It is a legal requirement for many businesses to carry general liability insurance. The main usefulness of this type of coverage lies in its ability to protect a business and its owner against liability resulting from bodily injury and property damage. General liability insurance is particularly useful to contractors, especially those in construction industry who are more exposed to this sort of risks.
The main reason you need general liability insurance is for it to safeguard your business against claims that may arise in connection with the manner in which you carry out your business. These risks could involve someone getting injured due to your work operation or damage to a client’s property. While general liability insurance is useful in protecting against these risks, you could still be left unguarded against some costly liability claims. So, there are still a number of other coverage options you may need to consider for your business, including the following:
1. Product Liability – Products could sometimes have defects, a fact which can be seized upon by some clients to file lawsuits against your business. For example, you could face costly legal action if your product causes injury to a client. General liability insurance may not be able to protect you against this sort of risk. A product liability policy can help protect you against costs associated to these lawsuits, which may prove too much for your business to contend with.
2. Workers Compensation – Ordinarily, general liability insurance may not cover injuries to workers of the insured. But, it is a fact that operations of some businesses, especially in construction, are fraught with risk of injuries to workers. It is therefore required to carry workers compensation insurance to protect against consequences of injuries to employees. You may be able to include this in your general contractors insurance policy.
3. Commercial Vehicles – Vehicles may also not readily be protected in a general liability insurance policy. You will need to ensure that vehicles used for your business are adequately covered against accidents and damage. The drivers of these vehicles should also be covered against injuries that can be sustained while driving.
General liability insurance no doubt can help safeguard your business. But, there are still a number of other coverage options that you may still have to consider in addition to it. It is advisable to speak further with an insurance professional to ensure you are adequately covered against risks.