Commercial Liability Insurance Coverage in 3 Easy Steps

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Have you been wondering how to get commercial liability insurance for your business? No matter what product or service your provide, commercial liability coverage is the foundation of insurance protection, keeping your assets where they belong – in your business bank accounts.

As a business owner, you know the threat of a lawsuit is real. One small incident or accident can lead to big trouble.

What are your chances of your business facing a lawsuit? With over 100 million cases filed in US state courts every year, the chances of your business being sued are good. And that’s bad news for business owners, when even something as small as a slip and fall accident can cost you an average of $20,000.

For many small businesses, coming up with that kind of cash could be devastating.

That’s why commercial liability insurance can benefit you, no matter what your business is or how you operate it.

Commercial liability insurance covers your business from the costs of lawsuits arising from:

  • Third-party injuries
  • Third-party property damage
  • Product liability
  • Advertising injury (libel, slander, and defamation)
  • Copyright infringement

 

Lawyers’ fees, court costs, settlements, and judgements can add up quickly, whether you are at fault or not. Your commercial liability (also known as business general liability) policy will cover these costs, so you don’t break the business bank trying to pay them yourself.

Every day that you operate without liability coverage, you are running the very real risk of having to pay the high costs of a lawsuit yourself. Luckily, you can get your business covered quickly, so you can rest easy and focus on the important things: like growth and profitability.

How to Get Commercial Liability Insurance

Follow these three easy steps, and you will be covered before you can say “low annual premiums.”

Step 1: Get an Instant Online Quote

An insurance quote will be an estimate of how much total insurance coverage you’re getting, and what that will cost you in annual premiums. If you would like any extra coverage added to your policy, you can get a price estimate for those “riders” at the same time.

Getting a quote is fast and easy.

Fill out a few simple forms with information such as your name, and the state in which you do business, and you will receive your quote via email. Give your quote a quick review, and then you’re ready for step #2.

Step 2: Complete Your Application

Once you’ve reviewed your quote, it’s time to complete your application for coverage. Don’t worry, we know that you are busy, and we don’t expect you to take the day off to come to our office. Instead, we bring the application to you. You can complete an application online at Citizens General, or over the phone with one of our in-house professionals.

If you do speak to one of our agents in person, feel free to ask about other options available to you to increase insurance protection for your business. You may even get some ideas on how to lower your insurance premiums, so don’t hesitate to pick up the phone. No time to chat? No problem. The online application can be filled out on your time, and submitted when you are ready.

With general liability coverage, you won’t need to chase around paperwork all day just to complete your application. If you live in a state where a contractor license is required, we will need that information. If you have any prior losses, we’ll ask for a loss runs report from prior carriers. If neither of these situations applies to your business, your application process will go even faster.

When your application is complete, it’s time to move to step 3.

Step 3: Sign and Submit Payment

Your completed application will be sent to an insurance carrier for approval, and then we will get you a bit of paperwork to sign. Once again, we know that you have a business to run. That’s why Citizens General makes it easy to sign your documents and submit payment. With our Docusign process, you can sign your documents electronically from the comfort of your home office, your bustling warehouse, or from a tablet in an airport. We will work with you from wherever your business needs you to be.

Once you have submitted your signed documents and payment, everything is sent off for processing on our end, and you don’t need to do anything more. Congratulations, your business has a safety net, and you can stop worrying about a potentially devastating lawsuit ruining everything you’ve created.

You have Liability Coverage. Now What?

Business general liability coverage can protect you from third-party lawsuits for injury and damages to someone’s person, property, or even reputation. But it doesn’t cover professional errors, employee injuries or discrimination suits, fraud, cyber theft, accidents with your work vehicle, or damage to your business property.

If there are other business risks that keep you up at night worrying, you may want to consider additional policies to fully protect your business investment. Combining additional business insurance policies to your general liability policy is not only a great way to further protect your business, it’s also an easy way to save on your premiums. Here are some other policies you may want to consider:

Workers’ Comp: If you have employees, workers’ comp insurance benefits can pay for their medical expenses and missed wages if they are injured or become ill while working.

