In part one of this two-part series, the Fort Lauderdale construction attorneys at Cotney Construction Law discussed why every contractor needs general liability insurance and briefly outlined three reasons why contractors should acquire it as soon as possible. Now, we will continue to expand on our reasoning from part one while simultaneously addressing the lesser-known liability risks that take contractors by surprise.
Remember, general liability insurance can give you peace of mind while you’re taking on even the most complex projects, but you should always consult a Fort Lauderdale construction attorney to ensure that your policy coverage is providing the level of coverage you need to keep your business running without disturbances all throughout the year.
Revisiting the Three Benefits of General Liability Insurance
Before we break down the lesser-known liability risks that can derail an otherwise smooth project, let’s break down the three major benefits of liability insurance in greater detail:
- Asset Protection: When a third party declares that they have been injured or their property has been damaged as a result of your project, general liability insurance will prevent you from paying out of pocket for these expenses.
- Business and Employee Protection: Construction projects contain countless moving parts, but you can proceed with nary a concern when general liability insurance is protecting you and your employees from any claims that are brought against you.
- The Ultimate Contingency Plan: Accidents tend to occur when you least expect it. Even the most cautious contractor can be blindsided by an accident, so it’s wise to have general liability to help you cover these unforeseen expenses in order to keep your business running smoothly.
Expect the Unexpected
General liability insurance is an effective tool to minimize fault and keep your construction firm in business when accidents threaten to throw your project off its schedule or diminish your bottom line. Bodily injury claims, property damage claims, completed products claims, faulty workmanship claims, personal and advertising injury claims, and immediate medical expense claims are all covered under general liability insurance. Contractors have to be willing to invest in prevention if they want to safeguard themselves against the unexpected. Risk & Insurance recently published a report detailing ten risks that are changing the way we approach liability. Many of these lesser-known liability risks could affect contractors, including:
- Medical cost inflation
- Traumatic brain injury
- Litigation funding
- Workplace violence
- Distracted driving
- Autonomous vehicles
- Social media
- Social responsibility
- Sharing economy
- Jury awards
Therefore, it’s imperative that contractors invest in general liability insurance if they want to be successful. Not only do the majority of projects require it, but it’s one of the only surefire ways to prevent yourself from going bankrupt from an accident you had no control over in the first place. To learn more about your legal obligations regarding general liability insurance, consult the Fort Lauderdale construction attorneys at Cotney Construction Law.
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.