In everyday operations, a business has to deal with employees, clients, vendors, contractors, among other parties. If you’re in a contract with someone and damage their premises, you’re liable for the damages. Therefore, one must get proper insurance coverage to deal with those scenarios. Those types of insurance are called general liability insurance policies. If you’re wondering about the coverage, then here they are.
If your negligence as an independent contractor results in bodily damage or one or multiple people, you’re liable for the damages. If you’re found at fault by the court, then you’ll be asked to pay for the cost associated with the damage. General Liability Insurance for Contractors covers such costs, and the insurer will pay on your behalf. This is perhaps the most common coverage type in liability insurance policies.
You can also be held liable if your negligence results in damage to someone else’s property. You’ll be asked to pay for the injuries sustained. The property can be a house, vehicle, furniture, or just about any other item the owner might possess. In the case of vehicle damage, car insurance policies typically cover those types of costs. As a contractor, you need to opt for a property damage liability coverage policy to secure your business against such litigation.
Personal and Advertising Damages
In the case of litigation arising out of stolen ideas or invasion of privacy, you can protect your business with advertising injury coverage. Copyright infringement is more common than you think. The cost associated with such infringement, whether intentional or unintentional, can run upwards of $250,000 in the U.S. If the court rules against your favor, you’ll be ordered to pay the amount to the copyright owner. Patent litigations are even more severe and complicated. You can protect your business against such high costs with an Advertising Injury Coverage policy.
Specific personal injury insurance packages might also cover these since advertising injury damages fall under personal injury insurance and not physical injury insurance.
Medical Payment Coverage
If people sustain injuries due to your negligence or action and incur medical bills, the court may order you to pay those bills. In some states, these costs are called medical expenses or med pay. The costs can include health insurance deductibles, hospital and doctor visits, surgeries, clinical tests, ambulance service fees, and nursing fees. In case of death, you might also be asked to cover that person’s funeral expenses.
These fees are covered in general liability insurance for contractors’ policy. There is no defense liability coverage in the cases involving medical fees because coverage for such expenses is offered on a no-fault basis.
Directors and Officers Protection Coverage
Anyone can sue the directors and individual officers of a business for negligence caused by them or one of their employees. This can be detrimental for that business since they will have no higher management to run the company. To defend the directors against such litigation, defense costs can run high.
Directors and Officers Liability Insurance can provide personal coverage to the directors and nominated officers of a company. This covers legal fees, damages, and other costs the company might incur.
Liquor Liability Damage Coverage
Companies associated with alcohol-related businesses are more at risk from litigation than other businesses. This is because the Dram Shop Law states that if a person procures liquor from a store and then his/her actions cause bodily and property damage to any other person, the liquor shop can be held accountable for the damage. These are typically not included in general liability insurance. Only a liquor liability insurance policy provides coverage for such litigation.
When assessing general liability insurance for contractors, you should check for the coverage that your business might need. Discuss your needs with an insurance agency to get the best packages.