Commercial General Liability (CGL) insurance is an essential coverage for today’s artisan contractors. As and insurance pro, I get asked all the time, “Why do I need general liability?” Let me tell you, as a construction pro, you are likely to come into contact with a variety of risks on a daily basis that you hadn’t even considered. The CGL policy provides the protection to shield you and your business from the financial burden that could occur resulting from a jobsite accidents, injuries, or damage to property caused by your business operations.
Construction pros like you need CGL insurance because of the nature of your work. While you take the normal precautions, construction sites can still be dangerous places, and it only takes one accident to result in a significant financial loss. For example, if a realtor wears sandals on the jobsite and gets a nail stuck in her foot, and you know it could happen, your business could be held liable for their medical expenses. CGL insurance can help cover these costs.
CGL insurance also provides protection for third-party property damage. If a piece of equipment damages a neighbor’s property, for example, CGL insurance can help cover the cost of repairs. Similarly, if a customer slips and falls on your property, CGL insurance can help cover the cost of any resulting medical expenses.
Another important aspect of CGL insurance is that it can also provide protection in the event of a lawsuit. If a third party sues your business for damages or injuries, CGL insurance can help cover the cost of legal fees and any settlements or judgments. The allegations alone could put you out of business and cause you to lose money from being away from. However, CGL policies can at least provide you a legal shield in case the lady steps on a nail.
When shopping for CGL insurance, it is important to work with an insurance agent who understands the unique risks faced by artisan construction contractors. They can help you identify the specific coverage you need, and tailor a policy to meet your business’s needs.
Perhaps one of the best reasons to get a CGL is that it gets you in the door to bid bigger and better projects. If you’re like most construction pros, you want the chance to increase your bottom line. By purchasing the right General Liability policy with the right extras, you set your business up to be financially protected and successful.