What is General Liability Insurance in Construction Industry?

General liability insurance is a type of construction insurance for construction business to insure any bodily harm or damage to property during the course of the project. This insurance is also termed as commercial and contractor general liability insurance (CGL). This insurance is provided to various professionals in the construction business and project in different versions.

Read on :What is Construction Insurance? Who Needs Construction Insurance?

The insurance providers or the insurance agency are ready and available to protect the policyholders from unnecessary risks. If you are a property owner, a contractor, or a construction company, it is your responsibility to take this initiative for the welfare and safety of your employees.

What all are Covered in General Liability Insurance in Construction?

General Liability insurance covers the following situations:

1. Property damage, bodily injuries and marketing or advertising damages.
2. Insure an issues related to completed services or product. For example, after completion of a staircase, it breaks one day and the occupant is injured, this will have a case against the constructor. These can be insured by availing for general liability insurance.
3. Cover medical and legal cost and any nasty cases like slander, stolen, libel or infringement.
4. Covers faulty workmanship or improper actions of employees and subcontractors who are liable to anything that goes wrong during a project.

General Liability Insurance for Property Damage in Construction

Any property damaged during the course of the project can be repaired or replaced using this policy insured. If the client decides to take the issue to court, then the cost of lawsuit is also taken by the general liability insurance for this case.

General Liability Insurance for Customer Injuries in Construction

General Liability Insurance for customer injuries covers medical bills, attorney fees, court-ordered judgements, medical bills, funeral expense in case of fatal incidents and any settlements.

General Liability Insurance for Product or Service Completed in Construction

For example, after completion of a staircase, it breaks one day and the occupant is injured, this will have a case against the constructor. These can be insured by availing for general liability insurance

General Liability Insurance for Libel and Slander in Construction

Using a slogan or mimic for your company or projects which is already owned by someone else will invite copyright issues. These accidental advertising injuries can be covered by general liability insurance which takes defamation and copyright infringement.

Who can Take General Liability Insurance in Construction?

The various businesses in construction who can avail for general liability insurance are:

1. Residential general contractors (RGC)
2. Developers
3. Remodelers
4. Light commercial general contractors
5. Trade/specialty contractors (HVAC, electrical, plumbing, etc)

Benefits of  General Liability Insurance in Construction

1. It protects owners, employees, and subcontractors from liabilities related to property.
2. It helps employees to keep trust and develop quality work in return for taking insurance for them.
3. More clients will approach you for new projects.
4. Clients trust an insured construction project as there are no worries regarding financial loss

Also Read: 

What is Construction Professional Liability Insurance (CPL)?

What is Pre-construction? Pre Construction Services and Features