Top 5 Shocking Facts About Construction General Liability You Never Knew
Construction general liability insurance is a crucial safeguard in the construction industry, yet many people remain unaware of its full scope and surprising aspects. This insurance protects contractors and businesses from significant financial risks, but there are shocking facts about it that could change how you view your coverage needs.
Fact 1: Construction General Liability Covers More Than Just Accidents
Most people assume construction general liability insurance only covers physical accidents on-site. However, it also protects against property damage, legal defense costs, and claims of bodily injury caused by faulty workmanship or products used during the construction process. This comprehensive coverage is essential for mitigating various risks beyond mere injuries.
Fact 2: Claims Can Arise Years After Project Completion
One shocking fact is that claims related to construction projects can surface years after the work has been completed. Issues like structural defects or property damage might not be immediately apparent. This means having an extended reporting period or ‘tail coverage’ in your liability policy could be vital to protect your business from late-emerging claims.
Fact 3: Not All Policies Are Created Equal
Construction general liability policies vary significantly depending on the insurer and policy terms. Some policies exclude certain high-risk activities such as demolition or scaffolding work unless specifically added. Contractors must carefully review their insurance details to ensure they have adequate protection tailored to their exact operations and risks involved.
Fact 4: General Liability Is Different From Professional Liability
It’s a common misconception that construction general liability covers professional errors or design flaws. In reality, these are typically covered under professional liability (errors and omissions) insurance. Understanding this distinction helps contractors avoid gaps in coverage that could lead to costly lawsuits over technical mistakes.
Fact 5: The Cost of Not Having Construction General Liability Can Be Devastating
Without proper construction general liability insurance, businesses face enormous financial exposure from lawsuits, medical expenses, property repairs, and potential business closure due to legal battles. Even a single accident claim can drain resources rapidly, highlighting why securing robust liability protection is indispensable for anyone in the building industry.
Understanding these shocking facts about construction general liability reveals just how vital this type of insurance is for protecting contractors and businesses against unexpected financial ruin. Ensuring you have appropriate coverage can safeguard your reputation and livelihood in the complex world of construction.
This text was generated using a large language model, and select text has been reviewed and moderated for purposes such as readability.
