Whether you decide to launch your own business and do work for clients or you own a business that employs contractors, you need liability insurance. This is a type of insurance that many states require business owners carry. If an accident occurs on the job, the state can fine you thousands of dollars or more for not having coverage. You’ll also find that you or your business is responsible for the medical bills or other bills that may occur because of that accident. Liability insurance for contractors generally covers three different things.
These policies are so important because one will cover all the employees working for you on the job as well as yourself. Contractors often work on construction sites and can work with heavy equipment and in potentially dangerous situations. All it takes is someone to back up a bulldozer without looking for an employee to suffer an injury on the job. Your policy will kick in and cover any employee injured on the job site. When looking for contractors general liability insurance California business owners often look at full coverage options too. Full coverage will pay out for all the medical bills and other costs associated with an accident on the job.
A good liability insurance policy covers your clients too. This is especially important because you cannot control everything that happens on a job site. When an employee loses his or her balance, the worker may fall down and drop construction materials all across the floor. If those materials break, you can use your policy to seek compensation and get cash that you can use to get new materials. Your policy will also cover any damage done to a client’s home or property, but it will not cover damage done by negligent acts.
No matter where the job takes place, you will find yourself in direct contact with the general public. When you pick the right liability insurance, the policy will cover any damage or accidents that affects one or more people who have no connection to the job at hand. This can include those walking by a construction site, neighbors who live near the site and visitors of your clients. Liability insurance for contractors covers expenses relating to your clients, yourself, your workers and anyone who might visit one of your job sites in the future.