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What Does General Liability Insurance Cover for Contractors? Part 1

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General liability insurance was created to cover the cost of third-party lawsuits related to property damage or injury. If you are sued, even if you are not at fault, you have legal fees to pay. These fees would come out of pocket without general liability coverage. Educating yourself about your coverage and its limitations can help you make sure you receive the compensation and protection you need.

In part one of this series, a Knoxville contractor lawyer shares some insights about general liability insurance coverage. Read about complete products coverage in part two.

Property Damage

If a project involving pipe installation or repair resulted in water damage in the building, the owner might attempt to sue the contractor. Water damage can ruin flooring and drywall, requiring major repairs. If the project includes remodeling, it’s important to know that damage to a client’s property is not covered by property damage liability coverage.

Bodily Injuries

Even though you run a safe jobsite, sometimes accidents happen. A client checking out the project in progress could trip over an extension cord or slip on a wet floor. Bodily injury coverage can also help with on-the-job-injuries for workers on site.

Reputational Injuries

If a contractor took an ad out and mentioned how bad a competitor’s work was compared to their own, it could set a complaint in motion. Slander might not be that bold. It could be as simple as a contractor speaking with an owner about a competitor in a negative way. If the competitor believes the statements to be false and negatively affect their business, they may try to sue for reputational injuries, including lost revenue.

General liability coverage can protect your assets, however, legal representation matters, so consult a Knoxville contractor lawyer for all of your legal needs including corporate transaction law, dispute resolution, license defense, contract review, and more.

If you would like to speak with our Knoxville contractor lawyers, please contact us today.

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.