General contractors are the unsung heroes of the construction industry. They wear many hats, managing a project’s plans, overseeing construction sites, and ensuring crews meet their deadlines. Because they assume responsibility for a wide range of activities, general contractors are liable for anything that goes wrong, from stolen tools to worker injuries. Contractors general liability insurance exists to mitigate the unique risks these clients face.
Overview of Contractors General Liability Insurance
As the construction business continues to find its feet after a decline, the demand for general contractors has risen substantially. In turn, insurance brokers can expect an increase in the demand for policies tailored to various roles in the construction industry.
Contractors general liability insurance is one example of profession-specific coverage that addresses the unique hazards individuals face as part of their jobs. Here are some examples of this type of policy’s coverage areas:
- Job site premises
- Third-party bodily injury
- Property damage
- Product and completed operations
By investing in this protection, your customers can insure themselves beyond the limitations of a more generic general liability policy.
Common Liability Exposures for General Contractors
Contractors know some of the risks they face but may overlook others. The following are a few categories of exposure to review with clients.
Job Site Premises Risks
Whether they are workers or members of the public, anyone who slips and falls at a construction site may sue the contractor. Likewise, contractors must also beware of people who damage property. Whether damage incidents are accidental or deliberate, the contractor is liable.
Falling Objects and Debris
Contractors general liability insurance covers liability for falling debris. Falling objects could include the following:
- Tools
- Scaffolds
- Ladders
- Ceilings
- Workers
Liability policies protect against the property damage these projectiles cause as well as personal injuries those standing below might sustain.
Liability Scenarios
Here are examples of construction-specific liabilities that contractors may face:
- Failure to meet specifications or building codes
- Use of substandard materials
- Incorrect installation, maintenance, or repair operations
- Faulty equipment
- Improper design
For example, if the owners of a new building receive a citation for safety violations, they may sue the general contractor for allowing an electrician to install outlets in the wrong places or use an incorrect type of wiring.
Commodore’s General Liability Insurance
The experts at Commodore Insurance understand that the construction industry’s rebound means more risk exposure for everyone involved. In our years of providing service to contractors, we have learned that tailoring policies to meet their needs is the best way to protect them.
Commodore also makes life easier for brokers. Collaborating with us allows you to better advise your general contractor clients on mitigating their risks and limiting financial losses in today’s business climate.
Importance of Contractors General Liability to the Construction Industry
Customized general liability insurance is an essential policy for anyone in the profession of construction general contracting. Without enough coverage, they are in danger of devastating financial losses due to injuries, damages, or a plethora of other misfortunes.
Commodore’s contractors general liability insurance is a solid investment for general contractors. By encouraging them to partner with Commodore Insurance Services, you can help these jacks-of-all-trades become the masters of their own businesses.
About Commodore Insurance Services
Commodore Insurance Services, Inc. (Commodore) is a California corporation that operates as a Managing General Agency and Program Manager. Since incorporating in 1990, Commodore has developed an expertise in the production and underwriting of insurance products for businesses across the West Coast. Our focus is on providing top-level insurance products to our clients while striving to make it easy to do business for our brokers. Try us and find out why we have continued to be successful for more than 27 years and are recognized as the trusted leader in small business insurance.
