As a contractor, you’re liable for far more than just the quality of the structures your workforce produces. Contractors are responsible for building to code, ensuring the health and safety of their workers, and following the complex, constantly changing rules governing construction in the United States. It can be a lot to swallow for the inexperienced contractor, but it’s essential that someone is held responsible to ensure that this inherently hazardous industry is operating according to the proper guidelines. After all, what would our country be without a strong construction industry updating our infrastructure, giving us places to live and work, and providing our nation with solutions to the most pressing issues of today?
In this two-part series, the Fort Lauderdale construction lawyers at Cotney Construction Law will discuss contractor liability and the lesser-known liability risks that often catch contractors by surprise. If an employee has been injured on your project site or an owner claims that you have provided defective construction work, consult a Fort Lauderdale construction lawyer who is knowledgeable about the construction industry and contractor liability before you take premature actions that could obstruct your ability to work in the future.
Every Contractor Needs General Liability Insurance
It’s impossible to plan for the unexpected, and no amount of “doomsday prepping” can prevent a worker from spontaneously engaging in dangerous activities that puts their life at risk. However, you can protect yourself from an array of unforeseeable incidents by investing in general liability insurance. Due to the high-risk nature of construction work and the diverse applications in which it is utilized, it’s good to know that, for a nominal fee, general liability insurance can protect you from a broad range of mishaps and follies. Every contractor needs general liability insurance because every contractor is going to face an expensive setback at some point. Why pay out of pocket when an insurance provider will do the heavy lifting for you? Initially, you may feel as though you’re flushing money down the proverbial toilet as months pass without incident, but once a worker, client, or random passerby is injured on your project site, you’ll be glad that you’re not solely responsible for making financial reparations.
Three Reasons to Acquire General Liability Insurance
Typically, contractors acquire general liability insurance of their own volition, but many clients — especially big ticket private clients and all public contracts — will require some form of general liability insurance. For instance, in the State of Florida, general contractors must have minimum coverage of $300,000 for bodily injury and $50,000 for property damage. All other tiers of contractors require $100,000 for bodily injury and $25,000 for property damage. There are three main reasons why general liability insurance is essential for contractors. First and foremost, it’s an effective form of asset protection. Additionally, it’s crucial for business and employee protection. Finally, it’s the best contingency plan a contractor can have. Our Fort Lauderdale construction lawyers will discuss these reasons in greater detail in part two.
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.