a Primer. Even when it's not required, it's a wise investment as health insurance plans may deny claims for work-related injuries. Similarly, depending on the project or type of construction your business performs, your city or state may also require that you meet general liability insurance requirements when seeking a permit or license for that work. The Top 10 Types of Insurance Claims Filed by Small Businesses, How to Get Insurance for Your Small Business: Smart Tips for Better Coverage, What Is Small Business Insurance? The modern office can now mean workers contributing from remote locations, increased use of mobile technology and environmental changes like having pets in the office. If a client sues your general contracting company for missing the deadline on a construction project, your professional liability policy would cover legal and settlement costs. The Hartford Financial Services Group, Inc., (NYSE: HIG) operates through its subsidiaries under the brand name, The Hartford, and is headquartered in Hartford, CT. For additional details, please read The Hartfords Legal Notice. Is general liability insurance required by law? A claim typically may be reported up to ten years following the policy period on an occurrence policy. What is the difference between a claims-made & occurrence form of coverage? It protects a company from some of the most common lawsuits related to normal business activities. Work with our lending specialists to get smart answers to all your small business questions. The higher your maximum limit, the more youll pay. Best of all, its completely free. This policy can also cover the cost of a lawsuit if a client decides to take you to court over damaged property. Our partners cannot pay us to guarantee favorable reviews of their products or services. Does general liability cover professional mistakes? No, but failing to carry general liability insurance could result in you having to pay for all the expenses related to a claim against your business. Contractor General Liability Insurance protects contractors financially from amounts they become obligated to pay due to damages or medical payments because of bodily injury, property damage or personal/advertising injury to third parties occurring during the policy period caused by or relating to the contractors work. Other policies to consider include: Workers compensation insurance: Almost every state requires this coverage for construction businesses with employees. All licensed California contractors are required to carry a $15,000 contractor license bond. For example, you might not own any commercial buildings that require property insurance, or need to cover payroll or other operating expenses. Disclaimer: NerdWallet strives to keep its information accurate and up to date. General Liability vs Professional Liability, Benefits of Commercial General Liability Insurance. United Financial Casualty Company. Each insurer is solely responsible for claims. If you want hands-on support from a professional: Although general liability insurance can protect against common risks associated with running a business, it doesnt offer complete coverage. However, this does not influence our evaluations. Browse by state. And while our site doesnt feature every company or financial product available on the market, were proud that the guidance we offer, the information we provide and the tools we create are objective, independent, straightforward and free. Limited Time Offer 70% Off for 3 Months Buy Now & Save. General liability insurance protects your business from potential lawsuits and other claims and may be required as part of a contract. All financial products, shopping products and services are presented without warranty. Not all insurance carriers utilize the same underwriting criteria to determine the premium of a policy. Progressive Advantage Agency, Inc. attempts to quote each applicant contacting us for a quote with at least one of these insurers. Answer a few questions and we'll match you with an insurance partner who can help you secure quotes. Pre-qualified offers are not binding. If additional coverage limits are required a contractor may purchase an Excess policy. On a daily basis, your company touches the lives of many people, including contractors, clients, customers and the general public. High-risk businesses can get general liability insurance in a specialty market called excess and surplus lines (E&S). This coverage would help pay the plumber's legal costs if the homeowner files a lawsuit over the faulty installation. Construction insurance vs. surety bond: Whats the difference? There are two types of general liability insurance based on what claims are covered: occurrence and claims-made. All Rights Reserved. For that, youll need to purchase workers compensation insurance. Also, the contractor risks the insurance company canceling the policy and denying coverage of a claim if the contractor fails to pay additional premium when required. The third-party is the one that has a claim against you. The injured person doesnt need to file a lawsuit to collect compensation for their medical expenses, you just need to file a claim. You can unsubscribe at any time by contacting us at help@freshbooks.com. Our opinions are our own. If you are accredited or licensed by a professional organization or are required by your state or municipality to have a business permit, you may need to show proof that you are covered by general liability insurance in order to keep your license or permit. Here is a list of our partners. If a visitor is injured at your jobsite or property damage occurs during a renovation, for instance, general liability insurance can cover medical bills or the cost of repairs. Many businesses can benefit from both coverages. All content and materials are for general informational purposes only. Unpaid additional premium required due to an audit may be sent to collections. We know that contractors face unique risks. Contractors may also be required by the owner of a project to provide a bid, performance and payment bond, often referred to as Contract Surety Bonds, on a job by job basis. Commercial general liability insurance provides businesses with comprehensive coverage for personal injury, property damage and advertising injury caused by