General liability insurance for contractors protects owners and their companies from some of the most common accidents that a business can experience. Because of this, it is the most popular type of insurance for small businesses and is usually the first policy purchased by new contracting businesses.
What is General Liability Insurance?
For contractors, a general liability policy should be considered the bare minimum coverage for your business and in many areas is required by law. A general liability policy covers you for many of the most common types claims against a business. While it is great to cover some of the most common liabilities, general liability is meant for all types of businesses and is usually never the ideal solution on its own.
What does General Liability Insurance Cover?
General liability insurance protects a business from unexpected expenses for things like injuries to people that are not your employee, damage to property you don’t own, and things like accusations of libel and slander. As an example, if a customer trips over an extension cord or ladder while you are working, you could be liable for the injury. General Liability insurance would help with things like attorney fees, settlements, medical bills and more.
How Much does General Liability Insurance Cost?
Since every business is unique, it’s important to take many different factors into account when determining the cost of general liability insurance. Some of the factors used to determine the cost are the size of the company, the specific industry that you are in, the amount of coverage that you need, and the size of your deductible. For small businesses, you can typically expect a premium that will range from around $200 per month to several thousand with most paying less than $1,000 per month.