Getting insurance shouldn’t be a chore nowadays since looking for an insurance policy and making comparisons can be conveniently done online. It is possible to get contractor general liability insurance online after doing some research. There’s no excuse for businesses not to have insurance. Construction businesses, in particular, can benefit from contractor general liability insurance as they need protection in case something untoward happens. They need insurance to deal with damages or other problems that may disrupt business operations.
Avoiding Unnecessary Expenses
Encountering accidents that result in injuries to persons or damage to property can be a serious problem for any business. A customer at a mall your company is renovating, for example, slips and falls upon stepping on the floor where water from the renovated area seeped into. This is an accident your construction company is responsible for so your company will be held liable for the medical expenses and other damages that can be attributed to the accident. If you have general liability insurance, all of these expenses will be paid for by the insurer so your company wouldn’t have to unnecessarily incur expenses.
Addressing (Rented) Property Damages
Yours is a construction company so the perception is that you wouldn’t be worried about having to repair, renovate, or reconstruct your buildings or other structures in case they are damaged. However, renovations and reconstruction are expensive so it’s always good to have an insurance policy that covers damages caused by fire, flood, earthquakes, and other disasters to your company’s rented property.
To emphasize, this is different from commercial property insurance because this is about liability insurance. This is not about the properties owned by a company. Also, this is different from force majeure insurance, as this is about insurance for the damage to properties of your construction company, not insurance to address your company’s delay or inability to complete a construction project due to forces of nature.
Dealing with Copyright Infringement and Reputation Damage
It’s also worth noting that general liability insurance is advantageous in addressing copyright infringement or intellectual property violation claims. Construction companies, especially the small ones, hardly have the know-how and means to properly deal with copyright or intellectual property issues. It would be great to have general liability insurance to conveniently address this.
Additionally, your company may get involved in issues that lead to reputation damage claims by certain parties. For example, one of your overeager marketing staff may have engaged in a bitter social media squabble with the social media team of a competing company. This may have resulted in the posting of libelous statements online, for which your competitors may want to charge your company with reputation damage. Your startup construction company likely does not have the extra funds to deal with this kind of problem so it’s good having general liability insurance providing the coverage.
Summing it all up, there are many benefits of getting a general liability insurance policy for a construction business. The coverage is not limited to injuries and property damages. There are other benefits many construction business owners may not be aware of.