You may not be legally required to carry general liability insurance, but it’s good business practice. General liability insurance protects you in the event a claim is filed against your business. As experienced Tampa construction lawyers, we highly-recommend it. Why not put measures into place to protect yourself from a potential lawsuit and financial woes that could easily lead to a bankruptcy? This article will conclude our two-part series. To read the beginning of the article, read part 1.
What’s Not Covered
Naturally mishaps will happen outside of the scope of what a general liability insurance policy will cover. Here are some of the incidents the policy will not cover.
- It will not cover damage to your own property. It only covers the damage you (or your employees) have caused to someone’s else’s property.
- It will not cover employees injured on your jobsite. This is where workers’ compensation comes into play.
- It will not cover employment-related claims stemming from harassment, discrimination, or termination.
- It will not cover company vehicle accidents.
- It will not cover various errors or omissions as they relate to your expertise. This includes professional mistakes such as faulty practices and other negligences.
Things to Think About
When you’re looking to obtain general liability insurance, not only do you need to understand what is and what isn’t covered, but you need to know the limits of what is covered. Coverage is not unlimited, so you need to know where it begins and ends. Your classification matters. An agent will determine your class code based on the services you provide and tailor your policy accordingly. Whenever your business changes, call your agent to ensure your policy still covers your needs. Lastly, general liability insurance is not a means to cover your financial obligations; bonds are more appropriate to cover those types of obligations.
Where to Get Coverage
Perform a Google search and you’ll find there are many reputable insurance companies in Florida that provide adequate coverage for construction businesses. Think about factors such as your risk exposure, where your business is located, the type of business you have, and the number of people you employ.
Insurance companies will also evaluate your risk by analyzing your claim history, the likelihood of claims for your type of company, state laws, how long you’ve been in business, and your financial stability. The higher the risk, the more coverage you need. Beyond GL, you can look into professional liability insurance, Business Owners Policy (BOP), and commercial auto insurance.
Disclaimer: The information contained in this article is for general educational information only. This information does not constitute legal advice, is not intended to constitute legal advice, nor should it be relied upon as legal advice for your specific factual pattern or situation.