General Liability Insurance For Contractors – Commercial general liability insurance (CGL) is a policy that provides business protection against bodily injury, personal injury, and property damage caused by the company’s operations, products, or injuries that occur on the company’s premises.
Commercial liability insurance is considered comprehensive business insurance, but it does not cover all risks that a business may face.
General Liability Insurance For Contractors
Commercial liability insurance policies have different levels of coverage. The policy may include premises insurance that protects the business against claims that arise at the physical location of the business during regular business operations.
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It may also include coverage for bodily injury and property damage that results from a finished product or service performed elsewhere.
Commercial insurance companies also sell excess liability insurance that can be purchased to cover claims that exceed the CGL policy limit. Some commercial liability insurance policies may contain exclusions that limit covered actions. For example, the policy may not cover the costs associated with a product recall.
When purchasing commercial liability insurance, it is important for businesses to distinguish between property damage insurance and non-casualty insurance.
A claims policy provides coverage when a claim is made, regardless of when the loss occurred. Claims policies cover claims where a damaging event has occurred during the policy term, even if the policy has expired.
What Types Of Insurance Should A Contractor Have?
In addition to commercial liability policies, companies can also purchase policies that cover other business risks.
For example, a company may purchase employment practices liability insurance to protect against claims related to sexual harassment, wrongful termination, and discrimination. It may also purchase insurance to cover errors and omissions in its financial statements, as well as insurance to cover damages caused by the actions of its directors and officers.
A typical commercial liability insurance policy covers accidental damage or injury, but does not cover intentional or foreseeable damage.
Depending on the needs of the business, the company may need to name other companies or individuals as “additional insureds” under the business liability insurance policy. This often happens when companies sign a contract with another company.
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For example, if an auto repair shop contracts with ABC Co. to provide its cleaning services, ABC Co. may require the owners of the repair shop to add ABC Co. as an “additional insured” in their commercial liability general liability insurance policy.
In any of these cases, business liability insurance can cover the costs of hiring lawyers to defend the business or the costs of settling claims. If a company has frequent claims against its CGL insurance, the insurer can increase the cost of the policy premium.
Commercial liability insurance covers bodily injury and property damage that occurs on company premises. This type of policy can also protect businesses against defamation, defamation or damage to publicity.
Of course, the cost of commercial liability insurance depends on the size of the insured company, the risk of its operations, and the amount of coverage required. Some insurers say their customers pay $300 to $600 for $1 million in coverage. Others say their customers can pay up to $1,000.
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Most CGL policies do not cover intentional or foreseeable damage by the insured. They also do not cover losses due to intoxication (in alcohol-related establishments), pollution, damage to cars or other vehicles, business operations or additional liability that the insured may incur. A company exposed to such risks must purchase additional insurance to fully cover itself.
Purchasing commercial liability insurance can help protect your business from a variety of risks, including the risk of litigation arising from day-to-day business operations.
CGL policies cover claims for property damage, personal injury (eg libel or defamation), bodily injury and advertising damage. This insurance coverage can help you pay legal fees or settlement costs in the event of a lawsuit. And you can expand your coverage with extensions that include errors and omissions, deductibles or employment practices liability.
You can’t predict what will happen in the future, but you can protect your business and reduce risk with a CGL policy.
A Quick Guide To Contractor Insurance And General Liability Insurance
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Our figures are based on the average cost of policies purchased by customers. The median provides a better estimate of your company’s expected payouts because it excludes high and low premium outliers.
Commercial General Liability
You know you need insurance for your small business, but where do you start? And how can costs be reduced?
Most small businesses start with general liability insurance. You can bundle property insurance with your liability insurance for a discount of $57 per month.
Builders and contractors pay an average of $80 per month or $960 per year for general liability insurance.
General liability insurance provides financial protection for consumers against frequent lawsuits. It can cover costs if someone sues your company for personal injury, property damage, or copyright infringement.
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Small businesses can often save money by combining general liability insurance with commercial property insurance in a business owner’s policy (BOP).
The cost of general liability insurance depends on factors such as the coverage limits you choose, the size of your business, the amount of foot traffic and any subcontractors or additional insurance endorsements.
The cost of general liability insurance depends on your risk in consumer litigation. Of builders and contractors who purchase general liability insurance, 20% pay less than $50 per month and 61% pay less than $100 per month.
Businesses that interact with many customers and are at higher risk of accidents usually pay more for general liability insurance.
General Liability Insurance For Small Business
For example, roofers can pay more for liability insurance than locksmiths and other low-risk professionals. The average monthly cost of a roofer is $267, and the average monthly cost of a locksmith is $42.
Other factors that affect your premium include business turnover, building maintenance, years of operation and location. As you can see, costs vary greatly depending on the profession.
Coverage limits are the maximum amount your insurance company will pay for covered losses. The per-claim limit is the maximum amount your insurer will pay per incident, while the aggregate limit is the maximum amount your insurer will pay for all losses during your policy period, usually one year. Higher limits are more expensive – and offer better protection.
Most contractors and construction companies (97%) choose general liability insurance with a limit of $1 million per claim and an aggregate limit of $2 million. As your small business grows, you may need to expand your coverage limits.
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Learn how to save money on your policy, what coverage limits to choose, and more on our Liability Insurance Cost Analysis page.
Builders and contractors pay an average of $98 per month for a business owner’s policy, or $1,173 per year. Most choose the BOP, which has a limit of $1 million per occurrence and an aggregate limit of $2 million.
BOP combines general liability insurance with commercial property insurance at a discount. It provides financial protection against common consumer claims and also covers the value of stolen, damaged or destroyed business property.
The cost of a business owner’s policy depends on factors such as the limits you choose, the size of your business, the amount of foot traffic, and the value of your business property and equipment.
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Builders and contractors pay an average of $254 per month or $3,054 per year for workers’ compensation insurance.
Workers’ compensation is an important measure in the construction industry because workers are at high risk of injury. It helps cover medical expenses for work-related injuries that your private health insurance may not cover. It also partially covers lost wages during recovery
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