What Does Contractor’s Liability Insurance Cover?

What Does Contractor’s Liability Insurance Cover?

February 13, 2019

What Does Contractor’s Liability Insurance Cover?

 

If you’re a construction, hardscaping, or home improvement professional operating as a contractor, you probably already know that liability insurance is required in most states to legally operate your business. General liability insurance in California may not be required by law, but it’s still an essential tool that every contractor or sub should have on-hand at all times to keep himself or herself financially protected in the event that something goes wrong on a job site. Liability insurance can also be extended to cover your employees as well as any products that you manufacture.

Contractor’s liability insurance covers legal expenses and court-ordered fees if you or your business is sued for a medical injury or property damage issue caused by you or your work. For example, if you incorrectly install a set of stairs for a homeowner and a member of the homeowner’s family then falls and injures himself or herself on the stairs, the homeowner may sue you for the cost of the family member’s medical bills as well as the cost of a replacement set of stairs to correct the damage that you caused.

Unfortunately, if your contracting business is sued, you’ll have to pay for legal representation and potentially settlement costs and damages even if you are not found liable by a court. If you have contractor’s insurance, your insurance provider will help you cover these costs and keep your business running. If you don’t, you’ll probably be stuck with a hefty bill—even if you’ve done nothing wrong. Even the most experienced professionals should purchase and maintain general liability insurance for contractors in California and other states to protect themselves financially and legally against frivolous claims and lawsuits.

Are you still searching for the right contractor liability insurance policy? DJM Insurance Services is here to help! Give us a call today or browse our website to learn more about your coverage options.