Contractors Liability Insurance: Why you can’t Afford to go Without it

“I do quality work and have never had a claim; I don’t need General Liability Insurance”. I’ve heard this countless times. Did you know insurance doesn’t cover faulty work? Comprehensive General Liability (CGL) insurance policies are designed to protect the insured from liability for injury or damage to the persons or property of others, not to pay for repairing or replacing the insured’s defective work and products. To suggest otherwise would encourage shoddy workmanship.

Let’s face it, there are several reason a claim could be filed against you at any time and even for work you’ve completed several years ago. “Really?!”, you ask. It’s the truth but we’ll tackle that another time. Today, I’m actually only going to give you one reason you really shouldn’t go without coverage. Trust me, it’s a good reason and the number one reason why I tell contractors to obtain coverage or keep their current policy in force.

We’ve all had that client at some point and time whom you just can’t seem to make happy. You may have done everything by the contract for this person but for whatever reason they aren’t happy. With our “sue happy” economy this usually ends up in a lawsuit. If you’ve experienced this client first hand consider yourself lucky if this did not end up in a lawsuit.

What’s the Result of Not Having Adequate Contractors Liability Insurance Coverage?

Here’s what happens when this does end in a lawsuit: You hire an attorney and go to court to prove you did nothing wrong. If you’re lucky enough to escape this without extreme financial hardship you lucked out. With attorney fees averaging $300 per hour you can imagine how your attorney bill could spiral out of control.

Here’s what happens when you have insurance: You submit the lawsuit to your insurance agent/carrier. They handle it from there. Period.General Liablity Insurance

I recently saw a claim where the total amount paid was $32,700. Of that amount $25,000 was spent on legal fees. The claimant received $3,800. Crazy right? Hopefully you see where I’m going here. You really can’t afford to go without general liability insurance. When the average policy is under $1500 this is really something you should be considering.

Your business is important and needs protection. I suggest getting an insurance quote and figuring out how to budget this very necessary expense in. If you’re a serious business owner and care about the future of your business I wouldn’t wait another day to obtain insurance. Get a free, no obligation contractors liability insurance quote from us today. Protect yourself. Protect your business.

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