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How to Reduce Risk on Your Job Sites with Proper Contractor Liability Coverage?

Thu, 30 Apr 2026 09:47:04 GMT

Understanding Contractor Liability Coverage

Managing risk on construction job sites is a constant challenge that requires careful planning, strict safety protocols, and strong financial protection strategies. From property damage and workplace injuries to third-party claims and project delays, contractors face a wide range of potential liabilities every day. Even with the most experienced crews and well-executed safety procedures, unforeseen incidents can occur, leading to costly legal disputes and financial setbacks. This is where proper contractor liability coverage becomes a critical component of risk management, offering a safety net that protects both operations and long-term business stability.

Understanding how to reduce risk through the right insurance coverage is essential for contractors aiming to maintain compliance, protect assets, and build trust with clients. Liability coverage does more than cover damages; it strengthens credibility, supports business continuity, and ensures preparedness for unexpected situations. By integrating comprehensive insurance policies with proactive risk management practices, contractors can significantly minimize exposure to financial and legal risks. This blog explores practical strategies, coverage insights, and expert approaches that help create safer, more resilient job sites while supporting sustainable business growth in a competitive construction environment.

What Contractor Liability Coverage Includes

Contractor liability coverage is designed to protect against claims arising from property damage, bodily injury, and operational risks associated with construction activities across various job site conditions. This coverage typically includes general liability insurance, completed operations coverage, and products liability protection for contractors. Each component plays a crucial role in safeguarding contractors from financial losses resulting from accidents or negligence claims during projects.

General liability insurance addresses third-party injuries and property damage that occur during active operations on construction sites daily. Completed operations coverage extends protection even after a project is finished, ensuring claims related to workmanship defects are covered effectively. Together, these policies create a comprehensive shield that supports business continuity and long-term financial protection for contractors.

Why Coverage Is Essential for Risk Reduction

Without adequate liability coverage, contractors face significant financial exposure in unpredictable and high-risk construction environments every single day. Legal fees, settlement costs, and repair expenses can quickly escalate, putting projects and business operations at serious financial risk. Proper coverage ensures that unforeseen incidents do not derail financial stability or disrupt ongoing construction timelines and commitments.

Additionally, many clients and project owners require proof of insurance before awarding contracts for construction work. Having robust liability coverage not only reduces risk but also enhances credibility, making it easier to secure high-value projects and long-term partnerships consistently.

Identifying Common Job Site Risks

Leveraging Claims Management and Documentation

Customizing Coverage for Specific Projects

Proper training ensures that workers understand safety procedures and operational standards required for maintaining safe and compliant construction job sites. Regular safety meetings, certification programs, and compliance audits help maintain a high level of awareness across job sites consistently.

Insurance providers often assess safety records when determining premiums for contractor liability coverage policies and risk evaluations. By maintaining strong safety performance, contractors can benefit from lower insurance costs while reducing the frequency and severity of claims significantly. This proactive approach strengthens both operational efficiency and long-term financial protection strategies.

Aligning Coverage with Safety Protocols

Integrating Insurance with Safety Practices

Insurance should not function as a standalone solution; it must align with on-site safety practices implemented consistently across all job sites. Implementing strict safety protocols, such as regular equipment inspections, employee training, and hazard communication systems, reduces the likelihood of incidents significantly.

When safety measures are integrated with liability coverage, contractors create a dual-layered approach to risk management that strengthens overall protection. This not only minimizes claims but also demonstrates a commitment to workplace safety, which can positively impact insurance premiums over time.

Training and Compliance Strategies

Subcontractors and vendors play a significant role in construction projects, but they also introduce additional liability risks that must be managed carefully. Ensuring that all subcontractors carry their own insurance coverage is a critical step in reducing overall project risk exposure.

Requiring certificates of insurance and including indemnification clauses in contracts helps transfer certain risks away from primary contractors effectively. This layered approach to coverage ensures that all parties involved share responsibility for potential liabilities, reducing overall exposure significantly.

Addressing Subcontractor and Vendor Risks

Not all construction projects carry the same level of risk, as project size, complexity, and environment vary significantly. Residential projects, commercial developments, and infrastructure work each present unique challenges that require different levels of insurance protection. Customizing liability coverage to match project scope ensures adequate protection without unnecessary expenses or coverage gaps.

