LIABILITY INSURANCE

General liability insurance is the most common type of insurance requested by business owners.  Sometimes referred to as public liability insurance – it covers and protects the policy holder from dangerous exposures such as accidents that occur on or off the business property.  What liability insurance does not cover are intentional acts of false advertising or other criminal acts resulting in damages to third parties.

We know that the process of construction is arduous and it involves arranging for raw materials; hiring specialized tradespersons who undertake activities like plumbing, bulldozing, masonry and carpentry and managing the overall work flow. The company who employs these sub-contractors is known as the general
contractor.

General Liability Insurance for Contractors
Although contractors can bid for work without having liability insurance, it is not advisable because – what are you in for if a third party makes a claim? The liability insurance protects the contractor from accidents, contractual liability, and law suits that may result from contracted work. Therefore a general contractor needs to
be equipped with liability insurance that provides protection against claims with regard to property damage, personal injury or negligence.

Usually, a general contractor is not responsible for the subcontractor’s mistakes but attorneys have found loopholes that allow them to sue the general contractor for negligence. The cost of contractors’ liability insurance varies depending upon the level of risk, the nature of work, the payroll expenses, the gross receipts of the company and the amount of coverage required. The contractor is required to make a down payment for general contractor liability insurance, and follow it up with 9 or 10 consecutive monthly payments. Your insurance company needs to assess the financial strength of the companies as frequently these companies have ceased to operate due to inadequate financial strength, competitive forces, or changing market place dynamics.

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