Commercial General Liability Insurance provides protection against Bodily Injury and Property Damage claims for which a business operation is legally liable. Having Commercial General Liability Insurance is one of the most import things a Contractor can have, so it's best to take a closer look and understand its components.
Who Is Covered?
The "Named Insured" is the one who’s considered the policy holder. It's found on the "Declarations Page," which is the document by which the insurance company communicates the parties of the insurance contract. In cases where the Named Insured operates the business as an individual, he or she is covered as is their spouse, while acting on behalf of the business. If the Named Insured is a partnership or joint venture, coverage will extend to partners and members, along with their spouses while acting on behalf of the business. If the Named Insured operates a Limited Liability company, the company and its members and managers are covered while they are acting on behalf of the business. If the Named Insured operates as a corporation or association, the organization itself along with its executive officers and directors are covered by the policy.
General Liability insurance coverage will apply if a claim is filed due to an event where the insured becomes legally liable. It can't be stressed enough however, that coverage does not apply to all situations where the insured is legally liable for damages. Coverage will be however, limited to those obligations listed in the Insuring Agreement of the policy and not otherwise excluded from the policy.
Bodily Injury or Property Damage
Since construction sites are a rough place, accidents and injuries can happen no matter how careful you are. Often Contractors work in close proximity to pedestrian walkways. Construction material, tools, debris, all can be considered hazards to people nearby. Construction sites are an attractive nuisance to children, who may want to play in or around the area.
In the event an insured becomes legally liable for the “Bodily Injury” of another, including pain and suffering, sickness, disease or death, the Bodily Injury portion of the Commercial General Liability insurance policy offers protection.
This coverage applies when an insured damages tangible property and includes Loss of use coverage.
Products and Completed Operations
Covers liability arising out of the insured's products or business operations conducted away from the insured's premises, once those operations have been completed or abandoned.
Personal and Advertising Injury
Personal and advertising injury protects the “Named Insured” for injuries which he or she become legally liable. These include, but are not limited to, malicious prosecution, false arrest, detention or imprisonment, oral or written publication of material which libels or slanders a person or organization, or copyright infringement.
Damage to Premises Rented to You
This coverage protects the insured in the event of a claim, for damage resulting from causes other than fire, on a premise which they have rented.
Fire Legal Liability
This coverage offers protection when the “Named Insured” becomes liable for fire damage to a premise which he or she is renting or temporarily occupying with the owner’s consent.
The General Liability Insurance cost will vary due to the type of work you do, the coverage amount you’re seeking, your experience, prior losses and other factors. For example, Roofers’ General Liability Insurance cost is much higher than Drywall General Liability Insurance cost.
Ask your Broker about the details of your particular General Liability insurance policy. Remember, not all situations where the Named Insured becomes legally liable will be covered, so it’s important that you read your policy and ask your Broker to explain the coverages to you as well.