For instance, large-scale commercial projects may require higher coverage limits due to increased exposure and higher potential risks. Smaller residential jobs may need more targeted policies that address specific risks without excessive coverage costs. Evaluating project-specific risks allows contractors to select appropriate coverage levels that align with operational needs.

Tailoring Policies to Project Scope

Long-Term Benefits of Proper Liability Coverage

Financial Stability and Business Growth

Investing in comprehensive liability coverage provides long-term financial security and stability for contractors operating in competitive construction markets. By reducing exposure to costly claims, contractors can allocate resources more effectively and focus on growth opportunities confidently.

Strong insurance coverage also supports business expansion by enabling contractors to take on larger and more complex projects with confidence and assurance. This stability is essential for maintaining competitiveness in a demanding and ever-evolving construction industry environment.

Clients and stakeholders value contractors who prioritize risk management and financial responsibility in all aspects of construction operations. Proper liability coverage demonstrates professionalism and reliability, which can lead to repeat business and positive referrals over time.

A strong reputation for safety and accountability enhances market positioning, making it easier to establish long-term partnerships with clients and stakeholders. Over time, this trust becomes a valuable asset that contributes to sustained success and business growth.

Building Trust and Industry Reputation

Dedicated Insurance Experts Strengthening Contractor Business Security

Reducing risk on construction job sites requires a balanced approach that combines proactive safety measures with comprehensive contractor liability coverage. From identifying potential hazards and aligning insurance with safety protocols to customizing policies and managing claims effectively, each step plays a critical role in minimizing exposure to financial and legal risks. Proper coverage not only protects against unforeseen incidents but also strengthens operational resilience and supports long-term business growth.

Contractors who prioritize risk management through well-structured liability coverage gain a competitive advantage by ensuring compliance, enhancing credibility, and building trust with clients. This strategic approach creates a safer working environment while safeguarding financial stability, making it an essential component of successful construction operations.

Choosing the right partner for insurance solutions is equally important in achieving these goals. Elite Contractors Insurance Services, based in San Diego, California, brings 16 years of industry expertise in delivering tailored insurance solutions for contractors. With a deep understanding of construction risks and coverage requirements, we provide reliable guidance and comprehensive policies designed to protect job sites and businesses alike. Our commitment to quality service, risk management excellence, and client-focused solutions ensures that contractors receive the support needed to operate confidently and securely in a challenging industry landscape.

What Contractor Liability Insurance Covers and Why Every Builder Needs It?

Fri, 27 Mar 2026 12:11:13 GMT

Understanding Contractor Liability Insurance

Construction is an industry built on precision, planning, and risk management. Despite careful preparation, unexpected events can occur at any stage of a project, ranging from minor mishaps to significant accidents that cause property damage, injury, or financial loss. For builders, contractors, and construction professionals, these risks are not just potential setbacks—they can threaten the stability of operations, reputation, and long-term growth. Understanding the protections available through contractor liability insurance is crucial for anyone operating in this field.

Contractor liability insurance offers a financial safety net that addresses multiple layers of risk. It shields against claims arising from property damage, bodily injury, and other liabilities that may occur during the course of a project. Beyond compliance with legal requirements, this coverage provides confidence to engage clients, subcontractors, and partners, knowing that unforeseen issues will not compromise professional commitments. In an industry where one accident can translate into thousands of dollars in expenses, contractor liability insurance is not optional—it is an essential safeguard that ensures continuity, protects assets, and strengthens trust with stakeholders.

What It Is

Contractor liability insurance is a specialized policy designed to protect construction professionals from financial losses resulting from third-party claims or unforeseen incidents. This includes accidents or damages that occur on the job site, during project execution, or even in relation to completed work. Unlike general business insurance, contractor liability policies specifically focus on the unique risks faced by builders, remodelers, and trade specialists, offering tailored coverage that aligns with the realities of construction projects in today’s demanding industry environment.

Types of Coverage

General Liability Insurance – Covers bodily injury, property damage, and personal injury claims caused directly by operational activities. For example, if a passerby is accidentally injured by falling debris, this coverage handles medical costs, legal defense, and related settlement expenses efficiently.
Professional Liability Insurance – Protects against claims related to design errors, planning mistakes, or negligence in professional services. This coverage is critical for contractors offering design-build, consulting, or project management services.
Product and Completed Operations Insurance – Addresses claims arising even after a project is finished, such as a defect causing property damage or injury. It ensures that contractors are protected for long-term consequences tied to work performance.

