General Liability Insurance Coverage

Typically, it is challenging for businesses or general contractors to operate without general liability insurance. General liability insurance is designed to protect operators and owners of companies from claims arising from a wide range of sources. These exposures could encompass almost anything, including liability arising from the insured party’s operations, contractual liability, products manufactured by the insured party, and other similar risks.

Cost Factors and the Importance of Proper Coverage

The liability you select, whether it is one, two, or three million dollars, determines the cost of general liability insurance. Also factored into the rates are the kind of work undertaken, gross receipts and total payroll expenses. Similar to auto insurance, when it comes to general liability insurance, you will first have to make a down payment and then follow it up with installments. Before buying general liability insurance, it is best to compare the quotes available in the market.

Responsibility and Legal Exposure on the Job Site

It is the business owner’s or general contractor’s responsibility to ensure that an insurance policy covers the people working under them. If, for example, a person who is not a part of the project gets injured, the injured person’s lawyer can target just about anyone involved in the project. The more individuals who are involved, the greater the chances of a successful lawsuit.