Professional Liability: Service professionals can protect themselves from the high costs of defending against third-party financial loss lawsuits with professional liability coverage.

Commercial Auto: If you, or any of your employees, drive a vehicle for business purposes, you may need commercial auto to cover your vehicles in case of an accident.

Commercial Property: Commercial property coverage is meant to protect the building that your business rents or owns, as well as the stuff inside it, in the event of a fire, theft, damage, or vandalism.

Cyber Liability: If you handle sensitive customer information, including Social Security numbers or credit cards, you could be a risk to a data breach or hack. Cyber liability may cover the costs of notifying customers, credit monitoring, or your defense against an identity theft lawsuit.

Business Interruption: Business interruption claims are generally more expensive than property damage claims. Business interruption coverage may cover the costs of inventory held-up across the country, or even business lost while you are spending time defending yourself against a lawsuit.

Whether it is a stand-alone commercial liability policy, or if commercial liability is just the foundation of your protection, getting this essential coverage is a quick, easy, and convenient process. Get your quote today, and you can be covered in no time at all.

Not sure exactly what policies your business needs? Check out our business insurance tool to get a quick, individualized assessment of the insurance policies that can best protect your business.

10 Times Your General Liability Insurance Could Save The Day

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Craft brewers, graphic designers, ecommerce entrepreneurs, retail shop and food truck owners … you may be in different industries and have vastly different business models, but you all have one thing in common: a desire to protect your business.

There’s an easy way to protect your business from the threats you’re most likely to face as a business owner, no matter what your niche may be.

Smiling Business Owner

General Liability Insurance to the Rescue

Commercial general liability (CGL) insurance addresses the most common risks which could threaten your business. It’s the one insurance policy that just about every business owner can benefit from.

CGL protects you from the likelihood of a costly lawsuit or claim in the event of injury or damage to another person or their property.

Not sure if you could benefit from that sort of coverage for your business? Here are ten times general liability coverage would likely save the day (and your business).

1. Clumsy Clients

Do you regularly have clients visit your office? Whether they’re walking through the door to sign papers, or cruising in for a sandwich on their lunch break, every client who comes to your office or shop is a potential liability.

Imagine if a client came in to your office and tripped over a loose bit of carpet. If the client’s fall resulted in an injury, you could be responsible for the cost of the injuries.

2. Dangerous Floors

Keeping the floors of your store clean is a risk-reducing safety measure. But what if you had to mop the floors during business hours? If a customer slipped on a wet floor and broke a leg, your business could be liable for medical bills and more.

3. Home Based Mis-steps

Got a home-based business? Even if you don’t have customers or clients coming to your home office, you could still be responsible if someone was injured because of your business activities.

For example, if a delivery person was carrying a large box of supplies for your home based business and tripped on your doorstep, their injuries could be your problem.

4. Customers Who Can’t Handle the Heat

If you’ve finally realized your dream of owning a food truck, you may have more to consider than just your seasonal menu items. Imagine a crisp, fall day and a long line of customers waiting to try your new five-alarm chili.

But if you serve up a smoking bowl of too-hot-to-handle beans to a customer who burns their mouth on your offering, you could be liable for the injury.

5. Fired Up Landlords

Renting an office space has a lot of perks when you’re running a business. But it also comes with a certain amount of responsibility, as well. And if your laptop overheats in the middle of the night and causes a fire in the office, you may be responsible for the damage to your landlord’s property.

6. Soggy Neighbors

Let’s say you’ve just finished putting the finishing touches in a yard that you’ve been hired to landscape. You instruct your employee to give the freshly planted shrubs a good watering, and you head out to meet with your next client.

Your employee turns the water on, packs up his tools and equipment, and drives away without realizing the water is still running. In fact, no one notices the water is still running until the next day when the next door neighbor’s basement begins to take on water. One small mistake by your business could mean one big bill for cleanup and damage.

7. Music You Love (But Didn’t Buy)

You’re branching out and trying new things to market your business – like using Facebook ads and even putting videos on YouTube.