Why It Matters

The construction environment is inherently dynamic, with unpredictable hazards like heavy machinery accidents, electrical mishaps, or structural failures occurring at any moment. Liability insurance ensures that financial responsibilities from such events do not fall entirely on operational funds, preventing costly project delays, reputational damage, and potential legal complications.

Core Protections Provided by Contractor Liability Insurance

Financial and Operational Benefits

Risk Mitigation Beyond Insurance

Clients increasingly demand proof of contractor liability insurance before signing contracts, emphasizing professionalism and accountability.

Enhanced credibility: Clients are more confident in hiring contractors with verified, up-to-date insurance coverage.
Competitive advantage: Insurance can differentiate services and build trust in a crowded, competitive construction marketplace.

Legal Compliance

Regulatory and Contractual Requirements

Many jurisdictions require contractors to carry liability insurance to obtain licenses, permits, or project approvals. Compliance ensures eligibility to bid on projects and operate legally without risk of penalties.

Building permits: Liability coverage may be a prerequisite for securing permits and official approvals.
State and municipal requirements: Coverage amounts often vary depending on project size, scope, and potential risk exposure.

Client Expectations

While insurance provides financial protection, reducing risk at the source remains essential to overall operational efficiency. Implementing robust safety protocols can:

Lower claim frequency through proactive prevention
Improve workforce efficiency and performance reliability
Strengthen client trust by demonstrating commitment to safe practices

Examples include regular equipment inspections, safety training programs, and standardized job-site procedures tailored to the specific risks of each project.

Safety Protocols

Continuous Policy Review

Construction projects evolve rapidly, and so do associated risks. Periodically reviewing and updating insurance policies ensures adequate coverage for:

New types of projects, expanded services, or specialized work
Changes in workforce size or subcontractor involvement
Shifts in legal, regulatory, or contractual requirements

This proactive approach prevents coverage gaps that could result in denied claims or unexpected financial exposure.

Liability insurance also protects contractual obligations when collaborating with subcontractors, preventing disputes over responsibility for claims. Clear insurance policies ensure subcontractor-related incidents do not become the primary contractor’s financial burden, preserving operational stability and long-term business continuity.

Subcontractor Agreements

Accurate records of project plans, change orders, inspection logs, and daily site reports can significantly minimize liability exposure. In case of a claim, thorough documentation helps demonstrate adherence to safety standards, contractual obligations, and professional best practices.

Documentation and Record-Keeping

Common Challenges and Misconceptions

Underestimating Coverage Needs

Contractors sometimes assume minimal coverage is sufficient, leaving substantial gaps in protection, particularly on high-risk or large-scale projects.

Solution: Assess project scope, potential liability exposure, and legal requirements to determine adequate coverage levels before starting work.

Some perceive insurance premiums as excessive, yet the cost of an uninsured claim far outweighs regular policy payments. Balancing affordability with comprehensive protection ensures long-term financial health and operational stability.

Premium Costs vs. Risk Exposure

Understanding the distinctions between general, professional, and completed operations liability is essential. Overlooking any coverage type can result in denied claims or uncovered risks.

Example: A builder may have general liability coverage but lack completed operations coverage, leaving post-project defects financially unprotected.

Confusing Liability Types

Best Practices for Contractors

Reliable Protection Solutions Crafted for Construction Professionals

Contractor liability insurance is an indispensable tool for builders, providing protection against property damage, bodily injury, legal expenses, and post-project claims. Beyond safeguarding financial resources, it enhances professional credibility, ensures regulatory compliance, and supports long-term operational stability. Effective risk management combines comprehensive insurance coverage with proactive safety protocols, accurate documentation, and regular policy reviews.

Elite Contractors Insurance Services in San Diego, California, brings 16 years of expertise in delivering tailored insurance solutions for the construction industry. Our focus is on protecting builders from unforeseen liabilities while providing clarity, confidence, and peace of mind. By partnering with Elite Contractors Insurance Services, it becomes possible to navigate complex projects knowing that financial risks are mitigated and professional reputation is safeguarded. We pride ourselves on understanding the unique challenges of construction operations and delivering insurance solutions that enable growth, continuity, and success for contractors at every stage of their business journey.

