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Construction Insurance Bulletin

What is General Contractors Professional Liability?

By June 14, 2017No Comments

When you work as a general contractor, you may build homes from the ground up, perform repairs on a variety of buildings or renovate homes, buildings or offices. Your job fulfills you and improves the lives of others, but you do face risks. Protect your livelihood and assets with general contractors professional liability.

What Risks do General Contractors Face?

General contractors normally perform the building aspects of a project. Because you’re responsible for construction, any structural failure could become your responsibility. You could potentially be liable for injuries and illnesses that result because of a mistake you or one of your sub-contractors commit.

However, keep in mind that your duties as a general contractor may extend beyond basic building. You may be responsible for:

  • Designing a project
  • Estimating project cost
  • Hiring sub-contractors
  • Supervising an entire build site

While rewarding, these additional responsibilities increase your risks and liability. An error in design, underestimated cost or mistake by one of your sub-contractors that causes bodily injury or property damage could result in a lawsuit that exceeds a million dollars. As the general contractor in charge, you would be liable for these costs.

General contractors professional liability protects your livelihood and assets if you are sued. Instead of losing your business, home and financial accounts, your liability insurance policy covers any damages. It allows you to pay for losses and stay in business.

What Does General Contractors Professional Liability Cover?

Purchase general contractors professional liability and receive coverage for several important circumstances.

  • Design errors
  • Bodily injury
  • Property damage
  • Negligent acts
  • Contractual liability
  • Faulty workmanship

Additionally, your may purchase a general contractor professional liability policy with pollution and indemnity coverage. These important products protect you if pollution claims arise on the job site or if an engineer or architect is legally liable for problems with the project.

How Much General Contractors Professional Liability do you Need?

The right professional liability policy provides the protection you need, but you may not know how much coverage to buy for your business or a specific job. Talk to your insurance agent about your job responsibilities, potential risks and assets. These factors help your agent create a customized policy with adequate coverage limits.

You should also discuss the difference between a general contractor professional liability policy and an umbrella policy that’s added to a regular liability policy. In most cases, the professional liability policy provides greater coverage and covers all your bases.

General contractors professional liability protects your livelihood and assets. It’s important coverage, so make an appointment today to talk to your insurance agent, protect your business and gain peace of mind.