Your amateur video skills are commendable, but you didn’t realize that you could get in trouble for using unlicensed music. So you are completely surprised when you are facing a lawsuit for copyright infringement for using a popular song by a trending music artist.

8. Branding That’s Too Close for Comfort

You may have heard the saying “imitation is the sincerest form of flattery.” Imitation may be flattering to some, but if you’ve branded your business a bit too similar to your competition’s, imitation may land you in hot water.

If another business feels your logo, website, or branding is a bit too close to the same look and feel as theirs, you could be faced with a copyright

infringement lawsuit — and the high price tag that it brings.

9. Swiped Photos vs Stock Photos

The risks of marketing your business are everywhere, right down to the posts you write for your business blog. You know that images are an important part of your blog. But you don’t have the budget to spend on stock photos or the time (and equipment) to go out and take your own.

If you’ve made the mistake of using images you’ve found on the internet to liven up your blog— beware. Using unlicensed images without permission is one more way you can end up on the wrong end of a copyright infringement lawsuit.

10. Unfavorable Tweets

You know that you provide a superior service for your customers. In fact, you’ve heard so many horror stories about your competitor down the street — it seems like the whole town knows he’s a hack.

Taking to Twitter to let the world know that you’re in a class above “that guy” in 140-characters (or less!) seems like no big deal. But if your competition feels like you’re damaging his reputation, look out. Defending yourself against a libel suit can be a serious (and expensive) fight in court.

Judge With Gavel

How Commercial General Liability Can Cover ALL These Things – and More

Customer injuries, client accidents, damage to your landlords (or someone else’s) property, and even lawsuits for copyright infringement and reputation damage can cost your business big time.

From medical bills to repairs and the high price tag of defending yourself in court, these types of scenarios can be devastating to your business. Luckily, these are just the types of things generally covered by a CGL policy. You work hard to build your business. Liability insurance works hard to protect it.

Do You Need an Annual Audit of Your Contractors Insurance Policies?

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When was the last time you made a change to your existing contractors insurance policies? If you’re not conducting an annual review of your coverage, you could be leaving yourself exposed to unknown risks.

On the plus side, a quick phone call to check in with your insurance agent could have benefits beyond fortifying your coverage… you may qualify for discounts or lower rates, as well.

Still not convinced you should review your current coverage?

Here are a few of the things which may have changed in your contractor business this past year which could impact your insurance rates… or leave you exposed to unnecessary risks.

 

Smiling Man Standing By Truck

Are You Driving the Same Vehicle?

Did you buy a new work truck, SUV, van or other vehicle this year? Sure, insuring a new work truck is kind of a no-brainer. But what other vehicle changes did you make this year? If you purchased a new vehicle for your personal or family use that you will also use for work purposes, you may have a coverage gap if you haven’t included it in your contractors insurance.

What about vehicles you’re no longer driving?

Don’t pay for commercial auto coverage for a vehicle that’s just sitting unused somewhere, either.

Who’s Helping You?

Your contractors insurance may need to be adjusted if you’ve hired (or fired) employees, or if you’re planning on utilizing subcontractors to help you get the job done.

Workers’ comp insurance is often required if you have employees working for you. Your workers’ comp premiums are calculated per payroll dollars. If you’ve added new employees or let people go this past year, you may need to make adjustments to your workers’ comp insurance.

 

Contractors Working Together

What Equipment are You Using?

If you’ve expanded your equipment or tools this past year, you’ll want to be sure you’re covered against loss, damage, or theft. Let’s say you recently purchased a new generator, and you’re transporting it to a project site one morning in a trailer. You drive over a particularly rough patch of pavement, causing the trailer gate to pop open and sends the new generator flying out into the street.

Let’s hope your tools and equipment coverage is up to date and your new generator has been listed as a scheduled item.

Where’s Your Base of Operations?

Are you running your business out of a home office, a warehouse, rented office space, or building that you own? If you’ve moved your business location, expanded your office space, or downsized to a home office, your commercial property coverage may need to be adjusted.

