3 Reasons Why General Liability Insurance is Essential
- To make sure you don’t have to pay for your subs’ claims out of your own pocket.
- To provide and pay for your legal defense - over and above your policy limit - when you are named in suits for damages involving your subs’ liability losses.
- To meet your obligations under state laws that require insurance - as in all licensed contractors.
Independent contractors need their own General Liability insurance. However, if they don’t have this vital protection, the General Contractor they work for will be held responsible for their liability losses – including costs – when an accident happens, or a lawsuit is filed.
Does Your General Liability Policy Cover Losses of Subcontractors?
With the RWC Insurance Advantage, the answer is yes, but some other insurance companies specifically exclude losses caused by subcontractors. Be sure to read your policy carefully, or call us to discuss how we cover this serious exposure.
For more information, see our blog post titled Beware the Subcontractor Gap.
3 Examples Why You Can Be Held Liable For Your Subs' Liability Claims
- A woman was walking her dog past an active worksite around dusk and tripped over a mason’s line left by a subcontractor. She suffered two broken arms and lacerations to her face in the fall and was unable to work for several months.
- An independent excavation contractor failed to provide for proper drainage of a corner lot despite the fact the plans showed the correct grade required. That winter, melting snow covered the intersection next to the site and re-froze after sunset causing numerous traffic accidents on the ice.
- Another subcontractor failed to properly install the catch basin for the washing machine in the second floor laundry room. The homeowner left for a two-week vacation. Upon their return they discovered that 22,000 gallons of water from a burst hose had devastated their home.
The General Contractor is the one in charge of the project. He or she is responsible for overall safety at the worksite as well as the overall quality and fitness of the completed project. These actual claims illustrate the wide range of potential losses.
3 Ways You CAN SAVE MONEY ON Your GENERAL LIABILITY PREMIUM
- Regular meetings with your employees and subcontractors,
- The use of safety literature and/or videos,
- Awards for safety and penalties for unsafe practices. Contact us today for more details.
Do you have a formal safety program? A formal safety program can earn you up to 25% off of your general liability premium.
4 Things GENERAL LIABILITY IS NOT
- General Liability does NOT cover work related injures to your employees.
- It does NOT pay for damage to your property.
- There is NO coverage under General Liability for cars or trucks owned by and/or used in your business.
- It does NOT cover your professional liability if you are an architect, surveyor or engineer.
With so many insurance policies needed to protect businesses, it is easy to get off track when discussing your General Liability insurance needs. (Please read your policy to be aware of all the things that are not covered. Call us to today discuss your coverage needs.)
YOUR GENERAL LIABILITY AND WARRANTIES ARE UNDER THE SAME ROOF
With the RWC Insurance Advantage working with RWC, there are no disputes over "is it a liability loss, or a warranty claim?" If it is a covered loss either way, you won't get caught in the middle.
STATISTICS SHOW - Know Your Risk
According to the US Department of Labor, slips, trips and falls cause 15% of all accidental deaths in the US and are second only to deaths caused by motor vehicle accidents. You know what a dangerous place an active worksite can be. If you don’t have General Liability insurance, you still have risk.
INSURANCE IS REALLY AN INVESTMENT.
Home building is a complex undertaking. The potential for accidents affecting the public are many. You need an insurance company that specializes in your industry. The RWC Insurance Advantage is that company.
*Availability subject to Underwriting.