While not just a good idea, some commercial clients may require you to carry some type of General Contractors liability insurance. A general liability insurance policy is designed to protect your business from 3rd-party property claims or bodily injury while in the course of construction. For example, if a person injures themselves on your worksite, you could be held liable for their injuries. Or if you’re doing renovations at your client’s office and accidentally damage their computers, your liability insurance can help pay to replace them. A general liability insurance policy is a good start, but there are other areas you may want to consider.
General Contractors should have a risk management strategy when employing subcontractors. As the General Contractor, you can be held liable for any injuries and damages caused by the subcontractor. As the General Contractor, it is your responsibility to ensure subcontractors have the proper insurance for instances of theft, vandalism, or even weather damage as part of a comprehensive risk management plan. This plan may also include subcontractor agreements, certificate management, risk transfer, and Builder’s Risk Insurance.
General Contractors also need to be up-to-date on cyber security issues. The best way to protect your business from a cyber incident is to implement an exhaustive cyber risk strategy. Identifying response teams, creating a strategy to combat a cyber attack, and Multi-Factor Authentication are just a few steps you can take. Our knowledgeable insurance experts recommend a cyber liability insurance policy to add another level of protection.
If you have employees, then you need workers’ comp insurance. Not only does it provide GCs with protections in case of workplace injuries, but most states also require it before you can even get your contractor license. Workers' Compensation is designed to help pay for lost wages and medical bills following a workplace accident. If you mainly work with subcontractors, they are not part of your workers’ compensation policy as they are not your employees. However, you need to make sure they have their own coverages.