Even a business operating out of a home has it’s own unique insurance requirements.

If a client comes to your home office to go over plans or sign a contract, and slips on your front porch, your homeowner’s insurance may not cover the incident. And if a kitchen fire spreads and damages your office equipment and other work materials, you may also find an unpleasant coverage gap for your business activities. You may think your homeowner’s insurance is enough to cover your risks, but you’d be surprised to learn what it won’t cover.

An Annual Contractors Insurance Review: Peace of Mind and No Surprises

You take your vehicle in for an oil change every 6,000 or so miles. You go see the dentist twice a year. You file your quarterly tax returns, no exception. Consider an annual review of your contractors insurance policies in the same light.

A regular check-up will help keep your safety net in good working order, prevent coverage gaps, and your premiums and rates right where they need to be.

In other words, a quick call to your insurance agent will give you peace of mind, and keep unpleasant surprises at bay.

How Handyman Insurance and Risk Management Can Grow Your Business

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What sort of risk management practices do you use for your handyman business? If the answer is little to none, you’re in luck.

Risk management is something that every business — from a one-man operation to the biggest corporations — can benefit from.

If you know how to combine basic risk management principles with some affordable handyman insurance, you have a blueprint that may lead your handyman business towards growth and increased profits.

Interested?

Here’s what you need to know.

Protecting Your Handyman Business: Risk Management 101

If you offer handyman services, you’re a business owner. And there’s a chance you may be a sole proprietor of your business, which means your personal assets are vulnerable to any debts or obligations that arise from your handyman business.

In other words: managing your handyman business risks can protect your personal assets, such as your savings and even your home.

Risk management is the practice of identifying potential risks you may face while running your handyman business, analyzing them, and taking the necessary steps to minimize their impact.

 

Risk Management Steps to Protect Your Handyman Business

  1. Identify Risks
  2. Measure Risks
  3. Control Risks
  4. Transfer Risks

Identifying the Risks You Face as a Handyman

The first step in risk management is determining what risks you specifically face while operating your handyman business.

Let’s say you’re involved in an auto accident while driving your work vehicle on your way to a job. Your business name is very prominently displayed on the sides and back windows of your truck, which had all of your tools and equipment needed to complete the day’s work.

Not only could an auto accident cause damage to your own vehicle, damage to someone else’s vehicle, and lead to the possibility of injuries and medical bills… it could also destroy the tools of the trade you’ve spent years acquiring.

An auto accident can happen to anyone at any time, but you face some other risks while you operate your business, as well.

Let’s say you are inside a client’s home repairing drywall, and you have to move a large piece of furniture to complete the repair. After the work is done, the client complains that you’ve damaged their antique serving table and scratched their imported hardwood floors in the process. Third-party property damage is a risk you face every time you walk into someone else’s home to do a job.

Accidents, property damage, injuries, lost equipment… identifying your risks is the first step in managing them.

Measuring and Controlling Risks

The next steps in risk management include measuring and controlling your handyman business risks.

Measuring a risk: Determining what the likelihood is of a risk occurring, and what the potential results would be if it happened.

Let’s look at the above-mentioned auto accident scenario again. According to the National Highway Traffic Administration, an auto accident happens every minute on the road. As many as 20-50 million accidents every year. And the cost of repairing or replacing your vehicle, a third-party vehicle, paying medical bills, and replacing damaged property could run in the tens of thousands of dollars. So this risk measures as very likely to happen, and very costly.

Controlling a risk: Taking steps to reduce the likelihood of a risk occurring.

So how do you control the risk of an auto accident from happening? You take measures such as fastening your seatbelt, removing distractions, and driving safely.

If you want to control a risk of damaging customer property, you may do things such as removing your work boots inside someone’s home, using care when moving furniture, and applying drop clothes before painting.

Transferring Risks with Handyman Insurance

No matter how many precautions you take to control a risk, there’s a good chance you won’t ever be able to completely eliminate the possibility of an unexpected accident or event occurring. Some risks simply can’t be controlled.

These risks should be transferred to insurance coverage that will act as a protective safety net for your business.

