The Importance of General Liability Insurance Coverage for Contractors

In the first half of 2021, surveys found that 31.1 million Americans, or 9.6% of the population, lacked health insurance.

One of the most important things that any contractor can have is general liability insurance coverage. It is a coverage policy that can protect you from being sued at the job site.

Plenty of businesses, large and small, need to have general liability insurance. One example is construction firms. They need to have liability coverage because of the number of worksites they manage throughout the year.

Without a general liability plan, you could be legally responsible for any damage that happens in association with your business. An injury to another person, a damaged building, or an accident in or around your machinery or equipment may all result in a lawsuit if you are not protected by general liability insurance.

Read on to learn more about the importance of insurance.

It Shows Business Maturity

General liability insurance for contractors shows that you are serious about your work and are willing to take the necessary steps to protect everyone involved. This type of insurance can help cover the cost of medical bills, property damage, and legal fees.

It Helps You Sign a Lease

A contractor who is properly insured can help themselves out when it comes time to sign a lease. This is because their agent will be able to provide a certificate of insurance to the property owner or manager which will show that the contractor has the required insurance in place. It can help contractors in negotiating a lower rate on their lease, as well as help them to avoid any potential issues that could arise if they did not have the proper insurance in place.

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It is Required by the Law

In some states, the law requires that contractors maintain a certain level of insurance coverage. This is because contractors often work on projects that pose a significant risk to the public. If something were to go wrong, the contractor could be held liable.

It Helps You Stay in Business

As a contractor, you face a variety of risks every day. From injuries that occur on the job site to damage to your equipment, there’s a lot that can go wrong. Without it, you will need to pay these costs out of your pocket, which could quickly put you out of business.

It Gives You Peace of Mind

Between juggling different job sites, managing your crew, and keeping up with the paperwork, the last thing you want to worry about is whether you have the right insurance coverage. That’s where general liability insurance comes in.

General Liability Insurance Coverage is a Must

General liability insurance coverage is important coverage for contractors to have to protect themselves from potential risks and liabilities. It is critical for contractors as it provides financial protection against risks and liabilities that could arise from contracting work. Without this coverage, a contractor could be left with significant financial burdens in the event of an accident or lawsuit.  

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