As a general contractor, you will be entrusted with important jobs in and around a job site. You must take on a certain amount of liability as part of your job.
However, you do not want the consequences of this liability to come out of your own pocket. You can save your personal finances and your reputation as a general contractor by investing in contractor liability insurance.
Covering Product Damage
When a construction company hires you as its general contractor, it may entrust the safety and integrity of its building materials to you. You must ensure that the materials stay safe and dry. You also must ensure that they do not get stolen off the job site or out of the storage facility where you keep them.
If they get damaged or stolen, it could fall to you to replace them, particularly since you were entrusted to take care of them. Instead of replacing them out of your own bank account or that of your general contracting business, you can buy a contractor liability insurance policy. The construction company owner can make a claim against this policy and have the money to replace the damaged or stolen building materials paid for by it.
Paying for Job-Related Accidents
As a general contractor, you also will be tasked with hiring subcontractors to work for the construction company that hired you. The construction company's owner may stipulate in their subcontracting contracts that they and their company are not liable for injuries or accidental deaths. Instead, the contract may stipulate that you, as the general contractor, incurs the liability of paying for such incidences.
When you invest in contractor liability insurance, you can have monetary protection in place if a subcontractor that you hire gets hurt or killed on the job site. You avoid having to take on those financial liabilities on your own. Your insurance policy can pay out damages to the injured contractor or any survivors that they behind, if they are killed.
Finally, your contractor liability insurance can pay for damages to neighboring properties that may occur during projects. You can compensate other property owners for any damages that you or your subcontractors accidentally cause during the course of your work.
Contractor liability insurance serves several purposes. It pays for stolen or damaged building materials, contractor accidents, and damages to properties. Contact an insurance agency that offers contractor liability insurance to learn more.Share