No matter how safely you drive, you can never eliminate the chance of an auto accident. If you have commercial auto insurance, however, you can transfer that risk to your insurance policy.

No matter how cautious you are when performing your work, there will always be the risk of a third-party injury or property damage occurring. If you have general liability coverage, you can transfer that risk away from your handyman business.

How does Risk Management and Handyman Insurance Lead to Business Growth?

Now that you’ve got the basics of risk management down, it’s time to get to the big payoff.

Lower Insurance Rates

Certain risk management techniques could lead to lower rates, or a “credit” on your insurance policies. Your attention to risk management can literally put more cash back into your pocket in the form of savings on your insurance rates.

And the longer you go with continued coverage (no lapses!) and no incidents, the more you may be able to save on your insurance rates.

Increased Cash Flow

The biggest payoff to implementing risk management and adequate insurance coverage for your handyman business is keeping your hard-earned cash where it belongs – in your bank account.

Instead of paying out-of-pocket for unexpected incidents and accidents, you can use your cash to grow your business.

  • Invest in digital advertising
  • Build a website
  • Hire an employee
  • Purchase new tools and equipment

More Customers

One final perk to implementing risk management and handyman insurance: getting more business. When you advertise your insurance coverage, or tell potential clients the safety measures you use as part of your risk management practices when performing work inside their home, you are going to stand apart from the competition. Potential clients will appreciate your professionalism, and your business will continue to grow.

Professional Liability Insurance and the Service You Didn’t Provide

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You probably already know that professional liability insurance may protect you in the event you make a professional mistake. What you may not realize is that professional liability insurance can also help shield you from the effects of a lawsuit or claim… even for a service you didn’t provide.

If you’re not sure how you could need insurance against something you didn’t offer or provide to a client, keep reading.

Because for many professionals, this could happen to you.

The Service You Didn’t Provide

Plenty of wedding photographers have horror stories about a couple who just couldn’t be pleased by the photogs on the big day, but Alonzo still has the memories of a lawsuit to go along with his cautionary tale.

Alonzo had contracted with a couple to photograph their wedding, as well as their wedding shower and a session for engagement photos.

After shooting the engagement photos and wedding shower, Alonzo and the bride began to clash. The bride pushed him to deliver photos before they were ready. She complained about the quality of the photos. She demanded a reshoot of the engagement pictures.

Alonzo soon realized there was little chance he would be able to deliver wedding pictures that would please this couple. With four months to go before the couple’s big day, he notified the bride and groom that he would not be able to shoot their wedding. He returned their deposit money as a show of good faith, and recommended another photographer who would be available on that date.

The bride and groom were furious. They brought a lawsuit against Alonzo for not photographing their wedding as contracted. They claimed the other photographer’s photos were subpar. They wanted to be reimbursed for the cost of the secondary photographer, plus “pain and suffering” for the trauma that Alonzo allegedly put them through by cancelling their contract before the wedding.

The wedding that Alonzo never took pictures of became a lawsuit and headache that he will never forget.

The Promise You Didn’t Deliver

April had made an enthusiastic pitch to her client. She was sure that her agency could implement strategies that would lead to a 20% increase in sales. Her client was impressed, and signed the contract.

Unfortunately, April ran into roadblock after roadblock while working with her client. She felt helpless as her proposed strategies were put on hold, reviewed, put on hold again, and even rejected by the client. She struggled to get the approval and resources she needed to get the results she promised.

When her contract was up, she was nowhere near to the 20% increase in sales revenue that she had promised her client. In fact, her efforts had gotten her only a tiny increase to report.

April felt dejected from the loss. But that was only the beginning of her issues. Because the (now former) client felt that her agency owed them the money it paid to her agency. And the client was prepared to bring a lawsuit against April and her agency for not delivering on her professional promise.

The Mistake You Didn’t Correct

Jason worked as a website design and developer, and had grown his business from the occasional freelance side-project to a full-time career. He was even able to hire his first employee. Business was good, clients were happy, and he had enough referrals to keep him, and his employee, busy.

