Reasons Why Contractors Need General Liability Insurance

27
March 2018
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In the high risk construction industry, you need all the protection you can get. An injury, accident, or other unexpected event can put the well being of your business in peril. Whether it’s high costs from medical bills, court costs, settlement fees, or work time lost, paying out for an accident could be the thing that puts you out of business.

So how do you protect yourself?

Every contractor needs general liability coverage, a foundational policy that protects your business from the biggest risks you face in the industry.

Here’s why.

Accidents Can, and Will, Happen in the Construction Industry

You watch in horror as your employee accidentally backs your work truck into your client’s garage door. To your ears, the crunching of metal and breaking glass might as well be the ringing of a cash register.

A client doesn’t watch where he’s walking and trips over your drill box, spraining his ankle. He may be seeing red but all you see is money signs.

Costs for repairing damaged property or medical bills can add up quickly. Will your business be able to withstand paying out to a client when an accident occurs?

Why take the gamble?

Contractor general liability coverage will give you peace of mind knowing that you’re protected when the unexpected strikes.

General liability insurance provides coverage if you or your employees are involved in an accident that results in third-party damages or injury.

Protect Your Business Assets

You’ve worked hard for your money. The last thing you want to do is hand it over to a bunch of lawyers if the unexpected happens.

Lawsuits can be brought against your company for any number of reasons, valid or not.

Even if you have done nothing wrong, the mounting costs of a legal battle can be devastating to your business’ bottom line. From lawyer fees, judgments, court costs and settlements to work time missed, paying to defend your business can put your assets at risk.

Many contractors are sole proprietors of their small construction businesses, which adds another layer of risk to a third-party lawsuit. If you’re a sole proprietor of your business, it means that your personal assets are on the line if your business is involved in a lawsuit.

Will your business be able to survive the cost of a lawsuit, should one be brought against you? Could you get back on your feet if you had to pay tens or even hundreds of thousands of dollars for one single third-party incident?

Most can’t.

While contractor general liability is there to protect your assets against the bad times, it also has an added benefit that could help you get more business, too.

Win More Contractor Bids

Clients have a lot to consider when choosing a contractor for their project. Whether it’s a new build, an addition, or a remodel, embarking on construction project is a daunting undertaking.

Your remodel client may be feeling overwhelmed with having plans drawn, securing the funds, and choosing the right contractor for the job. During this arduous process, anything that alleviates some of their concerns will stand out and make a big difference to potential clients.

Probably the most difficult part of the process is choosing a contractor. When considering all the bids, it can be overwhelming to choose who will oversee a project that you’ve already poured time and money into laying the groundwork for.

One thing that can give your business the edge in that critical moment is proof of general liability insurance.

Knowing that your business is covered in case of any unforeseeable accidents or issues will make yours the more desirable bid when you’re up against a competitor who doesn’t carry general liability insurance. Having proof that you’re licensed, bonded, and fully insured shows that you’re the professional for the job.

Building a business in the construction industry is a lucrative endeavor for those with the a contractor’s highly specialized skill set. Protect your hard-won assets and keep business moving forward with general liability coverage.

 

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