Whether you’re a one-man operation or have a fleet of vehicles and employees, if you’re in the contracting business, you need to have adequate liability insurance. General liability insurance is not required by law. But, many state agencies include general liability as a licensing requirement.
Minimum General Liability Insurance
When you’re shopping for general liability insurance as a contractor, there are certain minimum standards that your policy should meet. Here’s what you need to know in order to make sure you’re properly protected.
First, your policy should cover both personal and advertising injury liability. This will protect you in the event that someone is injured as a result of your business activities, or if your business is accused of false advertising.
Second, your policy should have a minimum limit of $1 million per occurrence. This will ensure that you’re covered in the event of a large claim or lawsuit.
Third, your policy should include medical payment coverage. This will help cover the medical expenses of anyone who is injured on your property.
Finally, make sure that your policy covers any additional exposures specific to your business. For example, if you work with hazardous materials, you’ll need to make sure that your policy includes coverage for that exposure.
By meeting these minimum standards, you can be sure that you’ll have the coverage you need in the event of a claim or lawsuit. Talk to your insurance agent to make sure that your policy meets all of these requirements.
Waiver Of Subrogation General Liability
when you or your client waive their right to make general liability claims then that is known as a waiver of subrogation. Contractors usually get a waiver of subrogation from subcontractors in order to not be held responsible for general liability claims.
Claims or Losses
If you’re a contractor, you’re probably well aware of the importance of having adequate insurance coverage. After all, accidents happen – sometimes even when you least expect it. That’s why it’s crucial to have the right insurance in place, so you can protect yourself (and your business) in the event of a claim or loss.
Also known as general liability insurance, this type of coverage protects contractors from financial losses arising from claims or damages that occur as a result of their work. This can include things like bodily injury, property damage, personal injury, and more.
The minimum requirements for a contractor’s liability insurance will vary depending on the state in which you work. However, most states require a minimum limit of $500,000 per occurrence. That said, it’s always best to err on the side of caution and purchase a policy with higher limits if possible.
Unusual or Exceptional Risk, Additional Insurance
When it comes to contracting, there is no one-size-fits-all insurance solution. The specific insurance needs of a contractor will vary depending on the type and scope of work being performed, as well as the size and financial stability of the company. However, most contractors will be required to carry some form of general liability insurance in order to protect themselves from third-party claims arising from their work.
There are a few different types of risks that may be excluded from a standard general liability policy, so it’s important to be aware of these before selecting a policy. One type of risk that is often excluded is known as an “unusual or exceptional risk.” This can include things like working with dangerous materials or performing work at heights. If your work presents any unusual or exceptional risks, you will likely need to purchase additional insurance coverage to protect yourself.
Another type of risk that may require additional insurance is known as an “additional insured.” This designation is typically given to people or organizations that are not directly involved in the work being performed, but could still be held liable if something goes wrong. For example, if you are working on a construction project for a client, they may require that you add them as an additional
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Other Insurance Coverage That May Be Required:
In addition to general liability insurance, contractors may also be required to carry other types of insurance, depending on the type of work they do and the contracts they have in place. For example, many construction contracts will require that contractors carry workers’ compensation insurance, which covers injuries that occur on the job. And if a contractor is driving their own vehicle or using equipment that is not owned by the company, they may need to carry commercial auto insurance.