Features of Contractor's General Liability Insurance

When you are a contractor, life is not always a bed of roses. You may never even realize where a claim comes from, and the next thing you know is that you are spending a lot of money and time in the courtroom settling a lawsuit. This is where commercial general liability insurance will be beneficial to you. The insurance is aimed at protecting owners and operators from claims that may come from a myriad of sources. In the past it was easier to choose a good insurance company as there were just a few of them out there and most had a proven track record. Now there are so many companies operating in California, that choosing the right one has become extremely difficult. Almost all companies will promise you similar rates and features. But not all deliver as promised.

Basic Types of Coverage

There are five basic types of business liabilities which are covered by general liability insurance. The first is bodily injury which includes any sort of physical harm to a person working at your place of business or any physical harm caused by an employee of yours at a client's site. This is an important part of your policy as most claims arise in this area. The second area of coverage is products liability. This which covers losses which may arise after completion of work for a customer. The third area is personal injury. Personal injury does not always mean physical injury. Personal injury also covers any sort of damage or harm to the reputation of a person or his rights due to abusive slander, copyright infringement, false charges and arrest, invasion of privacy, etc. The fourth area of coverage is advertising injury which includes any damage done by an advertisement for your company. Finally, we have independent contractor's liability insurance. This comes into play if you are hiring any independent contractors to work for you.

Choosing the company

There are many insurance companies out there offering policies to contractors working in the state of California. Choosing a company is not always a simple proposition. It is important to look at the ratings of various companies being considered. Insurance companies are assigned ratings based upon financial strength. The most well-known insurance ratings are published by A.M. Best. Many contractors are most comfortable using an "A" rated insurance carrier. Your agent or broker will be able to help you find an insurance provider that best meets your needs.