It is crucial for contractors to understand what is covered by their insurance policies, so there are no surprises when an accident happens. Being in charge of completing work for other people is a major responsibility because so many things can go wrong. If you think something is covered by your insurance policy and it really isn’t, it could negatively affect your business. It will benefit you in the end if you are prepared and knowledgeable about what your insurance policy covers.

The two most important things contractors’ general liability insurance in California covers are bodily injuries and property damages for third parties. General liability only covers damages inflicted upon outsiders to your company. This means if you or your employees are injured or have property damage it will not be covered by this policy. Below is a more in-depth description of injury and property damage. 

Injury- Construction zones are not the safest place for non-construction workers because they are unaware of the dangers. Contractors’ general liability can protect you if a passerby or the client you are completing work for is injured due to negligence on your behalf. However, if you or your employees are injured on the job, this policy will not cover the injuries. You should have a workers’ compensation plan to cover any in-house accidents.  

Property Damage- Just like the injuries, this policy only covers property damage when it is someone else’s property. If an accident happens and your current client has damages, then you are covered. Your property such as supplies, tools, and vehicles are not covered by contractors’ general liability. 

At Budget Contractors Insurance, we want you to prepare properly for whatever life may throw in your direction. Don’t forget, general liability only covers injuries for third parties.  If you need more detailed information about contractors’ general liability coverage, we are here to help you understand our policy forwards and backwards. You are in excellent hands when it comes to selecting the right insurance for your construction business. Discover more about our other insurance plans and ask any questions you might have by contacting us today.