Jason was working on a redesign project for an ecommerce store. His employee had mentioned that there was some “bad code” in the existing site, and Jason assumed his employee had taken steps to clean it up. Unfortunately, the code remained in place and the website crashed soon after the redesign was complete.

The online store was down for a week, resulting in lost sales and revenue. The owner of the store was livid, and brought a suit against Jason to cover the costs of repairing the site and to recover the lost revenue.

The mistake that Jason’s employee had made was not correcting the error when he came across it. Not correcting the mistake led to a costly lawsuit and one seriously unhappy customer.

Do You Need Professional Liability Insurance?

If you provide a service to clients or customers there is a very good chance you could benefit from the protective safety net of a professional liability policy. That’s why accountants, advisors, consultants, designers, developers, attorneys, photographers, and medical professionals consider professional liability insurance a must-have policy.

Professional liability insurance may cover the costs of lawsuits if you provide (or fail to provide) a service that results in harm or financial losses to your clients. Whether you’re found to be at fault or not, defending yourself against a lawsuit can get costly. Professional liability can keep the steep costs of lawsuits, attorney’s fees, settlements, and judgements from damaging your business.

And it can even help protect you from a lawsuit for a service you didn’t provide.

Real Life Examples of General Liability Claims

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It’s one thing to be told that general liability insurance can protect you from the most common risks you face as a trade or general contractor, such as third-party injuries or damage to someone else’s property. It’s quite another thing to hear it direct from the contractors who have been in those exact scenarios themselves.

If you’re not sure if you need liability insurance for your contractor, construction, or handyman business…keep reading. The best advice comes from someone who has faced a lawsuit firsthand, and seen the saving grace in having general liability insurance.

Here are the tales of three real-life contractors just like you, and their brushes with construction disaster.

#1. The Case of the Curious Visitor

Sometimes the biggest liability on a project is the one thing you can’t control or manage: an on-site visitor. This is something one general contractor, John, learned the hard way.

John was hard at work on a residential remodel project when the homeowner brought a friend over to check out the progress. The curious visitor was admiring John’s work when he was suddenly struck in the head by a ladder that had been propped up against a wall.

The homeowner sued John for his friend’s injury, expecting the contractor to pay the price for medical and other expenses from the accident.

Luckily, John had general liability insurance. His policy covered the costs of defending himself against the lawsuit, which included attorneys’ fees, court costs, and a settlement.

#2: A Soggy Tale of Water and Woe

Miguel, an experienced drywall contractor with 15 years in the trade, was working on a basement drywall repair project that should have been pretty cut and dry. In order to reach the damaged area, his employees disconnected the home’s sump pump.

After the job was done, neither Miguel or his employee remembered to reconnect the small pump.

Instead of re-routing ground water away from the home, the sump pump sat unoperational. After the drywall contractor and his team left, the basement flooded and the home suffered from extensive water damage.

Miguel’s general liability policy covered the costs of repair for the property damage that resulted from the incident. The water damage could have cost Miguel a huge bill for repairs, but thanks to his general liability insurance it only cost him a deductible.

#3: All it Takes is One Mistake

With more than thirty years in the business and a perfect track record, Tony was an electrical contractor in high demand. When a local commercial project was being built, Tony was their first pick to install lighting throughout the building.

Unfortunately, Tony’s 30-year track record went up in smoke when an electrical fire decimated the commercial building. A fire that ultimately led back to Tony’s completed work.

Tony’s bad luck didn’t stop with the first mistake made in his life-long career, either.

Because he had gone so long without an accident, injury, or claim to his name, Tony had decided to save some cash earlier that year and let his general liability policy lapse. He had no coverage for the incident, and had to pay for the property damage and lawsuit that followed out of his own pocket.

The Moral of the Story

Two out of three of our tales concluded with a happy ending. The contractors filed a claim with us, and we were able to cover the incident. The cost to each was only a fraction of what it could have been. The contractors paid their deductible and went on their way.

But not every story ends so well, and for one of our contractors, one small mistake resulted in a major financial setback.

