Contractor General Liability Insurance protects contractors from financial obligations arising from damages or medical payments resulting from bodily injury, property damage, or personal/advertising injury to third parties caused by or relating to the contractor’s work that occurs during the policy period. Contractors should maintain this coverage for their own protection and because they are frequently required to present confirmation of such coverage.

Customer injury, customer property damage, and other common business hazards are covered by general liability insurance. It helps you qualify for leases and contracts while also protecting your small business from the hefty expenses of lawsuits.

#General liability insurance covers a wide range of hazards.

Construction enterprises and contractors, from carpenters to general contractors, confront significant hazards. Insurance for third-party injuries and property damage is known as general liability insurance. General liability insurance can cover medical fees and repair costs if a visitor is harmed in your workplace or property damage occurs during a renovation, for example. This policy covers the following types of liabilities:

1. Customer injuries
2. Customer property damage
3. Libel and slander
4. Product liability

The cost of general liability insurance is influenced by a number of factors, including:

• The size of your company, with larger companies paying a higher rate for general liability insurance.
• The type of company you run. Contracting businesses are more sensitive to risk than other types of enterprises. Your general liability insurance coverage may be impacted by higher levels of risk.
• Depending on how long you’ve been in business, your general liability insurance quote may be affected.
• Your general liability insurance rate is influenced by the number of employees you have. Your contracting business will be greater if you have more personnel, which means there will be a greater risk.
• If your company is located in a region that is particularly vulnerable to risk, your insurance premiums may be affected.
• Limits and deductibles, with the amount of your policy’s deductible determining your rate.
• Claims history influences insurance prices, with clean claims histories resulting in reduced premiums. If your company has a history of filing claims, this could indicate that it is sensitive to risks and liabilities.

When a contractor applies for Contractor General Liability Insurance, they must complete the application accurately to the best of their knowledge, including providing estimated information for the next insurance term. The insurance company uses the information provided on the application, including forecasts for the next policy term, to accurately rate the policy based on risk exposure.

An insurance company’s exposure may increase or decrease over the course of a year as a contractor’s business changes. To account for these changes, the insurance company does a premium audit. The audit questions are similar to those on the application, and they may delve deeper into areas where the insurance company finds a contradiction between current operations and the initial application.

Insurance firms may undertake premium audits at any time during the policy term, beginning one week after the policy is bound and ending one year thereafter.

Clare Louise