What Risks Does Contractors Insurance Cover?

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Contractors insurance protects contractors against liability claims for bodily injuries and property damage a third party may suffer because of the contractor’s work.

As a contractor, you may be sued for an accident at your job site that causes property damage and/or bodily injuries. Instead of meeting the costs yourself, your contractors insurance policy will meet your legal fees, medical bills, and compensation the court may grant the complainant.

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Common Coverages On Contractors General Liability Insurance Policies

As it involves use of heavy equipment and such physically demanding work, accidents are quite common in the construction industry. These accidents can cause both serious injuries and major property damage. Without insurance, you could easily find yourself facing a huge liability claim in the event of an accident on one of your job sites.

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Here are the coverages you can expect on your contractors general liability insurance policy:

  • Damage claims for bodily injuries as well as sickness and death of a person on a contract you are working on,
  • Physical damage to and loss of use of someone’s property as a direct result of an accident your crew is responsible for,
  • Injuries and property damage that happens after you have delivered a completed project, but only if work was completed during a policy’s term,
  • Medical costs for bodily injuries a person suffers as a result of an accident on your job site
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What Contractors General Liability Doesn’t Cover

It is important to know as you shop for contractors insurance cover that there are some risks you would assume the policy would cover that it won’t. To start with, these policies will not cover claims against the quality of your work on a delivered project.

Lawsuits resulting from disputes where a client feels the work you performed on their project falls short of their expectations is the domain of professional liability, aka errors and ommissions insurance.

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Some Clients May Demand Proof of Contractors Insurance

Noting how a liability claim can stall a project, throwing their own plans, many developers and renovators now demand proof that a contractor carries general liability insurance with adequate coverage.

Some clients will go a step further and request that you add them as an additional insured on the policy. They are wary of any third party liability claims that may target them directly over some damage or injury happening as a result of the contractor’s work.

So, besides guaranteeing your own financial protection from third party liability claims, carrying insurance may be necessary for finding work. Either way, purchasing insurance is good for you.

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We are a leading insurance brokerage in Mississauga, with certified and highly experienced brokers on our team.

Should you need more guidance on choosing the right contractor’s insurance plan for your business, the insurance experts at the Able Elite Team are always glad to help.

Contact the Able Elite Team for the best contractors’ liability insurance quotes in Mississauga.

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