As a contractor, navigating the risks associated with running a construction business is critical to your long-term success. Accidents, property damage, and lawsuits can quickly drain resources and impact your operations. That’s where a Commercial General Liability (CGL) policy becomes invaluable. This essential insurance safeguards your business against a wide array of liabilities, ensuring you can focus on your projects while staying financially protected.
In this article, we’ll explain how a CGL policy works for contractors, discuss ten types of claims it typically covers, and outline how much coverage you can obtain. Additionally, we’ll explore the benefits of a Commercial Umbrella Liability Policy for added protection and highlight how BGES Group, one of the Tri-State area’s construction insurance specialists, can help you secure the best coverage.
What Does a Commercial General Liability Policy Cover?
A CGL policy provides contractors with financial protection against third-party claims arising from bodily injuries, property damage, and personal or advertising injuries. This policy is a cornerstone of a contractor’s risk management strategy, covering both legal defense costs and damages that the contractor may be legally obligated to pay.
Whether you’re a general contractor, subcontractor, or specialty contractor, a CGL policy ensures you can handle unforeseen claims without jeopardizing your financial stability.
Ten Types of Claims Covered Under a CGL Policy
Here are ten common types of claims that may be covered under a contractor’s CGL policy:
1. Bodily Injury to a Third Party
If someone visiting your job site slips, trips, or falls and gets injured, your CGL policy can cover medical expenses and potential lawsuits.
2. Property Damage
Accidental damage caused to a client’s property, such as breaking a window or damaging a neighboring structure during construction, can be covered.
3. Completed Operations Liability
If work you’ve completed causes damage or injury after the project’s completion, your CGL policy provides coverage.
4. Premises Liability
If a visitor to your office or workshop is injured due to unsafe conditions, your policy may cover their medical expenses or legal claims.
5. Products Liability
Coverage applies if a product you’ve installed or supplied causes harm, such as a faulty electrical system that results in a fire.
6. Personal Injury Claims
Allegations of defamation, libel, or slander made against your business may be covered.
7. Advertising Injury Claims
Claims related to copyright infringement, trademark issues, or false advertising involving your business can also be included.
8. Contractual Liability
Coverage extends to liabilities you’ve assumed in contracts, such as indemnification agreements with clients.
9. Fire Legal Liability
If you rent office space and accidentally cause a fire, your CGL policy may cover the damages to the landlord’s property.
10. Pollution Liability (Limited)
Certain accidental pollution incidents, such as spilling a small amount of hazardous material, may be covered, depending on the policy.
How Much Liability Coverage Can You Get?
Most CGL policies offer coverage limits ranging from $1 million to $2 million per occurrence, with aggregate limits that can go higher. These limits define the maximum amount the insurer will pay for a single claim or all claims within the policy period.
However, in high-risk industries like construction, even these limits might not be sufficient to cover potential losses. For example, a major accident involving multiple injuries or significant property damage could exceed your policy limits, leaving your business vulnerable.
Enhancing Coverage with a Commercial Umbrella Liability Policy
To bolster your financial protection, you can purchase a Commercial Umbrella Liability Policy. This policy provides an additional layer of coverage that kicks in once the limits of your underlying CGL policy are exhausted.
Benefits of a Commercial Umbrella Liability Policy include:
1. Higher Coverage Limits
Umbrella policies often provide millions of dollars in additional protection, ensuring your business can handle even catastrophic claims.
2. Broader Coverage
These policies may extend coverage to certain risks not included in your primary CGL policy.
3. Cost-Effective Protection
Umbrella policies are typically affordable compared to the potential costs of a high-value claim.
For example, if your CGL policy has a $2 million limit and a claim requires $3 million to resolve, your umbrella policy can cover the additional $1 million.
Why Choose BGES Group for Your Insurance Needs?
Navigating the complexities of construction insurance requires a specialist who understands the industry’s unique challenges. That’s where BGES Group excels.
As one of the Tri-State area’s leading construction insurance specialists, BGES Group has a proven track record of helping contractors secure tailored insurance solutions. Here’s why contractors trust BGES Group:
1. Industry Expertise
With years of experience in construction insurance, BGES Group understands the specific risks contractors face and can recommend the right policies to protect your business.
2. Customized Coverage
BGES Group works with top-tier insurance carriers to create policies that fit your business’s needs and budget.
3. Boutique-Like Service
Clients benefit from personalized attention and support throughout the policy selection and claims process.
4. Competitive Pricing
BGES Group leverages its industry relationships to secure competitive rates without compromising coverage quality.
5. Comprehensive Solutions
In addition to CGL and umbrella policies, BGES Group offers workers’ compensation, payroll services, and group health insurance programs for contractors.
Contact BGES Group Today
Don’t let unexpected claims put your business at risk. Let BGES Group help you secure the comprehensive coverage you need to safeguard your contracting business.
Contact Gary Wallach at BGES Group to get started:
• Phone: 914-806-5853
• Email: bgesgroup@gmail.com
• Website: bgesgroup.com
Final Thoughts
A Commercial General Liability policy is a must-have for contractors looking to protect their business from financial ruin caused by third-party claims. Coupled with a Commercial Umbrella Liability policy, you can gain peace of mind knowing your business is prepared for even the most significant risks.
Turn to BGES Group, your trusted partner for construction insurance in the Tri-State area. With their expertise and commitment to client success, BGES Group ensures your business gets the coverage it needs to thrive in today’s competitive environment. Reach out today and take the first step toward securing your business’s future.