your companys business operations, products, or employees. A contractor may owe or be owed premium based on any material changes discovered during the audit from the application responses. This information may be different than what you see when you visit a financial institution, service provider or specific products site. Your policy will cover all necessary medical expenses, including: Read about the other common forms of insurance coverage that small businesses should invest in to protect themselves from risk. It protects your small business from the high costs of lawsuits and helps you qualify for leases and contracts. Theres coverage for personal and advertising injury as well, which protects you in claims involving slander, libel or copyright infringement. Pre-qualified offers are not binding. So, even though its not required by law, it should be a priority for your business. Claims-made policies cover claims only when both the occurrence and the resulting claim happen during the period the policy is in force. To protect your property, we offer Business Personal Property coverage as a part of a Business Owners Policy. EnergyPro control of well coverage offers oil and gas companies protection from the risks associated with a well blowout. Travelers commercial general liability business insurance covers a variety of claims for damages that can result from: If it's possible that someone could claim bodily injury or property damage due to your business operations, your employees' actions or your services or products, you should have general liability insurance. The information provided on this website does not constitute insurance advice. (SPEECH)SPEAKER: What is general liability insurance? Consider a potential judgment or settlement plus the legal expenses. Discover more about general liability insurance cost, policy rating factors and money-saving tips to help you find the best combination between price and protection for your business. Whether youre meeting with clients in a store or working on a clients home, general liability insurance for contractors can help you. All rights reserved. Say a customer slips on your floor and breaks a wrist, or an employee causes damage while working in a customer's home, or one of your products injures somebody or damages their property. As a small business owner, you run the risk of a person or another business claiming you, your product or your employees caused them injury or damage and initiating a lawsuit for damages. If a customer trips over a tool box or a ladder while youre doing electrical or carpentry work, you could be blamed for the injury. The Hartford shall not be liable for any damages in connection with the use of any information provided on this page. You might be eligible to get general liability insurance, without the extra coverages in a BOP, through the Progressive Advantage Business Program. It is strongly recommended that Contractors maintain this coverage for their own protection and because contractors are often required to provide proof of such coverage to get accepted for a project. Discounts vary and may not be available in all states and situations. General liability insurance for today's unique risks. Additional underwriting criteria that may or may not be utilized includes credit score, policy age, experience and number of years the insured has not made any claims. Review our cookies information For example, bodily injury covers your business if a customer slips and falls on your premises or gets injured from a falling object. Those costs can include legal defense, judgment or settlement. General liability insurance covers: This policy does not cover employee injuries. While advertising your company and its construction services, its possible to inadvertently copy a competitors slogan or mimic another advertising campaign. Travelers offers commercial general liability insurance options that protect against the unique risks of businesses in a wide range of industries. Claims against your business for mistakes or oversights in performing a service, breach of contract, professional negligence or failure to deliver a service on time. Your rate will depend on specific features of your business. Youll need. If a claim is made against the policy, the insurance company is highly likely to conduct an audit. An insurance company will assess the following factors to determine what your commercial general liability insurance plan will cost: There are other factors that affect how much youll pay for general liability insurance, including the coverage limits of your policy. Manage my business policy, bills and claims, get certificates and submit audits. Submit claims, check status of disability or leave, and see payments. This means general liability wont cover your property or equipment against theft or damage. Businesses that are eligible for a BOP typically: Talk to a licensed Insureon agent to find out if your construction business is eligible. An occurrence may be discovered while the work is done or long after work has completed. You choose the amount of your general liability deductible when you get a quote. In the event of a loss or claim, coverage determinations will be subject to the policy language, and any potential claim payment will be determined following a claim investigation. A sunset clause would limit the reporting period, thus reducing the time frame in which a claim could be reported. The information submitted on the application, including projections for the upcoming policy term, is utilized by the insurance company to properly rate the policy based on the risk exposure. Some employers or clients might also require you to carry a certain amount of general liability before you can work for them. The cost of a policy is based upon the contractors classification, payroll, subcontractor costs, gross receipts and location. Construction insurance for 3 common contractor claims, Common questions about certificates of insurance, Defamation, both libel (written) and slander (spoken), Make less than $1 million in annual revenue. Certain contractor licenses may require a $12,500 Bond of Qualifying Individual, a $100,000 LLC Employee/Worker Bond, or a Disciplinary Bond depending on their license status.

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