Why Do Construction Companies Need General Liability Insurance?

Operating a construction business is a high-risk endeavor. Relying on construction insurance can protect companies when things go wrong. However, the biggest part of the policy is general liability insurance.

General liability insurance can effectively cover a construction business against several common risks, including a customer getting injured, property damage, advertising and marketing disputes, and more. The policy helps your company gain contracts while simultaneously protecting your investment against expensive lawsuits. General liability insurance protects your business against common issues that can occur in the construction industry, such as property damage and third-party injuries.

This coverage should ideally be a significant part of your construction insurance in Amarillo, TX, because it helps cover any medical bills or repair costs. Here’s an overview of how general liability insurance can protect your construction business.

  • Serious Customer Injuries

If you are working at a site and a customer trips over a toolbox while you’re working, you could be held liable for their injuries. If the injured party pursues legal action, liability insurance covers your legal fees, settlements, and the injured party’s medical bills. In serious cases where the injured party dies from the injuries sustained, liability coverage covers their funeral expenses.

  • Product Liability Coverage

As the construction company owner, it’s essential that your general liability policy should include product liability coverage. The coverage protects your company if an injury or damage occurs due to negligence on the construction project. Product liability coverage protects your organization if the impacted party pursues legal action over the faulty work.

  • Libel/Slander

When you advertise your company, you’ll need to avoid copying someone else’s marketing campaign and content. If your competitor purses legal action, liability insurance will cover you. Your legal fees are covered as you fight the allegations of copyright infringement, libel, slander, and defamation of character.

  • Customer Property Damage

A large accident can be very costly for construction companies. General liability insurance protects your company if you accidentally damage a client’s property. This gives you peace of mind if you have to go to court for the damages or pay to cover the property damage.

  • Things to Consider

While general liability coverage is the foundation of your construction insurance in Amarillo, TX, there are still some areas where you are left unprotected. Luckily, there are multiple types of coverage that you can add to your policy to round out your policy. If you use vehicles to help transport your tools, commercial auto insurance is a good addition to your policy.

This covers your company vehicles if they are stolen, damaged, or vandalized. You can also add equipment insurance, which helps repair and replace your equipment if it’s stolen or damaged. Builder’s risk coverage protects your company against any damage caused to a site that’s still under construction.

If you have employees, workers’ compensation is required to operate your company. Workers’ compensation protects your company if an employee is injured on the job. The policy covers their medical treatment and prevents you from being sued. If one of your employees makes an error on a project, professional liability coverage protects your company.

General liability insurance gives your construction company a safety net if something goes wrong. If you have any questions about any extra coverage that you would like to add to your construction insurance policy, the professionals here at Advanced Insurance Group will assist you. Contact us today to get your customized general liability insurance plan.


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