Insurance coverage is an element that no industry can afford to be without. No longer is it a luxury that only large enterprises and well-known companies can afford. For contractors, it’s an edge that provides a measure of financial safety and security, as well as the peace of mind to focus on the business without having to worry about premiums with all the flexible plans available. There are still a few things that every contractor must know regarding policies and coverage to get the most out of being insured.
The basics of general liability
As far as insurance policies go, general liability is the most common. As its name suggests, it tends to cover the majority of general issues that may be encountered. From claims of injury to property damage, the contractors liability insurance at next-insurance.com, for example, is an invaluable asset for cases and disputes that could potentially be catastrophic for small businesses and end careers. It can be particularly beneficial since it usually entails covering expenses related to lawsuits, ranging from legal fees to any damages that may be owed to the opposing party.
One thing to take note of is while general liability insurance isn’t necessarily always required by law, it’s always good common practice to have it. It serves as a safety net to protect your financial security and certain agencies can also tailor this policy to include other coverage that may be needed such as property insurance.
Types of general liability insurance
There are three common types of general liability, which are professional, product and commercial. In the event where injury is sustained and claims of negligence are brought against your business, commercial liability covers it. On the other hand, product liability, as its name suggests, usually covers the legal fees that may be associated with any products delivered by the business that cause harm. Last but not least is professional liability insurance which serves to protect you from claims of damage and harm directly caused by services rendered.
Acquiring the proper insurance coverage that is needed as a contractor isn’t a particularly difficult task to achieve. However, there is still a rule of thumb that must be followed in order to mitigate the risks of oversight and mistakes. This is to never leave any stone unturned and be thorough when discussing your options with the insurance company or agent. Sign documentation only when you’ve exhausted all questions and considerations on the matter, as this will prevent any unnecessary expenditure relating to the addition or modification of certain policies. More importantly, you’ll have comfort in the thought that your business and career will be fully covered for whatever may come.