Normally, it is difficult for businesses or general contractors to work without general liability insurance. General liability insurance is intended to guard operators and owners of companies against claims that may come from a broad spectrum of sources. These exposures could be just about anything, including liability caused by accidents from the operations of the insured party, contractual liability, products manufactured by the insured party, etc.
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 workers’ compensation most of the general liability policies can be audited by the insurance company. If your policy’s premium is estimated by payroll or sales, it is critical that you keep very good business accounting records and records on all of your subcontractors.
It is the business owner’s or general contractor’s job to make sure that the people working under him/her are covered by an insurance policy. 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 that are involved, the greater the chances of a successful lawsuit.
Independent Insurance Counselors offers complimentary quotes on General Liability Insurance from multiple insurance carriers so you can protect what matters most in life.