All business owners need basic insurance to protect their employees and themselves from financial loss associated with personal injury and property damage. However, those in construction also should consider the many other risks associated with this industry. Here is a description of construction liability insurance and why you need it.
Definition of Construction Liability Insurance
Construction liability insurance is a policy that protects from claims made against your business by the general public, rather than by employees. It covers medical costs of those injured at the construction site, as well as repair or replacement of damaged personal property. It also pays for court costs associated with defending yourself from some minor legal issues such as copyright infringement.
Examples of What Is Covered
Examples of situations that would require general liability insurance include the following:
- Another business sues you for copyright infringement.
- A customer sues you for inadvertently advertising something that you cannot deliver.
- A visitor to the construction site slips and falls.
Accusations of negligence or fraud require additional coverage, and are not covered by general liability.
Having construction liability insurance is considered a best practice by most professionals, and many clients will not hire your services without it. Talk to your insurance agent about customizing a liability policy that is right for you.