General liability insurance provides a safety net to protect your business in the event of an unforeseen incident. Like most of your safety equipment, there’s a chance that may never need it to kick in and do its job. But the one time something does go wrong, you’re going to be very glad you’ve got all your protective measures in place.

Construction is a high-risk industry, and there’s always a chance a job could result in accident, injury, or property damage to a third-party. If you have general liability insurance, then your story could be one more that ends happily ever after.

What Does Contractor Pollution Liability Insurance Cover?

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Your construction insurance coverage is there to protect you from the unexpected incidents that could happen on (and off) the project site. Injuries, property damage, auto accidents, theft of your tools and equipment, and even damage to the project itself. But there may be a hole in your current coverage that is leaving you exposed to a major risk:

The risk of a pollution incident.

Environmental pollutants are a big concern for general and trades contractors.

And you don’t have to work with fuel, oil, or hazardous chemicals to run the risk of exposing yourself to a pollution incident.

Two Construction Workers Looking at a Broken Pipe

General and trade contractors not only have to worry about the liability and damages for substances they bring onto a site, such as paints, sealants, lubricant oils, and asphaltic cement, but also the potential for hidden contaminants which may already be present on a project site.

Old paint containing lead. Asbestos-containing materials. Contaminated fill dirt.

You may be surprised how often you run the risk of releasing contaminants, aka pollutants, into the environment as a result of your work.

  • Incomplete or improper HVAC system construction could result in mold and fungus being released into the air of a residential or commercial building.
  • A remodeling job could disturb asbestos-containing materials.
  • Sandblasting a bridge could release dust-sized particles of lead paint into the air.
  • Site excavation could disturb contaminated soil.
  • Vandalism of a project site could result in a fuel, oil, or chemical spill.

What you Didn’t Know about You GL Coverage

Your general liability coverage is there to protect you from claims for bodily injury or property damage as a result of your work. Unfortunately, most GL policies contain some exclusions that prevent the policy from covering every possible incident.

And one of the most notable exclusions in a GL policy is the “total pollution exclusion” clause that can leave you holding a costly bill if a pollution incident occurs.

Luckily, you can patch this hole in your GL coverage and shore up your insurance defenses with pollution liability coverage.

Factory Polluting the Environment

What Does Pollution Liability Insurance Cover for Contractors?

Contractor pollution liability insurance will generally cover bodily injury, property damage, and expenses incurred in investigating, settling, or defending a pollution claim. Pollution liability insurance will typically also cover cleanup costs to remove, neutralize, and restore damaged property as part of the covered damages.

Understanding Your Pollution Coverage

Pollution insurance policies can differ, so be sure you understand the following two key components of your coverage:

1. What is a pollutant?

Your coverage may provide a broad definition of what is considered a pollutant, or it may be more narrow. Generally speaking, a pollutant is often defined as:

“An irritant or contaminant, whether in solid, liquid, or gaseous form, including — when they can be regarded as an irritant or contaminant — smoke, vapor, soot, fumes, acids, alkalis, chemicals, and waste.”

Talk with your construction insurance professional to be sure your coverage is broad enough to cover all pollution risks, or at least covers the specific risks you may face in your trade.

2. Gradual vs Sudden Pollution Release

A pollution policy that covers both gradual and sudden pollutant releases will give you the broadest protection against accidents and mishaps. If your policy only covers a sudden, accidental pollution incident, you could be left at risk for pollution events that aren’t discovered until months (or even years) down the road.

The best way to protect your business from the high costs of a pollution event is to be sure your policy covers both gradual and sudden events and has a broad definition of what is considered a pollutant.

Fumes from sealants, floor coatings, and finishes; disturbing lead paint, asbestos-containing materials, or naturally occurring asbestos; excavating contaminated soil; leaking storage tanks… you run the risk of a pollution event happening on a daily basis.

Pollution incidents could quickly add up. Property damage, bodily injury, and clean-up costs are just the start. You could also be facing some major reputational damage as a result of one small accident, too.

