
Insureon is here for you. You can get customized quotes from top carriers.
Most small businesses start with a general liability policy. You can combine property coverage with your liability insurance at a discount of $57 per month.
Maintaining a safe work environment can help you manage risk and lower your insurance costs too.
Get affordable insurance from the best carriers. Start your application now!
Insureon. Protection is peace of mind.
While commercial general liability insurance covers basic construction industry risks, it does not offer absolute protection. Other policies to consider include:
Surety bonds: These bonds reimburse your clients for financial losses if your company is unable to fulfill the terms of its contract.
Builder’s risk insurance: Builder’s risk insurance can pay for damage done to a structure still under construction, such as a fire or vandalism at a construction site.
Additional insured endorsement: This extends coverage to anyone other than the policyholder, and can be required by clients, contractors, and subcontractors depending on the project or contract.
Are you ready to safeguard your construction or contracting business with a general liability insurance policy? Insureon helps contractors find insurance from top-rated insurance companies with one easy online application.
You can also speak with a dedicated Insureon insurance agent to learn which policies might suit your business best, as well as any exclusions you might face. Once you find the right policy, you can begin coverage and get a certificate of insurance in less than 24 hours.