4 Misconceptions About General Liability Insurance for Contractors

4 Misconceptions About General Liability Insurance for Contractors

General liability insurance is a vital investment for contractors in Texas, offering protection against unexpected events that could threaten their business. However, there are several misconceptions surrounding this type of insurance that could leave contractors vulnerable. In this blog, ContracSur aims to debunk four common misconceptions about general liability insurance and shed light on the importance of having the right coverage.

insurance document

Coverage Limits

One prevalent misunderstanding among contractors is that general liability insurance provides unlimited coverage. However, it is crucial to note that every policy comes with coverage limits that may vary based on the specific terms and conditions set by the insurance provider. Contractors should carefully assess these limits to guarantee they have adequate coverage that aligns with the size and scope of their projects.

worker injury

Worker Injuries

Another misconception is that general liability insurance extends to covering injuries sustained by workers while on the job. While this insurance can protect against third-party injuries and property damage, it typically excludes coverage for employee injuries. Contractors should consider obtaining workers' compensation insurance to ensure comprehensive coverage for workplace accidents involving their employees.

contractor talking with clients

Completed Operations Coverage

Contrary to popular belief, liability can extend beyond project completion. General liability insurance often includes completed operations coverage, safeguarding contractors from liability issues that may surface even after a project has been finalized. This additional layer of protection can prove invaluable in scenarios where post-completion problems arise.

distressed contractor

Professional Liability

A common misconception is that general liability insurance suffices to cover errors in professional services provided by contractors. In reality, professional liability insurance — a distinct type of coverage — is specifically designed to shield contractors from claims of negligence, errors, or omissions in the services they offer.

As misconceptions about general liability insurance for contractors persist, it is imperative for Texas-based contractors to have a clear understanding of the coverage they need to safeguard their businesses effectively. By dispelling these common misconceptions and working closely with experienced insurance providers like ContracSur, contractors can benefit from insurance policies that provide tailored protection and peace of mind. Contact us today to get informed and get covered!

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