Only pollution liability insurance will offer you the peace of mind and broad protection against the risk that you unearth, disturb, or release a pollutant while doing your job.

What\’s Your Construction Risk Management IQ?

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What’s Your Construction Risk Management IQ?

 

What's Your Construction Risk Management IQ?

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Are you a super savvy, risk reducing master on the jobsite? Take this short true or false quiz to find out just how safe and protected your business is.

Business Risk Management

True or False? I can start my contracting business without being licensed and insured.

False: In certain states such as California, you must be “duly licensed” by the Contractors State License Board. If you are doing business in California, you are also legally required to disclose to your client whether or not you carry general liability insurance. While states all have different licensing and insurance requirements, being licensed and insured is the best way to improve your chances of getting work, and protect your assets once you have started on a project.

True or False? I only need to be bonded for public projects.

False: Bonding not only gives you the ability to bid on public projects; more and more private projects are requesting bonded contractors and subcontractors, as well. If you are not bonded, you could miss out on lucrative private projects. Bonding will give you the competitive edge over non-bonded competition, and provide access to more work.

True or False? A construction contract completely protects me from liabilities and lawsuits.

False: A contract is an extremely useful tool for protecting you and your business and reducing liability risks, but only when it contains the right clauses and conditions.

Especially if you are just starting out in the construction industry, it’s smart to have a legal professional experienced with construction contracts guide you through the process.

True or False? A legal judgement against my business may affect my business and personal assets.

True: Your personal assets can be at risk in the event a judgement is made against your business. Imagine as scenario where you are involved in a lawsuit and a judgement for $1M is awarded against your business. If your insurance coverage limits max out at $500,000, your business will be responsible for the remaining $500,000. If you do not have the assets available in your business, your home and other personal assets may be at risk, depending on how your company was set up and whether or not it is incorporated.

Safety Risk Management

True or False? It is the responsibility of the project owner to keep the project site safe.

False: According to OSHA Safety and Health Regulations for Construction, it is the responsibility of the employer to initiate and maintain such programs for accident prevention.

“No contractor or subcontractor for any part of the contract work shall require any laborer or mechanic employed in the performance of the contract to work in surroundings or under working conditions which are unsanitary, hazardous, or dangerous to his health or safety.” -OSHA

Bottom line: it is your responsibility to provide a safe work environment for your employees. You write the checks, you keep them safe.

True or False? One in every five private industry worker deaths occurs on a construction site.

True: It is an unfortunate fact that 20% of workplace deaths happen within the construction industry. According to OSHA, the leading causes of worker deaths on a construction site are:

  • Falls
  • Struck by object
  • Electrocutions
  • Caught in/between

These “Fatal Four” causes should get your complete attention and concern on a job site. Incidentally, fall protection is the #1 most cited OSHA violation on construction sites, as well.

True or False? If an employee is hurt on the job, workers’ comp will help them with medical and other expenses.

True: Carrying workers’ comp insurance will protect you and help your employees in the event of a workplace injury. Workers’ comp will help provide for medical and recovery expenses for your employee. This reduces the risk that an employee will try to get reimbursed for such expenses directly from you, and may even cover your legal fees should such an event occur.

Project Risk Management

True or False? My general liability insurance covers the project property during construction.

False: Course of Construction Insurance, sometimes known as Builders Risk, is the only way to reduce risk and protect property during construction. This type of insurance prevents you having to come out of pocket for repairs/replacements if burglary, theft, vandalism, fire, flood, or some other unforeseen event should damage the property and your materials during the course of construction.

True or False? My commercial auto policy protects my tools and equipment on the way to job sites.

False: Commercial auto insurance will protect your vehicles and cover your assets if you or an employee get into an accident while on the job, but your tools and equipment are not covered under this policy. The only way to protect your tools and equipment on the road is to carry tools and equipment insurance (also known as inland marine).

How did you do? Are you a construction risk management master-of-all-trades?

Or do you need to draw up some blueprints on how to reduce your risks on and off your project sites?

Managing construction risks is an important part protecting your employees, your assets, and the future of your business.

Smiling Female Contractor

 

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