WEDNESDAY, APRIL 15, 2020
General liability insurance is a policy that nearly every industry need, especially contractors. This insurance covers a wide range of accidents that may or may not be out of the business’ control. Get contractors General Liability. There are four main areas of general liability coverage:
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Bodily injury coverage steps in if a third party suffers bodily injury as a result of everyday work practices or non-professional negligence.
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Property damage coverage provides compensation if a third party’s property is damaged as a result of everyday work practices or non-professional negligence.
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Advertising and personal injury covers claims regarding libel, slander, use of advertising ideas, copyright infringement and more.
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Medical payments coverage compensates a victim that suffers bodily injury.
General liability is generally in place to help with lawsuits. It can help with legal fees, court fees and possible settlement costs if the contracting business is sued as a result of an accident or non-professional negligent act.
What is the Difference Between Normal Negligence and Professional Negligence?
These two issues are very different, and unfortunately, contractors face risks in both. General negligence comes as a result of a normal, everyday mistake that may result in bodily injury or property damage. For example, if a contractor runs a cord from outside and into the house and the client’s child trips and falls in the pool, this is an act of normal negligence.
On the other hand, professional negligence refers to mistakes made by a self-proclaimed professional or expert in which their acts or advice directly result in monetary loss of a client. This is most often seen in professions such as accounting and consulting. It is relevant to contractors too, however. If a mistake is made at any time during the architect or construction phase of a project, fixing or repairing the mistake can cost thousands or even millions.
Incidents such as these should be covered under a professional liability insurance policy. Professional liability insurance and general liability insurance are not the same, nor do they typically come together. While you may be able to add professional liability to your contractors insurance package, you may have to buy a separate policy.
You can also enhance both policies with umbrella liability insurance. Umbrella liability insurance steps in when your other liability coverages reach their limit. If your general liability policy covers $1 million and the company is sued for $1.6 million, this policy helps cover the remaining $600,000.
Posted 11:14 AM
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