Did you know that a general liability insurance policy would help protect your contracting business from potential lawsuits along with other claims that can hurt your company? It may also be required as part of a contract with developers, property owners, and other contractors. In essence, general liability insurance protects your company and best interests from third party claims of property damage and or bodily injury that may occur as part of being in business. For example, general contractors and sub-contractors are required to carry this type of insurance policy.

Your clients will typically require you to show proof that you have general liability insurance in place prior to hiring your company. In addition, many contracts require contactors to provide a certificate of insurance when executing the contract. You may even need to show proof of insurance when applying for construction permits with the city or town where the work is taking place. We mentioned earlier in this article that a general liability policy covers property damage and or bodily injury claims from third parties. Let’s take a look at how that works starting with property damage.

For example, you may be renovating a client’s kitchen and happen to damage or even break their expensive kitchen table. Your general liability insurance will cover the costs to repair or replace the table. It will also cover any legal costs if your client decided to sue you for the property damage. Your insurance also covers bodily injury claims. For example, if a third-party trips over one of your ladders while visiting a job site that you’re working at, your business may be held responsible for their injuries.

Your general liability will help cover any legal fees and medical bills that the third party has incurred. It will also cover the settlement or judgment amount if you are sued in a court of law. Last but certainly not least, your general liability coverage includes personal and advertising liabilities. For example, if you make a false claim, on purpose or by accident, about another organization they will probably sue you for slander. General liability helps cover legal fees and settlement or judgment amounts.

Your insurance will also help cover any claims that are related to slander and copyright infringements. The investment in insurance depends on the location and size of your business. It’s also determined by your previous claims history and the policy limits that you have set forth.

If you own or operate a contracting business in the Commonwealth of Massachusetts than you need to ensure that you have the proper general liability insurance coverage in place. We can help you get the best deal on all of your business and personal insurance needs.  Please consult with a professional insurance agent that can answer your questions about all insurance related topics. It is important to fully understand exactly what you are buying when it comes to insurance policies.

If you have any questions, please call (508) 831-0133 to contact an associate at Zawada Insurance. We are happy to walk you through the details of your insurance policies and explain your coverage options. We look forward to helping you with all of your personal and or business-related insurance needs now and in the future.