Reliable Protection Solutions Crafted for Construction Professionals

Contractor liability insurance is an indispensable tool for builders, providing protection against property damage, bodily injury, legal expenses, and post-project claims. Beyond safeguarding financial resources, it enhances professional credibility, ensures regulatory compliance, and supports long-term operational stability. Effective risk management combines comprehensive insurance coverage with proactive safety protocols, accurate documentation, and regular policy reviews.

Elite Contractors Insurance Services in San Diego, California, brings 16 years of expertise in delivering tailored insurance solutions for the construction industry. Our focus is on protecting builders from unforeseen liabilities while providing clarity, confidence, and peace of mind. By partnering with Elite Contractors Insurance Services , it becomes possible to navigate complex projects knowing that financial risks are mitigated and professional reputation is safeguarded. We pride ourselves on understanding the unique challenges of construction operations and delivering insurance solutions that enable growth, continuity, and success for contractors at every stage of their business journey.

Why has my surety bond increased?

Thu, 30 May 2013 07:35:18 GMT

Your Credit Score Has Changed–For the Worse

Why has my surety bond increased?” It’s frustrating when your bond increases – but there are usually specific reasons why you’ve seen an increase in your bond. Instead, your credit, contract history, or public records may be factors that have upped your bond. Here are the four most common reasons most contractors’ surety bonds go up.

Adverse Items on Your Public Records

Adverse items on your public recor ds can count against you when it comes to your surety bond, whether or not they affect your credit score. These items can include:

Unpaid tax liens
Civil suit judgments
Wage attachments
Collection items
Unpaid or past due accounts
Bankruptcy

Unfortunately, you don’t have to have an actual judgment against you or your business in order to see the price of your bond go up. If there is currently an open claim or suit concerning a different surety bond, it will likely to affect the one you’re getting now.

While this can seem unfair, keep in mind that in some cases contractors with open issue can’t get a surety bond at all. Until the issue is resolved, you will need to handle the fact that you are temporarily considered “high risk” for new bond.

You Have Open or Unresolved Bond Claims

Your FICO score (or that of whoever signs as the personal indemnitor) is the largest single factor when it comes to the price of your surety bond. If that comes as a surprise, it may be time to check your credit score.

If your credit score has taken a hit when it shouldn’t have, it’s a good idea to review your credit reports for any errors. You might have become the victim of identity theft or credit theft. Or (more likely) someone has simply made a mistake on your score. You can correct these errors by writing the credit review services with details and proof of your real credit history.

Then again, there could be legitimate reasons your score has gone down. If that’s so, talk with your bank about improving your credit score. Your bank may be able to help you raise your score, and will be more reliable than independent “credit repair specialist.” On time payments and a low debt to limit ratio are a good foundation for a strong credit score.

Your credit isn’t the only thing that affects your surety bond, however. Even if your FICO score looks good, other items can affect what you’ll be required to pay.

You Have License Complaints on Your Contractors License

This is another factor that may increase the price of your bond. It’s true that many of these complains can seem (and often are) frivolous. But swatting at them like gadflies is not the best way to deal with them—tempting though it may be.

Even if a complaint seems frivolous or even vengeful, it can affect you financially if it sticks. That’s why it’s important to treat every complaint as though it were a serious one, and do your best to see it resolved. While it may seem like a pain to deal with, doing so can save you a lot of money when it comes to your next surety bond.

How to Get Contractors Insurance in California in 3 Easy Steps

Tue, 28 May 2013 07:39:18 GMT

Decide on a Baseline Coverage Amount

How can you get the best contractors insurance in California for your business? It’s not difficult—but it’s also not as simple as picking out an agency and paying for a policy. You should consider (and maybe reconsider) the amount of coverage you need, as well as the kind of coverage you need. It’s also important to make sure you’re working with the right agency.

Here’s how to be sure you’re getting the right contractors insurance for your needs.

Decide Your Other Needs

It goes without saying that you’ll need general liability coverage. But that only covers the most basic of your needs.

You’ll also need a California surety bond if you’re dealing with a public construction contract. Many private construction contracts require a surety bond, as well. Your personal auto policy may not cover your business needs if you’re working on a commercial job, since most private policies don’t cover the amounts needed for commercial jobs ($1,000,000 or more).

