Being a contractor means having a lot on your plate. From securing amazing projects to protecting yourself in various situations. Among other things, you have to constantly keep in mind the fact that you may be held liable in case of certain accidents or legal claims, and those could definitely disrupt your work and put your financial stability in danger. Is there, however, a way for you to get properly protected against such claims?
There is, and it’s called liability insurance: https://en.wikipedia.org/wiki/Liability_insurance
Chances are that you, as a contractor in need of protecting his or her small business, have already heard about general liability insurance. And, you probably have a general idea as to how any why it is so useful. What you may not be sure about, though, is what it is that it precisely covers, and that is something you have to know before getting it. After all, you want to know what it is that you will be protected against when you get it.
So, what we are going to do right now is talk about that specific coverage. In other words, below I will tell you more about 5 important coverages that general liability insurance offers. This should give you a better idea about how safe you will be when you get it, as well as what it is precisely what you will be safe from. Without any more ado, thus, let me start listing the important coverages.
- Property Damage
As a contractor, you often have to work at other people’s properties. And, while you will do everything in your power to keep the property safe at all times, the truth is that unexpected things can happen, and you could wind up inadvertently causing some damage. Your employees and the equipment they are using could accidentally damage someone’s home, office, or any of their possessions. The thing is, the client will hold you responsible for this, and you will have to cover the damages.
Well, this is where general liability insurance plays a huge role, as it offers coverage for property damage. Meaning, thus, that you will get the financial help you need to pay for the replacements or the repairs. This is extremely important as it helps you avoid paying for it out-of-pocket, and thus hurting your business. Furthermore, it reduces the risk of lawsuits that could arise after property damage. Click this to get an even better idea about this type of insurance.
- Bodily Injury
Apart from accidents happening and damaging the property of your clients, they could also result in some injuries. Your workers or any other third party could get injured on the site, which can result in high medical expenses, as well as legal fees if the person winds up suing you. Not to mention that lost wages also have to be compensated for.
Well, once again, a great liability insurance policy will protect you in this case as well, helping you cover those expenses, such as medical bills, the lost wages, and the legal fees if it comes to that. So, you will be financially protected once again. But, the injured party will also be adequately compensated, which will reduce the likelihood of getting into prolonged disputes. All of this will show that you are capable of taking accountability, and assuming responsibility, which will have a positive impact on your overall business reputation.
- Product Liability Coverage
In case you run a manufacturing business, or you sell products, you should always be aware of the fact that certain defects in those products could also be a cause for concern. In short, they could lead to customer injury or some kind of damage. And, those customers are likely to file claims related to unsafe and faulty products. Once more, this is where general liability insurance comes into play to protect you, offering product liability coverage.
Manufacturers, retailers, and wholesalers alike can benefit extremely from this type of coverage, so it is basically essential for them. It protects them against financial losses that could arise due to defective products. And, once again, it helps maintain good customer relationships, and build a great business reputation, which is definitely essential today, if you want to survive on the competitive market.
- Personal and Advertising Injury
Now, here is something you may not have thought about, but it is definitely extremely important. To cut right to the chase, great general liability insurance can also cover all the claims related to personal and advertising injury. Those can include, among other things, liability, slander, false advertising, as well as copyright infringement. In the event that your business is accused of any of those things, your policy will help you cover the associated expenses.
So, this is important because it protects you against defamation lawsuits, among other things. Therefore, it is basically essential for businesses that engage in marketing and advertising, and I’m sure you understand that most businesses do this nowadays, if not all, because surviving in a competitive environment is often impossible without the right marketing strategies. And, in addition to this, the insurance will help you mitigate those risks associated with any kinds of promotional activities.
- Legal Defense and Settlement Costs
Last, but not least, we have to talk about legal defense, and the costs of settlement. Sure, you would much rather avoid such situations, but the truth is that lawsuits can happen. And, even if you are not at fault, they can be quite financially devastating, draining your business, and making it difficult for you to continue operating.
Well, general liability insurance also covers those legal defense costs, such as settlements, attorney expenses, as well as court expenses. This means that you’ll be able to afford competent legal representation to defend yourself, and not cause a huge dent in your business’s budget. A dent that could otherwise lead to bankruptcy. So, in short, instead of diverting all of your resources towards legal battles, you will get to continue focusing on your core operations, while the legal fees are covered through your general liability insurance.
