No matter how much care you take to keep job sites safe and finish projects according to specifications, accidents happen. Sometimes all it takes is one mistake for your world to come crashing down (check out this suit involving Eddie Van Halen). In many cases, construction liability insurance could be the key to holding it all together. Consider these scenarios:
- an improperly installed kitchen cabinet shelf in a home you built collapses, injuring the owner
- one of your employees posts a blog accusing a competitor of shoddy workmanship
- a visitor to your worksite trips over an air hose, falls, and fractures her leg
To protect your business against the financial threat of costly litigation from such all-too-common mishaps, you need construction liability insurance.
This coverage will pay costs and legal expenses (up to the amount of the policy) for something your business did — or failed to do — that damages a third party, related to
1) your products or services (products and completed operations)
2) allegations of slander (personal and advertising injury) OR
3) injury on your premises or job site (medical expenses)
As a common business practice, both residential and commercial clients will require you, and your subcontractors, to show evidence of construction liability insurance before starting a job.
In general, residential contractors should buy coverage two to three times the amount of the construction budget. Commercial contractors usually carry policies in the multi-million dollar range. Firms that face higher risk of damages (for example, roofing contractors or those in specialized trades) tend to have more coverage. Some contractors prefer to pay their premiums up front, while others make a down payment and finance the premium over the policy period (six months to a year).
No matter how large or small your business, having comprehensive construction liability insurance is always the best policy.
We’d be happy to review your situation and recommend the coverage that’s best suited for you.