Commercial General Liability Insurance for Contractors: What You Need to Know
Policies typically offer two main structures: occurrence-based and claims-made options. The former covers incidents during active policy periods, while the latter applies when claims are filed. Contractors should assess their project timelines and client contracts to choose suitable protection.
Modern plans extend beyond basic incidents to include completed operations and advertising disputes. For example, if a finished roof leaks and damages interior walls, coverage might handle repair costs. Providers like GEICO structure general liability insurance to address physical injuries, property damage, and personal injury claims from marketing materials.
Key benefits include:
- Legal defense coverage for court fees and attorney expenses
- Financial safeguards against third-party medical bills
- Support for settlements to preserve business reputations
This type of protection helps maintain cash flow stability when unexpected issues arise. By transferring risks to insurers, companies can focus on delivering quality work without constant financial worry.
What is General Liability Insurance?
Project-focused businesses face diverse operational hazards daily. This foundational safeguard addresses financial risks arising from accidents or oversights during routine tasks. It bridges the gaps between workplace realities and legal responsibilities.
Coverage for Bodily Injury and Property Damage
When third parties suffer harm at worksites, protection activates immediately. Medical bills, rehabilitation fees, and legal defense costs fall under this umbrella. For example, if a visitor trips over loose wiring, the policy handles treatment expenses and potential lawsuits.
Material harm scenarios extend beyond physical repairs. If spilled paint ruins a client’s antique flooring, compensation covers restoration and temporary relocation costs. Loss-of-use claims also apply when damaged areas become unusable during fixes.
Protection Against Advertising and Personal Injury Claims
Modern marketing efforts carry hidden risks. An accidental trademark violation in promotional materials could trigger costly disputes. Similarly, negative online reviews might lead to defamation accusations requiring legal intervention.