You may also need Builder’s Risk insurance, a license bond, or one of several other types of coverage. An experienced California contractor insurance agent is your best bet here.

A lot of people focus on price when it comes to California contractors’ insurance. And although price is important, it’s not the only important factor. In addition to a good price, it’s also important to find an agent who knows the ins and outs of your industry, who knows what you need (and don’t need) to stay safe, and who has access to plenty of the right carriers.

It’s essential to find an agency that specializes in contractors’ insurance, instead of just a general agency that claims to offer what you need. A specialty agency will have access to plenty of insurance carriers so that you can get the best deal on the most thorough coverage. They’ll also have good relationships with other clients, contractors, and the industry in general, which will help them serve your needs a magnitude of order better than a general agency.

Even among specialty agencies, some may be better suited to your needs than others. One may have more of the right connections, or you may just have a better gut feeling about your agent. Look for agents that specialize in California contractors’ insurance, and then decide which one is right for you.

There you have it! With these three steps, you can make sure that you’re finding the right California contractors’ insurance policy and provider for you.

Shop Around for Your California Contractors Insurance

One thing many inexperienced contractors don’t fully appreciate is that your policy should cover more than just the size of your project. It’s easy to assume that a $20,000 contract needs exactly $20,000 worth of coverage—no more, no less.

The thing you have to keep in mind is that someone who doesn’t appreciate the $20,000 job you did, might easily claim $200,000 in damages. So it pays to have a thorough policy.A good rule of thumb is to add up everything your company is worth, and take that as a baseline figure when it comes to a contractor’s insurance policy. You need more than that amount, but you should never purchase less. Not even for a small job.

California Surety Bonds: Why is my personal credit a factor?

Tue, 16 Apr 2013 07:49:05 GMT

Why:

We get asked a lot, “Why does my personal credit determine what I pay? I’ve never had a claim!” I agree with you, there should be some way that you’re bonding claims history can be pulled and used for your future California Surety Bond. We’re hoping in the future this will become a factor. From an agency standpoint we have no say in how carriers determine their pricing. However, I can explain why your personal credit is used and how we can help.

How we can help:

Whether you’re looking for a Contractors License Bond, California Contractor Bonds, Performance Bond, Motor Vehicle Dealer Bond, or Talent Agency Bond we have the right markets for you. Our agency has access to several surety companies…and the ones you can’t find on Google or gain access to directly. When you submit a quote request to us we really do shop for you and offer you the best price out there. We can usually offer a payment plan as well. Here is what’s even better; we shop your California Surety Bond every year at renewal as well so you don’t have to. You can be assured every year that you’re paying the best price. So stop calling around and submitting as many quote requests as possible. We can offer in California, Arizona, Nevada, Washington and Oregon. Click here for your free, no obligation quote.

Here’s the thing about California Surety Bonds , they are not like insurance. When you have a valid claim against your bond yes the carrier pays it. However, you are obligated to pay the carrier right back. It’s surprising how many people do not know this. When someone has good credit they are more likely to pay back money they owe. When someone has a history of not paying back debts they’re more likely to not pay back newly incurred debts. The carriers are aware of this and definitely take this into consideration.

Contractor’s Insurance Mistakes – 4 Biggest Mistakes

Tue, 16 Apr 2013 07:46:38 GMT

Failure to Purchase Enough Coverage

Getting contractor’s insurance may seem like a simple enough task at first. After all, you buy a solid general liability and worker’s comp policy, and then you can get down to business—right?

Unfortunately, this kind of thinking can leave you in massive debt, or even put you out of business! It’s a common problem that far too many contractors find themselves in. They rely on the basics and end up paying the price. Even if you only need minimal coverage, there are still aspects to the insurance coverage process that you’ve got to face.

Whether you’re buying a new policy or just shopping around for a great contractor’s insurance rate, here are four mistakes to avoid.

Thinking Your Contract is Insurance Enough

Your contract spells out a lot about your responsibility during a job – but it’s far from complete protection, especially if there are unforeseen events or negligence on the part of your client.

In a perfect world, your contract would be enough. But we live in a world with lawyers, and that means your contract could be interpreted in ways you never imagined. That’s why it’s important to have a policy that covers a variety of claims.

