Contractors Need Insurance Too
by R&I Consultants
Just as doctors need malpractice insurance to cover damages from an accident or mistake in the treating of a patient, contractors need insurance too. Called contractors’ general liability insurance, it covers damages from accidents and mistakes on job sites involving employees, clients and even bystanders. Since costs associated with disasters on the job are often very expensive, this coverage is crucial.
How does general liability insurance work? Well, these policies offer protection against claims made by third parties for injury or bodily harm, property damage, negligence and loss of life or limb. By having general liability insurance, contractors provide blanket coverage for both product and public liability.
This means that the policy covers indirect or direct actions of the insured contractor and his employees, which may result in damage or loss due to the fault in the product. Most general liability policies include both products and completed operations coverage.
Scenario: Imagine you own a company that produces knives. A certain type of knife you make is prone to breaking at the handle, causing people to severely cut themselves while using it. This means your design was negligent, making you liable for bodily injury caused to people who purchased and used it. Your product’s liability coverage would protect you against the ensuing lawsuits.
Scenario: Imagine you own a company that builds homes. You built a two-story home with a staircase to the second floor. If someone viewed the home for a potential purchase, walked up the stairs, grabbed the railing that gave way, fell and broke his hip, you would be responsible for the faulty construction. You would be entirely liable for the resulting bodily injury. Though, since the house was fully built, this would be considered a completed operation. You would have coverage for the damages resulting from this claim.
So, whether you are a doctor or contractor or even a knife maker or home builder, you need general liability insurance! To learn more, speak with one of our commercial insurance consultants today. Just call 404-459-5975. Also, be sure to visit Risk & Insurance Consultants online.