As a general contractor, you’re aware of the risks that come with the occupation. No matter how much precaution is taken, construction sites are not safe. And if a client visits the premises, there is always a danger.
Therefore, it’s crucial to minimise the risks to your brand’s image because risky situations are inevitable.
This is where general liability insurance comes in. In case you land yourself in legal trouble because of something that one of your employees does, you don’t have to worry about legal expenses.
What Does General Liability Insurance Cover?
Imagine you’re working on a project involving repairing the roof of your client’s house.
One of your employees makes a mistake that causes the roof to collapse, inflicting damage to the client’s home.
Your client expects you to pay for the damages. Your initial reaction will be to repair the roof and move on.
In reality, it affects your brand’s image negatively. Your client will form a negative image of you in their mind and in this way, will no longer want to employ your services. That is why, it’s essential that you get insured. General liability insurance covers the following:
- Advertising Lawsuits: Even if the injury isn’t physical, it’s still an injury. If you employ marketing services and it somehow portrays the client’s business negatively, they can sue you.
- Bodily Harm: This one is important for your business because of the risks associated with it. While general liability insurance will not cover injury to your employees, it will cover injuries caused to a client through your business. If a client hurts themselves when they step on tiny shards of glass at your premises, you will be held responsible if there is no caution sign.
- Libel and Slander: If one of your employees badmouths a client via email and accidentally sends it to the client, you could land in hot water. This also works for verbal defamation. If one of your clients hears about your employees trash talking about them, they can take you to court! General liability insurance helps pay the expenses to the injured party. The bonus side? It also covers the legal fee on your behalf!
- Medical Expenses: Client injures themselves on your property which results in them becoming hospitalised; it can be difficult to cover their medical expenses and carry out daily operations smoothly. General liability insurance ensures that you don’t have to deal with such taxing situations.