Contractors and general liability insurance: five questions you should ask

Five questions you should ask about general liability insuranceContract work of any variety often is dangerous. People are hurt on the job. Damages occur to a property during a project. If you don’t have general liability insurance, your dangerous work also can become very expensive work.

General liability insurance provides a variety of coverages, including property damage and injuries. Without that insurance, you face having to pay for those damages or injuries yourself. You also face the possibility of lawsuits. If you’re thinking about purchasing liability insurance, you should ask the following questions:

  1. What harm could your product or service cause? People file suits about ridiculous things, as any courtroom reality television show proves. Would you be able to claim due diligence when facing that judge if your product or service harmed someone or something?
  2. What other risks does your business have? Are you concerned about sexual harassment claims? Do you worry about people slipping or falling? You may need additional coverages besides general liability.
  3. What type of coverage is applicable to you and your situation? This question relates closely to the second one. Once you have determined your risks, you need need to identify the coverages you need. An associate at Flor & Associates Insurance Agency can help you to make those decisions.
  4. Do your contracts require liability insurance? Many military contracts require you to have general liability insurance. Other entities and even events also demand it.
  5. How big is your business? If you are a small business, an additional policy may not be feasible, or it could be extraneous to your needs. You may be able to add an additional coverage to an existing policy; however, you should visit with an insurance agent prior to making any decisions about changing an existing policy or adding a new one.

Do you have general liability insurance? Why or why not?

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