Buying a contractor insurance policy isn’t a one time thing! Your insurance needs will change as your business changes, and so should your policy. Many contractors drag their feet when it comes to changing their policies, and with so many insurance agencies that seem more like government bureaucracies than business partners, it’s easy to understand why.

But a good agency can work with you over time to easily change your policy as your business changes. They are often able to get more favorable payment terms or discounts for long-term customers. This is one reason it’s a good idea to find a good insurance provider and stick to them, instead of pricing new agencies every year or for every project.

You may want to consult with your agent when:

You add or drop a significant number of employees.

You gain or get rid of equipment, space, or other assets.

You have finished several months or years of work on a long-term contract.

You are about to take on significantly different types of jobs than in the past.

Your business changes operating structure, ownership structure, or other important legal structure.

Failure to Review Your Policy Regularly

Contractor’s license bonds are required by the state of California in order to have an active license, but many contractors stop there.

“I probably won’t need it, so why bother?” is a common, often fatal attitude towards any additional type of insurance. The reason to bother is because you just might need it–and it’s a lot less expensive to spend a few dollars on the front end than tens of thousands later on.

For example, you might assume that tools are part of your general liability policy – but they aren’t covered. Considering the expense of most contracting tools, it’s important to have them covered properly. In addition, getting a commercial auto policy is an essential if you’re operating on a commercial contracting job.

Depending on your unique situation, there may be other essentials to consider as well – and a good insurance service can tell you more.

Failure to Understand Your Policy Exclusions

All policies have exclusions, and you need to know what your exclusions are – and get changes made before going further, if need be. This is another important area where an experienced, long-term agent can help you. It’s better to know the terms up front and prepare for the worst than be surprised when you need to execute your policy terms.

No project ever goes entirely how it should. By making smart choices with your contractor’s insurance – and finding the right insurance service that knows the contractor industry – you’ll be safe against any curve ball your project may throw at you.

California Contractors Insurance Service : What to Look For

Tue, 16 Apr 2013 07:42:11 GMT

A Specialty in Contractor’s Insurance

On the hunt for a California contractor’s insurance provider ? A good contractor’s insurance agency should meet several requirements if you want to make sure they can meet your needs.

Here’s what to look for so you don’t get stuck with a general agency trying to do the job of a contractor’s agency.

Long Term Experience in the Field

The agency itself doesn’t have to be old, but someone in a key position (preferably the owner) should have plenty of experience working with contractors. Contracting is a unique business with special insurance needs. If an agency or owner has long term experience in the field, they’ll be up to date on industry trends, understand the types of jobs or clients you’ll be working with and know how to find the best match.

A California contractor’s insurance agent may be able to provide pointers that a more general agency might not. A provider with plenty of experience in the field has cultivated relationships with other clients, contractors, and insurance carriers. He or she can see where you fit into the big picture, which helps them better serve your needs.

A good California contractor insurance service knows that contractors deal with unique situations – and insurance needs – every day. That’s why it’s so important to find a service that can find you customized coverage plans that give you exactly what you need. One size fits all doesn’t work for complete contractor coverage.

There are dozens of specialized situations that require unique California contractor’s insurance coverage plans. For example, you may be working on a commercial property, which requires a different approach than if you’re working on a residential home. Your equipment, your tools, your employees and even your clients can determine what type of coverage you need – and many of these factors change between jobs.

Working with a California contractor’s insurance service that has specialized experience, in depth knowledge of the industry and can provide customized plans is the best way to make sure you’re covered completely.

Customized CA Coverage Plans

A lot of general service insurance providers offer contractor’s insurance – but that doesn’t meant that they’ll be the best fit for your needs. At best, they’ll be selecting from a short list of policies that they’ve offered other contractors and at worst they might pair you with incomplete coverage.

A specialized agency will know the ins and outs of contractor’s coverage – from what constitutes the best coverage to where to get it. They will be familiar with several different carriers and know how to get the best coverage for your needs at the lowest possible price. They’ll understand that you need to get to work as quickly as possible, and don’t have weeks to pick out a policy. They can help streamline the process for you so you save time and money.

You Have License Complaints on Your Contractors License

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

Mon, 08 Apr 2013 07:51:49 GMT

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

“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.

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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