Does General Contractor Insurance Cover Employee Injuries?

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The construction industry is a very demanding and aggressive one. It’s also dangerous as there is a greater risk of sustaining an injury. Since these dangers exist, having proper liability insurance is crucial in protecting yourself.

Unfortunately, you can be fooled into believing General Contractor Insurance covers injured employees. In reality, this type of insurance does not cover your wounded employees. A general liability insurance policy only covers injuries and damages to your properties. In other words, it includes protection for yourself, your assets, and your business. So, even if you have only one worker, this insurance doesn’t cover him.

Workers Compensation

On the other hand, Workers Compensation insurance covers injuries sustained by workers on a job. Your employee could file a claim for Workers Compensation and have their medical and rehabilitation costs, additional training, and their lost wages covered. However, you need to remember that Workers Compensation covers only job-related injuries. Examples include:

  • A heart attacked caused by the work being carried out.
  • An injury caused by repetitive use.
  • A pre-existing condition made worse because of the work they do.
  • A stroke caused by work, amongst other contributing factors.

Coverage of General Contractor Insurance 

The use of general liability insurance applies to the following circumstances:

  • Injury Claims

General Contractor Liability insurance covers your medical expenses, and in extreme cases, funerals. It also includes court-awarded compensations. Take note that this insurance is not a workers’ compensation type of coverage. It is only applicable to you.

  • Damaged Claims

When you accidentally damage your customer’s properties, the liability insurance will cover such costs on your behalf. This is particularly useful as minor damage can occur so very easily.

  • Product Claims

This insurance also covers damages caused by equipment your company installs.

  • Copyright Claims

This insurance also helps cover the design of your product. If your competitors have a very similar design as yours, the insurance covers copyright claims, and you can sue them.

Cost of Obtaining a General Contractor Insurance Policy

General Liability insurance costs depend on the risk of the type of work you’re doing. If the type of business you do is low risk, you should consider covering it under the Business Owner’s Policy. Commercial contractors with a higher risk of damage, like a roofing contractor, are the ones with the most significant insurance coverage. It’s best to register your business with an insurance company rated B at minimum. An insurance company rated C, or lower is a negative sign and might be a problem when it comes to processing your claims.

Limits of a General Contractor Insurance 

When you have a general liability insurance policy, this type of insurance has its limitations. For example, you need to set limits per occurrence. You must also set aggregated values. Limitations also cut across fire damage to properties under construction and medical expenses.

If, in any case, a client, a third-party vendor, or an employee sustains an injury at work, act immediately to protect the business. No matter how small or large your business is, having the proper insurance against liability is always the best policy.

If you’d like more information about liability insurance, why not contact Contractors Liability or call us at (866) 225-1950 for a 5-minute quote?