General Liability Insurance Coverage

General Liability Insurance Coverage covers certain lawsuits against the contractor alleging that the contractor´s negligence has resulted in “bodily injury”, “property damage” and “personal / advertising injury” to someone else. Such potentially covered lawsuits can arise out of injuries while the construction is ongoing or many years after the job is finished.

Common examples of potentially covered lawsuits are as follows:

  • Child wanders onto construction site and is injured while playing
  • Worker is digging a ditch and severs a utility line
  • Faulty plumbing results in water damage 1 year after completion
  • Faulty electrical wiring causes the house to burn down 5 years after completion
  • Your Subcontractor installs faulty gas lines that cause the house to burn down

You need to be aware that the Contractors Liability Insurance policy has many exclusions in the “fine print” which may result in no coverage for many types of lawsuits.

Contractors’ General Liability has been increasingly difficult to obtain in recent years due to the construction defect litigation crisis. The insurance industry has begun to restrict coverage by placing many exclusions on contractors policy forms including but not limited to EIFS, Mold, Lead, Products-Completed Operations, Prior Completed Work, Damage To Work Performed By Subcontractors On Your Behalf, Subsidence, Contractual Liability Limitation, Independent Contractor Exclusion, Roofing Operations Exclusions, etc.

You must understand the coverage implications of these exclusions if they are found on your general liability insurance policy.  You can learn more about how to save money on General Liability Insurance and how to be prepared for your audit by referencing our educational insurance articles.

Get your free general liability insurance quote here or call us at 1-800-622-7370 for help or more information.