Whether your company builds homes and commercial buildings or is a plumbing company, it is imperative to carry adequate Commercial General Liability or CGL insurance.
Considering all the things that can go wrong during a project, the work of a contractor can be a risky business.
Contractor’s business CGL insurance is there to protect your business specifically, your clients, and everyone involved in your company’s many services.
Many contractors only carry Workers Comp insurance to cover injury to their worker, where a commercial general liability policy drafted with the help of an experienced CGL insurance agency is an essential expense to help your business succeed by mitigating those risks.
What Does Commercial General Liability Insurance Cover?
CGL or Commercial General Liability insurance provides essential liability insurance for contracting businesses that protects them against accidents and other unexpected occurrences.
It provides financial coverage for injuries occurring at your jobsite to non-employees, property damage due to accidents and mishaps, liabilities arising from and around previously completed jobs, and much more.
The coverage of a well-written, individualized business CGL insurance policy offers the best means of protecting the investment and investors alike in important ways.
What Risks Do You Face If A Contractor Doesn't carry CGL Insurance?
When a contractor does not purchase CGL insurance from a CGL insurance agency functions, that contractor passes along to you the risks associated with his or her line of work.
A CGL insurance policy covers things that take place while the contractor is working on a customer's property including injury to a bystander, damage to someone else's property, and advertising claims relating to libel, slander, copyright infringement, and related issues.
Whether it is a homeowner hiring an individual subcontractor or a general contractor hiring subcontractors to perform certain duties, a CGL policy relieves the homeowner or general contractor from having to pay for these types of claims caused by the work of someone else.
Are There Risks Not Covered By CGL Insurance?
No insurance policy covers every risk and that includes business CGL insurance policies.
When purchasing one from a CGL insurance agency, it is important to identify which risks are not covered by the policy, then discuss how to most appropriately protect your business against them.
Commercial general liability insurance typically does not cover liability that is afforded under another policy such as a business auto policy, workers compensation insurance, and other applicable policies.
If there are specific risks that do not fall under any of these policies, you can purchase individual riders to get total protection against all pertinent liability risks.
All Contractors Need This Critical Insurance Coverage
As the cost of materials rise, supply chain problems become more prominent, and liability claims more possible, having CGL insurance has never been more important for today’s contractors and their many clients.
Without adequate business CGL insurance coverage, a single claim could put any contractor out of business in a snap.
Avoid that possibility and all the other risks that your contracting business regularly deals with by discussing it with an experienced CGL insurance agency that can help you craft the right policy for your business.
The right coverage will allow you to do business with the peace of mind that should something unexpected happen, you are covered!
