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3 Reasons Why Contractors Should Carry General Liability Insurance

As an owner of a construction company, it is essential to know the three reasons why it’s important to carry liability insurance for California contractors as their work is inherently filled with different kind of risks. The coverage helps in protecting the contractors from paying a considerable amount of fees arising from property damage, injuries and any other type of incidents that takes place in the construction site. Hence the right kind of insurance policy and coverage is essential for the protection of the contractors when they are working on any custom project as the general liability insurance provides coverage for lawsuits relating to customer property damage as well as customer injuries.

This insurance is essential for the contractors as they also face the risk of being sued and they can also be held responsible for any damage during their course of work. It also protects the contractors financially so that they will not have to bear the extra expenses when someone sues them for any professional or personal reasons.

Protecting Your Construction Business

This is the most important reason because the contractor insurance policy helps in safeguarding the contractor as well as his company from any lawsuits filed by its customers or clients. Whether the trials are due to advertising injury, physical injury or damage to client’s property, the insurance will help in covering the legal fees while compensating for the losses that are the result of a lawsuit. With the rising costs of lawsuits and court expenses, it is essential to look for insurance that can protect contractors from any legal proceedings and expenditures.

Protection from General Liability

Since construction work involves a lot of risks; the contractors need to have public liability insurance as the insurance will compensate them for litigation fees arising when someone gets injured in the construction site.

The protection is also vital for covering the damage claims of the customer property or in a case when the property becomes unusable due to the negligence of the contractor. This also includes the product claims where the contractor will get an insurance claim when the customer has sued him for damaging any valuables or property with the use of an inferior quality product at the construction site.

Protection from Bodily Injury Claims

Working in a labor-intensive industry is a highly risky venture, and the contractors are subjected to bodily injury claims that might take place even after being careful with their
work. The general liability insurance is vital for the contractors because it can help them in instances when someone meets with an accident due to the fault or negligence of the contractors. Moreover, the insurance policy can be of great relief for the contractors because it also compensates them for the medical expenses when any third party gets injured in the construction site. Therefore it is essential that the contractors be extra careful while working in any third party’s site so that there will not be any case of injuries or accidents.